Accountancy, asked by hartajsingh198, 9 months ago

8. X and Y are partners in 4 : 1 ratio. They had 40,000 in profit and loss alc. Their future
ratio will be 2:3. They decided not to close the profit and loss acccount. You are required to
pass necessary adjustment entry.
[Ans. X Credit 16,000 ; Y Debit 16,000]​

Answers

Answered by sshi
3

answr

LOGIN

JOIN NOW

What would you like to ask?

ACCOUNTANCY

Asked on December 26, 2019 byPretty Dobhal

A, B, and C are partners sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5 with effect from 1st April ,2018. They also decided to adjust the following accumulated profit, losses and reserves without affecting their book values, by passing an adjustment entry:

Book value (Rs.)Profit and Loss A/c15,000General Reserve60,000Advertising Suspense A/c30,000The necessary adjustment entry will be:

A

Dr. C and Cr. A with Rs. 31,500.

B

Dr. A and Cr. C with Rs. 13,500.

C

Dr. B and Cr. A with Rs. 13,500.

D

Dr. A and Cr. B with Rs. 13,500.

Share

Save

ANSWER

To get the adjustment entry done, first need to find out the distribution of accumulated profit /loss. Since books of account are not to be affected due to change in profit sharing ratio , hence an adjustment entry need to be passed:

Below are the accumulated profits need to be distributed:

Particulars                                Book Value        

Profit & Loss A/c                         15000

General Reserve                        60000               

Advertising Suspense A/c         30000                               

                                                -----------------

Total Surplus                              105000

                                                  -----------------

Share in Accumulated Profits:                A                      B                        C

As per old Ratio                                   52500                31500               21000

As per New Ratio                                 21000                31500               52500

                                                           --------------           --------------           --------------

(Sacrifice)/Gain                                     (31500)                 NIL                 31500

                                                            -------------           ---------------         ---------------

Hence below adjustment entry will be passed:

C's Capital A/c                                      Dr. 31500

        To A's Capital A/c                                                  31500

Answer ByToppr

SHARE

Practice important Questions

Class 12 Accounts Chapter 4

146 Qs

Class 12 Accounts Chapter 3

57 Qs

Related Questions to study

A and B are partners in a firm sharing profits in the ration of 2:1. C is admitted in the firm with 1/4th share in profits. He will bring  Rs. 30,000 as capital and capitals of A and B are to be adjusted in their profit hsaring ratio. Calculate the new capitals of A and B.

Save

View Answer

A & B are equal partners. They wanted to take C as a third partner and for this purpose goodwill was valued at 1,20,000. The journal entry for adjustment of value of goodwill through partners capital accounts will be

A Capital A/c      Dr.

B Capital A/c      Dr.

   To Capital A/c20,000

20,000

40,000

C Capital A/c      Dr.

   To A Capital A/c

   To B Capital A/c40,000

20,000

20,000C Capital A/c      Dr.

   To A Capital A/c

   To B Capital A/c40,000

15,000

25,000Premium for Goodwill A/c      Dr.

   To A Capital A/c

   To B Capital A/c40,000

20,000

20,000

Save

View Answer

VIEW MORE

20,000+

Learning videos

8,000+

Fun stories

10,000+

Fundamental concepts

Answered by asharanisahoo28
0

Explanation:

kskskdmfkfmddjdmkdfnmdndmdmf

Similar questions