Question 7 Chapter 4 – Unimax Class 12 Part 1
Table of Contents
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)
- 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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