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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 -


 Books of Naresh and Bishwajeet

Journal

Date

Particulars

L.F.

Amount

Rs

Amount

Rs

 

General Reserve A/c

Dr.

 

36,000

 

 

To Naresh’s Capital A/c

 

 

 

12,000

 

To Raj Kumar’s Capital A/c

 

 

 

12,000

 

To Bishwajeet’s Capital A/c

 

 

 

12,000

 

(General Reserve distributed among old partner in old ratio)

 

 

 

 

 

 

 

 

 

 

 

Naresh’s Capital A/c

Dr.

 

5,000

 

 

Raj Kumar’s Capital A/c

Dr.

 

5,000

 

 

Bishwajeet’s Capital A/c

Dr.

 

5,000

 

 

To Profit and Loss A/c

 

 

 

15,000

 

(Debit balance of Profit and Loss Account written off)

 

 

 

 

 

 

 

 

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