Question 31 Chapter 3 of Class 12 Part - 1 VK Publication

Question 31 Chapter 3 of Class 12 Part – 1

Table of Contents

The solution of Question 31 Chapter 3 of Class 12 Part – 1: –

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

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

31. Pari and Neha are partners in a firm sharing profits and losses equally. On 1st April, 2018, They decided to share future profits in the ratio of 2:1. On the day of the implementation of the decision, the Profit and Loss Account showed a debit balance of Rs. 30,000 and a General Reserve ot Rs. 18,000. Record the necessary journal entries for the distribution of the balance in the Profit and Loss Account and General Reserve for the change in the profit-sharing ratio.

The solution of Question 31 Chapter 3 of Class 12 Part – 1: –

Journal Entry

Date	Particulars		L . F	Dr. ₹	Cr. ₹
2018	Pari’s Capital A/c	Dr.		15,000
April 1	Neha’s Capital A/c	Dr.		15,000
	To Profit and Loss A/c				30,000
	( Being undistributed loss transferred to existing partners’ capital account in their old Ratio , i e., 1:1)
	General Reserve A/c	Dr.		18,000
	To Pari’s Capital A/c				9,000
	To Neha’s Capital A/c				9,000
	( Being general reserve transferred to existing partners’ capital account in their old Ratio , i e., 1:1)