P Q & R are partners sharing Profits / Losses in the ratio of 6 : 3 : 1. They admit S into partnership on 1/4/20. New profit sharing ratio of P Q R & S will be 3 : 3 : 3 :1. They also decided to record the effect of the following without affecting their book values by passing an Adjustment Entry. Book Values of the following is as : General Reserve Rs. 1,80,000. Contingency reserve Rs. 30,000. P/L A/c (cr.) Rs. 90,000. Advertisement suspense A/c (Dr.) Rs. 1,20,000.
Answers
Answer:
R's Capital A/c (180000×2/10) Dr. 36000
S's Capital A/c (180000×1/10) Dr. 18000
To P's Capital A/c (180000×3/10) 54000
Explanation:
₹
General Reserve 180000
Contingency Reserve 30000
Profit and Loss A/c (Cr.) 90000
(-) Advertisement Suspense A/c (Dr.) (120000)
Total 180000
Gaining and Sacrificing Ratio
Old Ratio P Q R S
6/10 3/10 1/10 -
New Ratio 3/10 3/10 3/10 1/10
P's Sacrificing Ratio- 6/10-3/10=3/10
R's Gaining Ratio - 1/10-3/10= (2/10)
S's Gaining Ratio- (1/10)
This answer has been calculated by using formula old ratio-new ratio