Question

geeta sunita and anita were partners ina a firm sharing profit in5:3:2 on 1 jan 2015 they admit yogita as new partner the p&l show credit balance of rs 20000 which was credited in firms capital ac of geeta and sunita or anita in their profit share ratio did the acc give correct treatement ? give reason to support your answer

Answer 1

 



Ayush in Accountancy 

... partners in a firm sharing profits and losses in the ratio ...

Hi Ayush,
We have rechecked the solution and it has been posted correctly on our website. The solution provided by you is incomplete due to which the amount of debits are not equal to total credits to Leela and Meeta's Capital Accounts. The debit entry for General Reserves for Rs 16,000 has not been done due to which the solution seems to be incorrect. In the solution reflected at our website we have posted a compound entry consisting of simultaneous debit of both General Reserves and Profit and Loss Accounts with Rs 16,000 and Rs 24,000 respectively, totaling to Rs 40,000. This Rs 40,000 has been distributed to the Old Partners in old profit sharing ratio i.e. 5:3 by passing following journal entry:
........ DateParticulars------L.F.Amount
RsAmount
Rs2007     Jan 1General Reserve A/cDr. 16,000  Profit and Loss A/cDr. 24,000   To Leela’s Capital A/c   25,000  To Meeta’s Capital A/c   15,000 (General reserve and balance in Profit and Loss credited to old
partners’ capital account in their old ratio, 5:3)  
However, we can pass both the entries individually and the solution for the same has already been provided in the previous question asked by you.

Answer 2

yes becoz p/l cr. side means loss which should b written of from the partner's capital a/c