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Question 14 Chapter 4 of +2-Part-1
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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.
- When relevant accounts are closed.
- When relevant accounts are not closed.
The solution of Question 14 Chapter 4 of +2 Part-1: –
(a) When relevant aaccounts are closed:
Journal | |||||
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:
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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 |
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Calculation of amount to be debited and credited :
=(10,000= Rs.1,400
+11,000)*1/5
Journal | |||||
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 (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- 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
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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