Question

X Y and Z other partners in the ratio 5 is to 4 is to be decided to share the future profit in the ratio 2 is to 2 is to 1 the balance sheet show the balance of 90000 in the general reserve account 60000 in profit and loss account record the necessary general entry in the com the partners have decided to distribute profit and the general reserve before bringing the new profit sharing ratio NSE code​

Answer 1

Answer:

JOURNAL

1. General reserve a/c..... Dr. 150000

Contingency reserve a/c.... Dr. 60000

Profit and loss a/c... Dr. 90000

To Advertisement suspense a/c 120000

To A's Current a/c 108000

To B's Current a/c 54000

To C's Current a/c 18000

(Being adjustment of accumulated reserves through the partner's current accounts)

Answer 2

General reserve a/c.....

150000

Contingency reserve a/c.....

60000

Profit and loss a/c.......

90000

To Advertisement suspense a/c....

120000

To A's current a/c .......

108000

To B's current a/c......

54000

To C's current a/c.......

18000

( Being adjustment of accumulated reserves trough the partners current account ).....