Page 147 - VIRANSH COACHING CLASSES

Solutions : - Journal Entries in the Books of the Firm
Date Particulars L. F. Debit (`) Credit (`)
1.4.2019 General reserve A/c ...........................................Dr. 7,500
To Padma’s capital A/c 4,500
To Kumud’s capital A/c 3,000
(Being general reserve distributed among old
partners)
Profit & Loss Adjustment A/c.................. .........Dr. 4,950
To Stock A/c 3,600
To Machinery A/c 750
To RDD A/c 600
(Being decrease in the value of assets and RDD
increased)

Furniture A/c .....................................................Dr. 1,950
Building A/c .....................................................Dr. 9,000
To Profit & Loss Adjustment A/c 10,950
(Being appreciation in the value of assets)

Profit & Loss Adjustment A/c ...........................Dr. 6,000
To Padma’s Capital A/c 3,600
To Kumud’s Capital A/c 2,400
(Being Profit on Revaluation distributed in Profit
sharing ratio)
Bank A/c Dr. 30,000
To Asha’s capital A/c 30,000
(Being cash brought in by Asha as capital)

Bank A/c ..........................................................Dr. 15,000
To Goodwill’s A/c 15,000
(Being cash brought in by Asha as goodwill)

Goodwill A/c .....................................................Dr. 15,000
To Padma’s capital A/c 9,000
To Kumud’s capital A/c 6,000
(Being goodwill distributed in sacrifice ratio)

Padma’s capital A/c ..........................................Dr. 4,500
Kumud’s capital A/c .........................................Dr. 3,000
To Bank A/c 7,500
(Being half the amount of goodwill withdrawn by
old partners)

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