Commerce Exam > Commerce Questions > C and d who shared profit equally decided to ...
Start Learning for Free
C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.?
Most Upvoted Answer
C and d who shared profit equally decided to share future profits in t...
Journal Entries to Record Changes in Profit Sharing Ratio and Revaluation
1. Revaluation of Assets and Liabilities
- Building A/c Dr. ₹40,000
- Furniture A/c Dr. ₹4,000
- Creditor's A/c Cr. ₹2,000
- Unrecorded Liability A/c Dr. ₹6,000
2. Adjustment of Reserves and Profit & Loss Account
- General Reserve A/c Dr. ₹12,000 (₹40,000 x 3/5)
- Profit & Loss A/c Dr. ₹8,000 (₹20,000 x 3/5)
- C A/c Cr. ₹10,000 (₹20,000 x 2/5)
Explanation:
Revaluation of Assets and Liabilities
- The increase in the value of the building is recorded by debiting Building A/c with ₹40,000.
- The decrease in the value of furniture and creditor's balance is recorded by debiting Furniture A/c with ₹4,000 and Creditor's A/c with ₹2,000 respectively.
- The unrecorded liability is recorded by debiting Unrecorded Liability A/c with ₹6,000.
Adjustment of Reserves and Profit & Loss Account
- The existing General Reserve balance of ₹40,000 is divided in the ratio of 3:2, which results in C getting ₹24,000 (₹40,000 x 3/5) and D getting ₹16,000 (₹40,000 x 2/5). Thus, General Reserve A/c is debited with ₹12,000 (C's share) and credited with ₹8,000 (D's share).
- The existing Profit & Loss balance of ₹20,000 is also divided in the ratio of 3:2, which results in C getting ₹12,000 (₹20,000 x 3/5) and D getting ₹8,000 (₹20,000 x 2/5). Thus, Profit & Loss A/c is debited with ₹8,000 (D's share) and credited with ₹12,000 (C's share).
- Finally, the balance of ₹10,000 (C's excess share) is transferred to D's A/c by crediting C A/c with ₹10,000 and debiting D A/c with ₹10,000.
In summary, the above journal entries record the revaluation of assets and liabilities and the adjustment of reserves and profit & loss account to reflect the change in profit sharing ratio.
1. Revaluation of Assets and Liabilities
- Building A/c Dr. ₹40,000
- Furniture A/c Dr. ₹4,000
- Creditor's A/c Cr. ₹2,000
- Unrecorded Liability A/c Dr. ₹6,000
2. Adjustment of Reserves and Profit & Loss Account
- General Reserve A/c Dr. ₹12,000 (₹40,000 x 3/5)
- Profit & Loss A/c Dr. ₹8,000 (₹20,000 x 3/5)
- C A/c Cr. ₹10,000 (₹20,000 x 2/5)
Explanation:
Revaluation of Assets and Liabilities
- The increase in the value of the building is recorded by debiting Building A/c with ₹40,000.
- The decrease in the value of furniture and creditor's balance is recorded by debiting Furniture A/c with ₹4,000 and Creditor's A/c with ₹2,000 respectively.
- The unrecorded liability is recorded by debiting Unrecorded Liability A/c with ₹6,000.
Adjustment of Reserves and Profit & Loss Account
- The existing General Reserve balance of ₹40,000 is divided in the ratio of 3:2, which results in C getting ₹24,000 (₹40,000 x 3/5) and D getting ₹16,000 (₹40,000 x 2/5). Thus, General Reserve A/c is debited with ₹12,000 (C's share) and credited with ₹8,000 (D's share).
- The existing Profit & Loss balance of ₹20,000 is also divided in the ratio of 3:2, which results in C getting ₹12,000 (₹20,000 x 3/5) and D getting ₹8,000 (₹20,000 x 2/5). Thus, Profit & Loss A/c is debited with ₹8,000 (D's share) and credited with ₹12,000 (C's share).
- Finally, the balance of ₹10,000 (C's excess share) is transferred to D's A/c by crediting C A/c with ₹10,000 and debiting D A/c with ₹10,000.
In summary, the above journal entries record the revaluation of assets and liabilities and the adjustment of reserves and profit & loss account to reflect the change in profit sharing ratio.
Community Answer
C and d who shared profit equally decided to share future profits in t...
Hii
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
C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.?
Question Description
C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.?.
C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.?.
Solutions for C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.? 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 C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.? defined & explained in the simplest way possible. Besides giving the explanation of
C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.?, a detailed solution for C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.? has been provided alongside types of C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.? theory, EduRev gives you an
ample number of questions to practice C and d who shared profit equally decided to share future profits in the ratio of 3 : 2 for this purpose asstes and liabilities were revalued as under (building in increase by ₹40000) (furniture and credited will decrease by ₹4000 and ₹ 2000 respectively.)( Unrecorded liability is to be recorded now at ₹6000) (the balance of general reserve was ₹40000 and profit and loss account showed a balance of ₹20000 ) pass the necessary journal entries to record the above.? 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
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup