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

Question 60 Chapter 5 of +2-A

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)

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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2 Book 1 min - Question 60 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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