Question

A club has 300 members.In the general meeting held on 31st December 2017 it was decided to raise subscription from 200 p.a to 300 p.a for the year 2018.Members who paid in advance will be allowed at older rates, subscription rec'd in adv.on 31.12.2017 is 2000 subscription in arrear on 31.12.2017 were 3000.subscription in arrear on 31.12.2017recd in 2018 with the exception of those due for 5 members, subscription in arrear for the year 2018 in respect of 15 members. prepare subscription account...​

Answer 1

Explanation:

A and B are partners in a firm sharing profits and losses in the ratio of 3:2.C was admitted for 1/3 rd share in the profits. On the date of C’s admission, the Balance sheet of A and B Showed a General Reserve of Rs. 60,000 and a credit balance of Rs. 20,000 in the profit and Loss Account .Pass necessary Journal entrie for the treatment of these items on C’s admission.