Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | |
General Reserve | 25,000 | Land and Building | 1,50,000 | |
Profit and Loss A/c | 35,000 | Machinery | 50,000 | |
Machinery Replacement Fund | 17,000 | Machinery Replacement Fund Investments | 17,000 | |
Investments Fluctuation Reserve | 20,000 | Investments (Market value Rs. 28,000) | 30,000 | |
Workmen?s Compensation Reserve | 23,000 | Current Assets | 1,18,000 | |
Employees? Provident Fund | 30,000 | Advertisement Expenditure | 25,000 | |
Creditors | 1,00,000 | (Deferred revenue) | ||
Capital A/cs | ||||
P | 1,00,000 | |||
Q | 30,000 | |||
R | 20,000 | 1,50,000 | ||
4,00,000 | 4,00,000 |
Answer:
JOURNAL
Date Particulars LF Amt (Dr) Amt (Cr) 2017 Apr 1 Investments Fluctuation Reserve A/c Dr 2,000 To Investments A/c 2,000 (Being the value of investment brought down to market value) Apr 1 Workmen?s Compensation Reserve A/c Dr 13,000 To Provision for Workmen?s compensation Claim A/c 13,000 (Being the workmen?s compensation claim provided for) Apr 1 General Reserve A/c Dr 25,000 Profit and Loss A/c Dr 35,000 Investments Fluctuation Reserve A/c Dr 18,000 [20,000 ? (30,000 ? 28,000)] Workmen?s Compensation Reserve A/c (23,000 ? 13,000) Dr 10,000 To P?s Capital A/c \[(88,000\times 3/5)\] 52,800 To Q?s Capital A/c \[(88,000\times 1/5)\] 17,600 To R?s Capital A/c \[(88,000\times 1/5)\] 17,600 (Being the transfer of accumulated profits to old partners in their old profit sharing ratio) Apr 1 P?s Capital A/c \[(25,000\times 3/5)\] Dr 15,000 Q?s Capital A/c \[(25,000\times 1/5)\] Dr 5,000 R?s Capital A/c \[(25,000\times 1/5)\] Dr 5,000 To Advertisement Expenditure A/c 25,000 (Being the transfer of accumulated losses to old partners in their old profit sharing ratio)
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