Question 59 Chapter 5 of +2-A
Table of Contents
59. X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2019, they admit Z as a partner for 1/5th share in profits. On that date, there was a balance of 1,50,000 in General Reserve and a debit balance of 20,000 in the Profit and Loss Account of the firm. Pass necessary Journal entries regarding adjustment of reserve and accumulated
profit/loss.
The solution of Question 59 Chapter 5 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| General Reserve A/c | Dr | 1,50,000 | |||
| To X’s Capital A/c | 90,000 | ||||
| To X’s Capital A/c | 60,000 | ||||
| (Being General reserve transferred to the partners’ capital a/c in the ratio of 3:2) | |||||
| X’s Capital A/c | Dr | 12,000 | |||
| Y’s Capital A/c | Dr | 8,000 | |||
| To Profit and Loss A/c | 20,000 | ||||
| (Being Increase in liabilities, decrease in assets and creation of reserves and provisions transferred to Revaluation Account) | |||||
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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