Pls help me to solve this?
Answers
Answer:
Entry for Goodwill Adjustment:
As Goodwill is already shown in Balance sheet (Assert Side) We no need to raise goodwill during reconstitution of firm.
Entry for cancellation of goodwill:
Jan Capital A/c Dr 50,000
Feb Capital A/c Dr 30,000
March Capital A/c Dr 20,000
to Goodwill 1,00,000
(Being Goodwill adjusted to partners in old profit sharing ratio)
_______________________________________________________
Entry for adjustment of Genral reserve:
Genral reserve A/c Dr 12,000
to Jan Capital A/c 6,000
to Feb Capital A/c 3,600
to March Capital A/c 2,400
(Being General reserve adjusted to partners in old profit sharing ratio)
_______________________________________________________
Entry for Adjustment of revaluation loss:
Jan Capital A/c Dr 2000
Feb Capital A/c Dr 1200
March Capital A/c Dr 800
to Revaluation Loss 4000
*Notes for Revaluation Loss in Attachment.
________________________________________________________
If you have any further doubts feel free to contact me through Mail
Mail id : [email protected]
Please send me a mail if the answer is correct after verfying this with your book
