Question 60 Chapter 5 of +2-A
Table of Contents
60. X and Y were partners in a firm sharing profits and losses in the ratio of 2 : 1. Z was admitted for 1/3rd share in the profits. On the date of Z’s admission, the Balance Sheet of X and Y showed General Reserve of 2,50,000 and a credit balance of 50,000 in Profit and Loss Account. Pass necessary Journal entries on the treatment of these items on Z’s admission.
The solution of Question 60 Chapter 5 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| General Reserve A/c | Dr | 2,50,000 | |||
| Profit and Loss A/c | Dr | 50,000 | |||
| To X’s Capital A/c | 2,00,000 | ||||
| To Y’s Capital A/c | 1,00,000 | ||||
| (Being distributed the balance of general reserve and profit and loss account among the old partners in their old profit sharing ratio i.e. 2:1) | |||||
Working Note: –
Calculation of distributed the balance of general reserve and profit and loss account
| balance of general reserve and profit and loss account | = | 2,50,000 | +50,000 |
| = | 3,00,000 |
Old ratio of X & Y= 2 : 1
| X will get | = | 3,00,000 | X | 2 |
| 3 | ||||
| = | 2,00,000 |
| Y will get | = | 3,00,000 | X | 1 |
| 3 | ||||
| = | 1,00,000 |
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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