Question

X and Y are sharing profits and losses in the ratio of 3:2. On admission of W they decide to share future profits and losses in the ratio of 3:2:2 .They also decide to record the effect of the following accumulated profits losses and reserves without affecting their book values by passing a single entry. hline Particulars 6 000 hline General Reserve 24 000 hline Profit and Loss A/c (Credit) 12 000 hline Advertisement Suspense A/c 1200k Values (Rs) hline Pass the adjustment entry. ​

Answer 1

Answer:

Z's Capital a/c..............Dr. 70200

To 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

2. Calculation of sacrifice and gain

X: 2/10-5/10 = (3/10) sacrifice

Z: 5/10 - 2/10 = 3/10 gain

Explanation:

I hope it helps you.

Please mark me as a brainleist