P,Q and R are partners sharing profits and losses in the ratio of 5:32. They decide to
share future profits in the ratio of 2.3.5 with effect from 1st April, 2018. The following
items appear in the balance sheet as at 31st March, 2018. General reserve 90,000,
contingency reserve 15,000, profit and loss account (Cr) 45,000, advertisement
suspense account (Dr) 60,000. Pass the necessary journal entries, when these accounts
are not required to be shown in the books of reconstituted firm.
Answers
Z's Capital a/c..............Dr. 70200
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200(Being adjustment entry passed)
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200(Being adjustment entry passed)Working notes:
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200(Being adjustment entry passed)Working notes:1. Amount to be distributed = general reserve + P and L a/c - advertisement suspense
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200(Being adjustment entry passed)Working notes:1. Amount to be distributed = general reserve + P and L a/c - advertisement suspense= 6000 +240000 -12000 = 234000
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200(Being adjustment entry passed)Working notes:1. Amount to be distributed = general reserve + P and L a/c - advertisement suspense= 6000 +240000 -12000 = 2340002. Calculation of sacrifice and gain
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200(Being adjustment entry passed)Working notes:1. Amount to be distributed = general reserve + P and L a/c - advertisement suspense= 6000 +240000 -12000 = 2340002. Calculation of sacrifice and gainX: 2/10-5/10 = (3/10) sacrifice
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200(Being adjustment entry passed)Working notes:1. Amount to be distributed = general reserve + P and L a/c - advertisement suspense= 6000 +240000 -12000 = 2340002. Calculation of sacrifice and gainX: 2/10-5/10 = (3/10) sacrificeZ: 5/10 - 2/10 = 3/10 gain
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200(Being adjustment entry passed)Working notes:1. Amount to be distributed = general reserve + P and L a/c - advertisement suspense= 6000 +240000 -12000 = 2340002. Calculation of sacrifice and gainX: 2/10-5/10 = (3/10) sacrificeZ: 5/10 - 2/10 = 3/10 gainin place of xyz keep pqr
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200(Being adjustment entry passed)Working notes:1. Amount to be distributed = general reserve + P and L a/c - advertisement suspense= 6000 +240000 -12000 = 2340002. Calculation of sacrifice and gainX: 2/10-5/10 = (3/10) sacrificeZ: 5/10 - 2/10 = 3/10 gainin place of xyz keep pqr pls mark me as brainliest
Z's Capital a/c..............Dr. 70200To X's Capital a/c 70200(Being adjustment entry passed)Working notes:1. Amount to be distributed = general reserve + P and L a/c - advertisement suspense= 6000 +240000 -12000 = 2340002. Calculation of sacrifice and gainX: 2/10-5/10 = (3/10) sacrificeZ: 5/10 - 2/10 = 3/10 gainin place of xyz keep pqr pls mark me as brainliest and follow mee