Q5 X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They decided to share future profits equally. The Profit and Loss Account showed a Credit balance of ₹60,000 and a General Reserve of ₹30,000. If these are not to be shown in balance sheet, in the journal entry:
Cr. X by ₹15,000: Dr. Z by ₹15,000
Dr. X by ₹15,000; Cr. Z by ₹15,000
Cr. X by ₹45,000; Cr. Y by ₹30,000; Cr. Z by ₹15,000
Cr. X by ₹30,000; Cr. Y by ₹30,000; Cr. Z by ₹30,000
Answers
Answer:
Cr. X by ₹30,000; Cr. Y by ₹30,000; Cr. Z by ₹30,000
Explanation:
A journal entry is used to record a business transaction in the accounting records of a business. A journal entry is usually recorded in the general ledger; alternatively, it may be recorded in a subsidiary ledger that is then summarized and rolled forward into the general ledger. The general ledger is then used to create financial statements for the business.
Each business wants to know the operating results (profits) from its operations. The last step of the accounting cycle is to analyse the Gross Profit of the business followed by Net profit. To determine the Gross Profit, Trading Account is prepared, and for Net Profit, Profit and Loss Account is prepared. Although these are two separate accounts, but are prepared together in general ledger as part of final financial statements.
Cr. X by ₹30,000; Cr. Y by ₹30,000; Cr. Z by ₹30,000
This is the correct journal entry, as the partners are agreeing to share future profits equally and therefore the credit balance of ₹60,000 and the general reserve of ₹30,000 need to be divided equally among the partners, which would be ₹30,000 each for X, Y, and Z. This journal entry credits each of their accounts for ₹30,000.
for more visit-https://brainly.in/question/25428732
#SPJ3