Question

TAns. Vaibhav to be debele
10. Mrinal and Mayank are partners in a firm sharing profits in the
share future profits equally. On
the date of change in the profit sharing ratio, the Profit
Account showed a debit balance of 60.000. Record the necessary Journal entry for
distribution of the balance in the Profit & Loss Anunt before the change in the profit
ratio if the Profit and Loss Account is not to be closed
Mayank's Cantal Ne to be debited by 6.000 and Mrinal's Capital Ae to be credit​

Answer 1

Answer:

. Stock a/c....                                               Dr.          60000

   Debtors a/c...                                            Dr.          80000

   Land a/c....                                                Dr.           100000

   Plant and machinery a/c...                       Dr.            40000

                To Z's Capital a/c                                                    130000

                To Premium for goodwill a/c                                  150000

(Being capital and premium for goodwill brought in by C in the form of assets)

2. Premium for Goodwill a/c....                   Dr.             150000

                 To X's Capital a/c                                                    90000

                  To Y's Capital a/c                                                    60000

(Being premium for goodwill distributed among partners in the ratio of 3:2)

Working Note:

1. Calculation of Z's share of goodwill:

Z's share of Goodwill= 600000 * 1/4= 150000

Z's share of capital = 280000 - 150000 = 130000

2. Distribution of premium for goodwill:

X's share= 3/5 * 150000= 90000

Y's share= 2/5 * 150000= 60000

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