Question

Abc were partner sharing profit and loss 5:3:2 whose books are closed every year genral reserve 50000 contiguency reserve 5000

Answer 1

Answer:

General reserve a/c..... Dr. 150000

Contingency reserve a/c.... Dr. 60000

Profit and loss a/c... Dr. 90000

To Advertisement suspense a/c 120000

To A's Current a/c 108000

To B's Current a/c 54000

To C's Current a/c 18000

(Being adjustment of accumulated reserves through the partner's current accounts)