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Question
Dheena, Surya, and Jankai are partners sharing profits and losses in the ratio of 5:3:2. on 31.3.2018, Dheena retired. On the date of retirement, the books of the firm showed a reserve fund of ₹ 50,000. The pass journal entry to transfer the reserve fund.
Solution
| Date | Particulars | L.F. | Debit | Credit |
| 31.03.2018 | Reserve Fund A/c ...Dr. | 50,000 | ||
| To Dheena's Capital A/c | 25,000 | |||
| To Surya's Capital A/c | 15,000 | |||
| To Janaki's Capital A/c | 10,000 | |||
| (Being reserve fund transferred to partners’ capital accounts in their old ratio) |
Given Data:
- Partners: Dheena, Surya, and Jankai
- Profit-sharing ratio: 5:3:2
- Reserve Fund: ₹ 50,000
- Since the reserve belongs to all partners, it will be distributed among them in their old profit-sharing ratio.
Calculation of Share in Reserve Fund:
- Dheena’s share = `₹ 50,000 × (5/10) = ₹ 25,000`
- Surya’s share = `₹ 50,000 × (3/10) = ₹ 15,000`
- Jankai’s share = `₹ 50,000 × (2/10) = ₹ 10,000`
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