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4.6 Double Entry Book Keeping—CBSE XII

April 1 General Reserve A/c ...Dr. 50,000
To X’s Capital A/c 20,000
To Y’s Capital A/c 20,000
To Z’s Capital A/c 10,000
(General Reserve credited to the Partners’ Capital Accounts in their
old profit-sharing ratio)
April 1 X’s Capital A/c ...Dr. 1,600
Y’s Capital A/c ...Dr. 1,600
Z’s Capital A/c ...Dr. 800
To Advertisement Suspense A/c 4,000
(Transfer of Advertisement Suspense Account to all partners in
old profit-sharing ratio)

Dr. REVALUATION ACCOUNT Cr.
Particulars ` Particulars `
To Stock A/c 10,000 By Building A/c 50,000
To Machinery A/c 26,000
To Provision for Doubtful Debts A/c 5,000
To Z’s Capital A/c (Remuneration) 5,000
To Gain (Profit) transferred to:
X’s Capital A/c (2/5) 1,600
Y’s Capital A/c (2/5) 1,600
Z’s Capital A/c (1/5) 800 4,000
50,000 50,000
Illustration 3.
Jaspal, Apoorv and Ankit are partners sharing profits and losses in the ratio of 5 : 3 : 2.
Their Balance Sheet as at 31st March, 2018 was as follows:
Liabilities ` Assets `
Sundry Creditors 1,50,000 Cash in Hand 75,000
Salaries Payable 50,000 Cash at Bank 1,50,000
General Reserve 2,00,000 Sundry Debtors 2,00,000
Capital A/cs: Stock 50,000
Jaspal 5,00,000 Land and Buildings 5,00,000
Apoorv 3,00,000 Machinery 2,00,000
Ankit 2,00,000 10,00,000 Computers 1,75,000
Furniture 50,000
14,00,000 14,00,000

Profit sharing ratio w.e.f. 1st April, 2018 was decided to be 2 : 2 : 1. It was agreed by partners
to carry out following adjustments:
(i) A computer for ` 25,000 was purchased on credit on 31st March, 2018 but was not
recorded due to oversight.
(ii) Stock is to be reduced by ` 10,000.
(iii) Provision for Doubtful Debts is to be created @ 5%.