# Question 60 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.60 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

Question 60 Chapter 5 of +2-A

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. 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