You visited us 1 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard X

Mathematics

Face Value and Market Value

X and Y are...

Question

$X$ and $Y$ are partners in a firm sharing profits and losses in the ratio $3 : 2$ . On $1^{s t}$ April,2018, they admit $Z$ as a new partner for $1 / 5^{t h}$ share in profits. On that date, there was a balance of $R s . 1, 50, 000$ in General Reserve and a debit balance of $R s . 20, 000$ in the Profit and Loss Account of the firm. Pass necessary Journal entries regarding adjustment of reserve and accumulated of reserve and accumulated profit/loss.

Open in App

Solution

(i) General Reserve a/c... Dr. 150000
To X's Capital a/c 90000
To Y's Capital a/c 60000
(Being adjustment of general reserve in the ratio of 3:2)

(ii) X's Capital a/c... Dr. 12000
Y's Capital a/c... Dr. 8000
To Profit and loss a/c 20000
(Being adjustment of debit balance of profit and loss account in the ratio of 3:2)

Suggest Corrections

Similar questions

Q. X and Y are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April, 2019, they admit Z as a partner for 1/5th share in profits. On that date, there was a balance of ₹ 1,50,000 in General Reserve and a debit balance of ₹ 20,000 in the Profit and Loss Account of the firm. Pass necessary Journal entries regarding adjustment of reserve and accumulated profit/loss.

A

and

B

were partners in a firm sharing profit in

4 : 3

ratio. On

1^{s t}

April,2018, they admitted

C

as a new partner. On the date of

C^{'} s

admission, the Balance Sheet of

A

and

B

showed a General Reserve of

R s . 84, 000

and a debit balance of

R s . 8, 400

in the 'Profit and Loss Account'. Pass necessary Journal entries.

Leela and Meeta were partners in a firm sharing profits and losses in the ratio of 5:3. On 1st April, 2014 they admitted Om as a new partner. On the date of Om's admission the balance sheet of Leela and Meeta showed a balance of Rs 1,60,000 in General reserve and Rs 2,40,000 (Cr) in Profit and Loss Account. Record necessary journal entries for the treatment of these items on Om's admission. The new profit sharing ratio between Leela, Meeta and Om was 5:3:2.

X, Y

and

Z

are partners in a firm sharing profits and losses in the ratio in the ratio of

3 : 2 : 1

Z

retires from the firm on 31st march, 2018. On the date of

Z^{'} s

retirement, the following balance appeared in the books of the firm:
General Reserve

R s . 1, 80, 000

Profit and Loss Account (Dr.)

R s . 30, 000

Workmen Compensation Reserve

R s . 24, 000

which was no more required.
Employee's Provident Fund

R s . 20, 000

Pass necessary Journal entries for the adjustment of these items on

Z^{'} s

retirement.

X and Y were partners in a firm sharing profits and losses in the ratio of 3:2. Their Balance Sheet as at 31st March, 2017 was as follows:

$\begin{matrix} Capital and Liabilities & Rs & Assets & Rs Creditors & 42, 000 & Current Assets & 2, 00, 000 Employee's Provident Fund & 20, 000 & Investment & 50, 000 Contingency Reserve & 30, 000 & Furniture & 20, 000 Profit & Loss Account & 45, 000 & Machinery & 90, 000 Workmen Compensation Reserve & 18, 000 & Advertisement Expenditure Investment Fluctuation Reserve & 25, 000 & (Deferred Revenue Capitals: X 1, 20, 000 & Expenditure) & 20, 000 Y 80, 000 - ------ - & 2, 00, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 3, 80, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 3, 80, 000 - -------- - \end{matrix}$

They admit Z into partnership on 1st April, 2017 and the new profit sharing ratio is agreed at 2 : 1 : 1. It is estimated that:

(i) Claim on account of Workmen's Compensation is estimated at Rs 10,000.

(ii) Market value of Investments is Rs 46,000.

Give necessary journal entries to adjust accumulated profits and losses.

Join BYJU'S Learning Program