1.

X, Y are partners sharing profits in the ratio of 2 : 1 . On 31st March, 2018, their Balance Sheet showed General Reserve of ₹ 60,000. It was decided that in future they will share profits and losses in the ratio of 3 : 2 . Pass necessary journal entry in each of the following alternative cases :(i) If General Reserve is not to be shown in the new Balance Sheet .(ii) If General Reserve is to be shown in the new Balance Sheet .

Answer» X, Y are partners sharing profits in the ratio of 2 : 1 . On 31st March, 2018, their Balance Sheet showed General Reserve of ₹ 60,000. It was decided that in future they will share profits and losses in the ratio of 3 : 2 . Pass necessary journal entry in each of the following alternative cases :

(i) If General Reserve is not to be shown in the new Balance Sheet .

(ii) If General Reserve is to be shown in the new Balance Sheet .


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