Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need right of my question thank you Dr. 4. Regarding Accumulated Profits/Losses or Reserve & Surplus It is needless to state that if there is
need right of my question thank you
Dr. 4. Regarding Accumulated Profits/Losses or Reserve & Surplus It is needless to state that if there is any accumulated profits or losses or other surpluses, the same should be transferred to old partner's Capital or Current Account as per old profit sharing ratio before the admission of new partner: Entries (a) For transferring accumulated profits Profit & Loss A/C (Cr.) General Reserve A/C Dr. (as per old profit sharing ratio) Any other Surpluses A/C Dr. To Old Partner's Capital A/C (b) For transferring accumulated losses Old Partner's Capital A/C Dr. 049 To Accumulated Losses A/C Illustration 28. X. Y and Z were in partnership sharing profits and losses in the ratio 3 : 2:1. Their Balance Sheet stood as under: Balance Sheet as at 1.4.2012 Liabilities Assets Capital Fixed Assets 80,000 40,000 Machinery Replacement 15,000 Y 30,000 Investment: z 20.000 90,000 Investment (MV 7.000) 10,000 General Reserve 12.000 Current Asset 33,000 Machinery Replacement Fund 16,000 Investment Fluctuation Fund 15,000 Current Liabilities 5,000 1,38,000 1,38,000 Show the entries for accumulated profits/reserves assuming that Mr. T is admitted as partner for 1/5th shareStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started