Question : M, N and O are partners in a firm sharing profits in the ratio equally Their Balance Sheet as at 31-3-2019 showed a debit balance of Profit & Loss A/c 90,000. From 1-4-2019 they will share profits 4:3:2. In the necessary journal entry to give effect to the above arrangement when M, N and O decided not to close the Profit & Loss Account:
Option 1: Dr. M by Rs 10,000; Cr. O by Rs 10,000
Option 2: Cr. M by Rs 10,000; Dr. O by Rs 10,000
Option 3: Dr. M by Rs 20,000; Cr. O by Rs 20,000
Option 4: Cr. M by Rs 20,000; Dr. O by Rs 20,000
Correct Answer: Dr. M by Rs 10,000; Cr. O by Rs 10,000
Solution : Answer = Dr. M by Rs 10,000; Cr. O by Rs 10,000
Sacrificing Ratio = O.R.- N.R.
M = 1/3 - 4/9 = 3-4/9 = -1/9 x 90,000 = 10,000
N = 1/3 -3/9 = 3-3/9 = 0
O = 1/3 - 2/9 = 3-2/9 = 1/9 x 90,000 = 10,000
M's Capital A/c Dr 10,000
To O's Capital A/c 10,000 Hence, the correct option is 1.
Question : A, B and C are partners in a firm sharing profits in the ratio of equally They decided to share profits 4:3:1 w.e.f. 1st April, 2019. On that date the Profit and Loss Account showed the credit balance of Rs 48,000. Instead of closing the Profit and Loss Account, it was decided to record an adjustment entry reflecting the change in profit sharing ratio. In the journal entry :
Option 1: Dr. A by Rs 2000; Dr. B by Rs 8000; Cr. C by Rs 10,000
Option 2: Cr. A by Rs 2000; Cr. B by Rs 8,000; Dr. C by Rs10,000
Option 3: Cr. A by Rs 8,000; Cr. B by Rs 2000; Dr. C by Rs10,000
Option 4: Dr. A by Rs 8,000; Dr. B by Rs 2,000; Cr. C by Rs10000
Question : A, B and C are partner sharing profits in the ratio of equally On 1-4-2020 they decided to share the profits 2:4:6. On the date there was a credit balance of Rs 1,00,000 in their Profit and Loss Account and a balance of Rs 2,00,000 in General Reserve Account. Instead of closing the General Reserve Account and Profit and Loss Account, it is decided to record an adjustment entry for the same. In the necessary adjustment entry to give effect to the above arrangement:
Option 1: Dr A by Rs 50,000; Cr. B by Rs 50,000
Option 2: Cr. A by Rs 50,000; Dr B by Rs 50,000
Option 3: Dr A by Rs 50,000; Cr. C by Rs 50,000
Option 4: Cr. A by Rs 50,000; Dr C by Rs 50,000
Question : Aman and Varun are partners sharing profits in the ratio of equally. Their Balance Sheet showed a balance of Rs 62,000 in the General Reserve Account and a debit balance of 20,000 in the Profit and Loss Account. They now decided to share the future profits 4:3. Instead of closing the General Reserve Account and Profit and Loss Account, it is decided to pass an adjustment entry for the same. In adjustment entry :
Option 1: Dr. Aman by Rs 3,000; Cr. Varun by Rs 3,000
Option 2: Dr. Aman by Rs 5,000; Cr. Varun by Rs 5,000
Option 3: Cr. Aman by Rs 5,000; Dr. Varun by Rs 5,000
Option 4: Cr. Aman by Rs 3,000; Dr. Varun by Rs 3,000
Question : J, K and T are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They decided to share future profits equally. The Profit and Loss Account showed a Credit balance of Rs 45,000 and a General Reserve of Rs 45,000. If these are not to be shown in balance sheet, in the journal entry :
Option 1: Cr. J by RS 15,000: Dr. T by Rs 15,000
Option 2: Dr. J by Rs 15,000; Cr. T by Rs 15,000
Option 3: Cr. J by Rs 45,000; Cr. K by Rs 30,000; Cr. T by Rs 15,000
Option 4: Cr. J by Rs 30,000; Cr. K by Rs 30,000; Cr. T by Rs 30,000
Question : A, B and C were partners sharing profit and losses in the ratio of 7:3:2. From 1st April 2020 they decided to share profit and losses in the ratio of 8:4:3. Goodwill is Rs 2,40,000. In adjustment entry for goodwill
Option 1: Cr A by Rs 12,000, Dr B by Rs 4000 and Dr C by Rs 8,000
Option 2: Dr A by Rs 6000, Cr B by Rs 4000, Cr C by Rs 4000
Option 3: Cr A by Rs 12,000, Dr B by Rs 4000, Dr C by Rs 4,000
Option 4: Dr A by Rs 12,000, Cr B By Rs 8000 and Cr C by Rs 4,000
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