Question 14 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 14 Chapter 4 of +2- Part-

Question 14 Chapter 4 of +2-Part-1

14. (Different Cases) A and B are partners in 2:1 ratio. They had Rs.10,000 in deferred advertisement account and Rs.11,000 in (Dr.) profit and loss account. Show the adjustment under the following cases when their new ratio is agreed to eb 3:2.

  1. When relevant accounts are closed.
  2. When relevant accounts are not closed.

 

The solution of Question 14 Chapter 4 of +2 Part-1: – 

 

(a) When relevant aaccounts are closed:

In the Books of _______________
Date Particulars
L.F. Debit Credit
           
  A’s Capital A/c (21,000*2/3) Dr.   14,000  
  B’s Capital A/c (21,000*1/3) Dr.   7,000  
  To Deferred advertisement a/c       10,000
  To Profit & Loss a/c       11,000
  (Being deferred advertisement account and profit & loss a/c distributed in 2:1 ratio)      
         

 

(b) When relevant accounts are not closed:

Old Ratio = 2 : 1
New Ratio = 3 : 2
Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old ratio – New ratio

 

A’s Share Sacrificing/Gaining = 2 3
3 5
  = 10 – 9
  15
  = 1 (Sacrificing)
  15

 

 

B’s Share Sacrificing/Gaining = 3 2
3 5
  = 5 – 6
  15
  = -1 (Gain)
  15

 

Calculation of amount to be debited and credited :

=(10,000= Rs.1,400
+11,000)*1/5

In the Books of _______________
Date Particulars
L.F. Debit Credit
           
  A’s Capital A/c Dr.   1,400  
  To B’s Capital A/c       1,400
  (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

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

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

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis 

Chapter No. 4 – Cash Flow Statement

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

2 Book 1 min - Question 14 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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