Question

5. Hari and Ravi are partners in a firm sharing profits in the ratio of 5:3. On March 31st,2020 th ii balance sheet showed a
general reserve of rupees 80,000. On 1st April 2020 they decided to admit Mohan as a new partner. The new profit sharing
ratio between Hari, Ravi and Mohan will be 5:3:2. Record the necessary journal entry in the books of the firm in the following
cases
1. when they want to distribute the general reserve.
2. when they do not want to distribute general reserve.​

Answer 1

Answer:

1) General reserve a/c. dr 80000

to hari a/c. 50000

to ravi a/c. 30000

Working note:

Distribution of General reserve in both the partners

Hari's Capital account= 80000×5/8=50000

Ravi's Capital account= 80000×3/8=30000

Hope it helps you