Question 12 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 12 Chapter 4 of +2- Part-

Question 12 Chapter 4 of +2-Part-1

12. (Different Cases) A B and C are partners in 2:2:1 ratio. They admitted D into the firm for 1/5 share. They had Rs.60,000 in profit and loss account. Record the necessary journal entries in the books of the firm under the following circumstances:

  1. When the profit and loss account is closed.
  2. When profit and loss account is not closed and only adjustment entry is passed.

 

The solution of Question 12 Chapter 4 of +2 Part-1: – 

 

(a) When the profit and loss account is closed:

In the Books of _______________
Date Particulars
L.F. Debit Credit
           
  Profit & Loss a/c Dr.   60,000  
  To A’s Capital A/c       24,000
  To B’s Capital A/c       24,000
  To C’s Capital A/c       12,000
  (Being profit distributed in 2:2:1 ratio)      
         

 

(b) When profit and loss account is not closed and only adjustment entry is passed.

Distribution of profit and general reserve or reconstitution of partnership  
Particulars
A B C D
         
Share in Profit in old ratio 2:2:1 (Cr.)30,000 (Cr.)30,000 (Cr.)30,000
Share in Profit in new ratio 8:8:4:5 (Cr.)19,200 (Cr.)19,200 (Cr.)9,600 (Cr.)12,000
Adjustment (Cr.)4,800 (Cr.)4,800 (Cr.)2,400 (Cr.)12,000

 

In the Books of _______________
Date Particulars
L.F. Debit Credit
           
  D’s Capital A/c Dr.   12,000  
  To A’s Capital A/c       4,800
  To B’s Capital A/c       4,800
  To C’s Capital A/c       2,400
  (Being adjustment entry passed)      
         

 

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 12 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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