Arul and Anitha are partners sharing profits and losses in the ratio of 4 : 3. On 31.3.2018, Ajay was admitted as a partner. On the date of admission, the book of the firm showed a - Accountancy

Question

Arul and Anitha are partners sharing profits and losses in the ratio of 4 : 3. On 31.3.2018, Ajay was admitted as a partner. On the date of admission, the book of the firm showed a general reserve of ₹ 42,000. Pass the journal entry to distribute the general reserve.

Journal Entry

Solution

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	General Reserve A/c ......Dr. To Arul's Capital A/c To Anitha's Capital A/c (Distribution of accumulated profits to old partners capital)		42,000 - -	- 24,000 18,000