Commerce Exam > Commerce Questions > X, Y and Z are partners in a firm sharing pro...
Start Learning for Free
X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000?
Most Upvoted Answer
X, Y and Z are partners in a firm sharing profits in the ratio of 3 : ...
Journal Entry to Not Show Credit Balance and General Reserve in Balance Sheet
To not show the credit balance of 60,000 and general reserve of 30,000 in the balance sheet, the following journal entry needs to be made:
(D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000
Explanation:
- The partners, X, Y, and Z, have been sharing profits in the ratio of 3:2:1 respectively.
- They have now decided to share future profits equally, which means that their profit sharing ratio has changed to 1:1:1.
- The credit balance of 60,000 and general reserve of 30,000 should not be shown in the balance sheet as per the question.
- As per the new profit sharing ratio, each partner's share of the credit balance and general reserve should also be equal.
- Therefore, X, Y, and Z should be credited with an equal amount of 30,000 each in the journal entry to adjust for the credit balance and general reserve.
- The journal entry to not show the credit balance and general reserve in the balance sheet is as follows:
Credit side:
- X's capital account - 30,000
- Y's capital account - 30,000
- Z's capital account - 30,000
No debit entry is required as the credit balance and general reserve are already shown in the Profit and Loss Account.
To not show the credit balance of 60,000 and general reserve of 30,000 in the balance sheet, the following journal entry needs to be made:
(D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000
Explanation:
- The partners, X, Y, and Z, have been sharing profits in the ratio of 3:2:1 respectively.
- They have now decided to share future profits equally, which means that their profit sharing ratio has changed to 1:1:1.
- The credit balance of 60,000 and general reserve of 30,000 should not be shown in the balance sheet as per the question.
- As per the new profit sharing ratio, each partner's share of the credit balance and general reserve should also be equal.
- Therefore, X, Y, and Z should be credited with an equal amount of 30,000 each in the journal entry to adjust for the credit balance and general reserve.
- The journal entry to not show the credit balance and general reserve in the balance sheet is as follows:
Credit side:
- X's capital account - 30,000
- Y's capital account - 30,000
- Z's capital account - 30,000
No debit entry is required as the credit balance and general reserve are already shown in the Profit and Loss Account.
Community Answer
X, Y and Z are partners in a firm sharing profits in the ratio of 3 : ...
OPSR = 3:2:1
NPSR = 1:1:1
therefore , sacrificing ratio = OPSR -NPSR
x's sacrifice = 3/6-1/3 =1/6 [ sacrifice ]
y's sacrifice = 2/6 - 1/3 = 0
z's sacrifice = 1/6 - 1/3 = -1/6 [ gain ]
net effect = p and l credit balance = 60,000
+ general reserve = 30,000
= 90,000
entry would be
z's cap ac dr 15000
to x's cap ac 15000
therefore answer is A
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000?
Question Description
X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000?.
X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000?.
Solutions for X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000? defined & explained in the simplest way possible. Besides giving the explanation of
X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000?, a detailed solution for X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000? has been provided alongside types of X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000? theory, EduRev gives you an
ample number of questions to practice X, Y and Z 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 60,000 and a General Reserve of 30,000. If these are not to be shown in balance sheet, in the journal entry : (A) Cr. X by 15,000; Dr. Z by 15,000 (B) Dr. X by 15,000; Cr. Z by 15,000 (C) Cr. X by 45,000; Cr. Y by 30,000;Cr. Z by 15,000 (D) Cr. X by 30,000; Cr. Y by 30,000; Cr. Z by 30,000? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup