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Question -

Naresh, Raj Kumar and Bishwajeet are equal partners. Raj Kumar decides to retire. On the date of his retirement, the Balance Sheet of the firm showed the following: General Reserves Rs 36,000 and Profit and Loss Account (Dr.) Rs 15,000.
Pass the necessary journal entries to the above effect.



Answer -


┬аBooks of┬аNaresh┬аand┬аBishwajeet

Journal

Date

Particulars

L.F.

Amount

Rs

Amount

Rs

┬а

General Reserve A/c

Dr.

┬а

36,000

┬а

┬а

To┬аNareshтАЩs┬аCapital A/c

┬а

┬а

┬а

12,000

┬а

To Raj KumarтАЩs Capital A/c

┬а

┬а

┬а

12,000

┬а

To┬аBishwajeetтАЩs┬аCapital A/c

┬а

┬а

┬а

12,000

┬а

(General Reserve distributed among old partner in old ratio)

┬а

┬а

┬а

┬а

┬а

┬а

┬а

┬а

┬а

┬а

┬а

NareshтАЩs┬аCapital A/c

Dr.

┬а

5,000

┬а

┬а

Raj KumarтАЩs Capital A/c

Dr.

┬а

5,000

┬а

┬а

BishwajeetтАЩs┬аCapital A/c

Dr.

┬а

5,000

┬а

┬а

To Profit and Loss A/c

┬а

┬а

┬а

15,000

┬а

(Debit balance of Profit and Loss Account written off)

┬а

┬а

┬а

┬а

┬а

┬а

┬а

┬а

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