| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| General Reserve Contingency Reserve Profit and Loss A/c | 36,000 6,000 18,000 | Advertisement Suspense A/c | 24,000 |
Pass necessary Journal entries.
(b) Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of Rs. 72,000 at the time of admission of Z, when there is no claim against it. The firm has two partners X and Y.
(c) Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of Rs. 72,000 at the time of admission of Z, when there is claim of Rs. 48,000 against it. The firm has two partners X and Y .
(d) Give the Journal entry to distribute ‘Investment Fluctuation Reserve’ of Rs. 24,000 at the time of admission of Z, when Investment (Market Value Rs. 1,10,000) appears at Rs. 1,20,000. The firm has two partners X and Y.
(e) Give the Journal entry to distribute ‘General Reserve’ of Rs. 4,800 at the time of admission of Z, when 20% of General Reserve is to be transferred to Investment Fluctuation Reserve. The firm has two partners X and Y .
(f) A, B and C were partners sharing profits and losses in the ratio of 6 : 3 : 1. They decide to take D into partnership with effect from 1st April, 2019. The new profit-sharing ratio between A, B, C and D will be 3 : 3 : 3 : 1. They also decide to record the effect of the following without affecting their book values, by passing a single adjustment entry:
| Particulars | Book Values (Rs.) |
| General Reserve | 1,50,000 |
| Contingency Reserve | 60,000 |
| Profit and Loss A/c (Cr.) | 90,000 |
| Advertisement Suspense A/c (Dr.) | 1,20,000 |
Pass the necessary single adjustment entry, through the Partner’s Current Account.
Solution
