P, Q and R are on partnership term sharing profits and losses in the ratio 6:3:1. They decided to take S into
partnership with effect from 1st April 2017. The new profit sharing ratio between P, Q, R, and S will be
3:3:3:1. They also decided to record the effect of the following without affecting the books figures (after the
required adjustment from workmen compensation reserve and investment fluctuation reserve) by passing
single adjustment entry.
General reserve - 1,20,000 Contingent reserve -20,000
Profit and Loss A/c (Cr) -60,000 Advertisement suspense A/c -50,000
Workmen compensation reserve - 20,000 Investment fluctuation reserve -10,000
Additional Information
a) Claim on account of Workmen compensation reserve is 10,000
b) Book Value of investment is 50,000(market value 45,000)
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my comfusion but next time to right answer sorry
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