[ISC] Q. 55 Solution of Admission of Partner TS Grewal Accounts Class 12 (2023-24)
Solution to Question number 55 of the Admission of partner chapter 3 of TS Grewal Book 2023-24 Edition ISC/CISCE Board.
(a) Give the Journal entry to distribute ‘Investment Fluctuation Reserve’ of ₹ 24,000 at the time of admission of Manbir, when Investment (Market Value ₹ 1,10,000) exists at ₹ 1,20,000. The firm has two partners Sunil and Avdesh.
(b) Give the Journal entry to distribute ‘General Reserve’ of ₹ 4,800 at the time of admission of Amolak, when 20% of General Reserve is to be transferred to Investment Fluctuation Reserve. The firm has two partners Shakil and Rahman.
(c) Bush, Trump and Bill were partners sharing profits and losses in the ratio of 6 : 3 : 1. They decide to take Barak into partnership with effect from 1st April, 2023. The new profit sharing ratio among them will be 3 : 3 : 3 : 1. They also decide to record the effect of the following without affecting their book values, by passing an adjustment entry:
| General Reserve | 1,50,000 |
| Investment Fluctuation Reserve | 60,000 |
| Profit & Loss A/c (Cr.) | 90,000 |
| Advertisement Suspense A/c (Dr.) | 1,20,000 |
Pass and adjustment entry through the Partner’s Current Accounts.
Solution:-
