Question

7. Dhoni and Pathan are partners in a firm sharing profits in the ratio of 5:3. They decided
change their profit-sharing ratio to 3:5. On the date of change in the profit-sharing ratio, Profit
& Loss Account showed a credit balance of 50,000 and General Reserve of 24,000. Recor
necessary Journal entry for the distribution of the balance in the Profit & Loss Account and
General Reserve before the change in the profit-sharing ratio.
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Answer 1

Answer:

see as it is before the change in ratio

the distribution would be in 5:3

entry

profit and loss ac dr 50000

to dhoni 's ac 31250

to pathan 's ac 18750

general reserve ac dr 24000

to dhoni's ac 15000

to pathan's ac 9000

Explanation:

p&l and general reserve ac has credit balance so to close them they are debited

perosnal acount are debited bcoz their capital is increased and when capital is increased then capital has credit balance so they are credited as there is increase

calculations

dhoni = 50000* 5/8 = 31250

24000*5/8= 15000

pathan 50000*3/8 =18750

24000*3/8 =9000

Answer 2

Answer: Calculation :

A)) Profit and loss a/c

i) 50000 × 5/8 = 31250

ii) 50000× 3/8 = 18750

B)) General reserve a/c

i) 24000 ×5/8 = 15000

ii) 24000×3/8 = 9000

Explanation:

Journal Entry

Particulars ............amt.........amt

Dhoni's capital a/c.....dr....31250

Pathan's capital a/c..dr.....18750

To Profit &loss a/c............ 50000

( being undistributed loss transferred to the capital a/c of the partners in the old ratio)

General reserve a/c......dr.....24000

To Dhoni's capital a/c................15000

To Pathan's capital a/c...............9000

( being general reserve transferred to the partner's capital a/c in the old ratio ).

Total of journal rs 74000