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Question
Oviya and Kavya are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admit Agalya into the partnership. Their balance sheet as on 31st March, 2019 is as follows:
Balance Sheet as on 31st March 2019
| Liabilities | ₹ | ₹ | Assets | ₹ |
| Capital accounts: | Buildings | 40,000 | ||
| Oviya | 50,000 | Plant | 50,000 | |
| Kavya | 40,000 | 90,000 | Furniture | 30,000 |
| Profit and loss appropriation A/c | 40,000 | Debtors | 20,000 | |
| General reserve | 8,000 | Stock | 10,000 | |
| Workmen’s compensation fund | 12,000 | Cash | 20,000 | |
| Sundry creditors | 20,000 | |||
| 1,70,000 | 1,70,000 |
Pass journal entry to transfer the accumulated profits and reserve on admission.
Solution
| Date | Particulars | L.F. | Debit ₹ | Credit ₹ |
| Profit and loss appropriation A/c .......Dr. General Reserve A/c .......................Dr. Workmen's Compensation Fund A/c ..............Dr. To Oviya Capital A/c To Kavya Capital A/c (Undistributed profit distributed to old partners old ratio) |
40,000 8,000 12,000 - - |
- - - 37,500 22,500 |
||
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RELATED QUESTIONS
Akash, Mugesh and Sanjay are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their balance sheet as on 31st March, 2017 is as follows:
| Liabilities | ₹ | ₹ | Assets | ₹ |
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