Q.4 Ram and Rahim are partners sharing profits in the ratio of 2:1. Their balance sheet showed a balance of
1,50,000 in the General Reserve and 1,20,000 in the Statement of Profit and Loss account. They now decided to
share the future profits in the ratio of 3:2. Instead of closing the General reserve account and Profit and Loss account,
they decide to record an adjustment entry for the same. Pass necessary adjustment entry.
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Answer:
Rahim a/c Dr 18,000
to Ram a/c 18,000
Explanation:
GR / SR = OPSR - NPSR
ram = 2/3 - 3/5 = 10 - 9 / 15 = 1/15 ( SR)
rahim = 1/3 - 2/5 = 5 - 6 / 15 = 1/15 (GR)
adjusted value
general reserve 1,50,000
profit ant loss 1,20,000
total. 2,70,000
2,70,000 × 1/15 = 18,000
rahim a/c Dr. 18,000
to Ram a/c. 18,000
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