General Reserve of ₹ 24,000 and Profit and Loss Account (Debit Balan

1.	General Reserve of ₹ 24,000 and Profit and Loss Account (Debit Balance) of ₹ 6,000 appearing in the balance sheet of partner’s P and Q on the admission of R is to be adjusted. Give the journal entries assuming that P and Q are equal partners.
Answer» i) General reserve a/c Dr 24,000 P’s capital a/c Q’s capital a/c ii) P’s capital a/c Dr 3000 Q’s capital a/c Dr 3000 To P/L a/c

General Reserve of ₹ 24,000 and Profit and Loss Account (Debit Balance) of ₹ 6,000 appearing in the balance sheet of partner’s P and Q on the admission of R is to be adjusted. Give the journal entries assuming that P and Q are equal partners.

Answer»

i) General reserve a/c Dr 24,000

P’s capital a/c Q’s capital a/c

ii) P’s capital a/c Dr 3000

Q’s capital a/c Dr 3000 To P/L a/c