Question 7 Chapter 4 - Unimax Class 12 Part 1 - 2021

Question 7 Chapter 4 – Unimax Class 12 Part 1

Table of Contents

The solution of Question 7 Chapter 4 – Unimax Class 12 Part 1:

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

7. X, Y and Z are partners in a firm sharing profits in 1 : 2 : 3. Their Balance Sheet as at 31.3.21, showed a Balance of Rs. 120000 in general Reserve. From 1.4.21 they will share profits equally. Pass the necessary Journal entry to give effect to the above arrangement when X, Y and Z decide not to close the general reserve account.

The solution of Question 7 Chapter 4 – Unimax Class 12 Part 1:

Old Share	New Share	Difference
X 1/6	1/3	1/6_1/3=[1/6] (gain)
Y 2/6	1/3	2/6_1/3=0 (No change)
Z 3/6	1/3	3/6_1/3=[1/6] (loss)

X will pay to Z, 1/6 share of General Reserve ( i.e. 120000 x 1/6 = Rs. 20000)

Journal

Date	Particulars		L.F.	Debit	Credit
	X’s Capital A/c	Dr.		20,000
	To Z’s Capital A/c				20,000
	(Being adjustment entry Passed for share of General Reserve on change in profit sharing ratio)

What is Partnership – Meaning and Its 4 Types

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

The solution of Question 7 Chapter 4 – Unimax Class 12 Part 1:

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)

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