[ISC] Q. 59 Solution of Admission of Partner TS Grewal Accounts Class 12 (2023-24)
Solution to Question number 59 of the Admission of partner chapter 3 of TS Grewal Book 2023-24 Edition ISC/CISCE Board.
Pawan, Sharman and Karman are in partnership sharing profit and losses in the ratio of 6 : 3 : 1. They admit Arjun into partnership with effect from 1st April, 2023. New profit sharing ratio among the partners will be 3 : 3 : 3 : 1. They also decide to record the effect of the following without affecting their book values (after the required adjustment from Workmen Compensation Reserve and Investment Fluctuation Reserve) by passing an adjustment entry:
| General Reserve | 2,40,000 |
| Contingency Reserve | 40,000 |
| Profit & Loss A/c (Cr.) | 1,20,000 |
| Advertisement Suspense A/c (Dr.) | 1,00,000 |
| Workmen Compenation Reserve | 40,000 |
| Investment Fluctuation Reserve | 20,000 |
Additional Information:
(i) Claim on account of Workmen Compensation is ₹ 20,000.
(ii) Book value of investment is ₹ 1,00,000 (Market Value ₹ 90,000)
Pass the necessary adjustment entry.
Solution:-
