Question

Babita kavita and dinesh were partner in a firm 1 April 2018 they decided to share the profit in the ratio of 2:3:5 on his date the balance sheet of the firm showed a balance 60000 in contigency res

Answer 1

Explanation:

General Reserve A/c -Dr. 60000

To Babita's Capital A/c 12000

To Kavita's Capital A/c 18000

To Dinesh's Capital A/c 30000

Babita's Capital A/c -Dr. 24000

Kavita's Capital A/c - Dr. 36000

Dinesh's Capital A/c -Dr. 60000

To P&L A/c 120000

Babita's Capital A/c -Dr. 72000

Kavita's Capital A/c -Dr. 108000

Dinesh's Capital A/c -Dr. 180000

To Goodwill A/c 360000

Answer 2

Explanation:

• Contingency Reserve Dr. 60,000

To Babita's capital A/c 12,000

To Kavita's capital A/c 18,000

To Dinesh's capital A/c 30,000

• Babita's capital A/c Dr. 24,000

Kavita's capital A/c Dr. 36,000

Dinesh's capital A/c Dr. 60,000

To Profit and loss A/c. 1,20,000

• Babita's capital A/c Dr 72,000

Kavita's capital A/c Dr. 1,08,000

Dinesh's capital A/c Dr. 1,80,000

To Goodwill A/c 3,60,000