(Adjustment of accumulated profit and reserves) A, B and Care partners sharing profit and losses in the ratio of 2:2: 1B retires from the firm on 31" March 2015. On the date of B's retirement, the following balances appeared in the books Of the firm: Profit & Loss A/c 50,000 General Reserve 30,000 Workmen's Compensation Reserve 40,000 Deferred Revenue Expenditure 30,000 Pass the necessary journal entries for the adjustment of these items on B's retirement
(Adjustment of accumulated profit and reserves) A, B and Care partners sharing profit and losses in the ratio of 2:2: 1B retires from the firm on 31" March 2015. On the date of B's retirement, the following balances appeared in the books Of the firm: Profit & Loss A/c 50,000 General Reserve 30,000 Workmen's Compensation Reserve 40,000 Deferred Revenue Expenditure 30,000 Pass the necessary journal entries for the adjustment of these items on B's retirement
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 3PA
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![(Adjustment of accumulated profit and reserves)
A, B and Care partners sharing profit and losses in the ratio of 2:2:1. B retires from the firm on 31"
March 2015. On the date of B's retirement, the following balances appeared in the books Of the firm:
Profit & Loss A/c
50,000
General Reserve
30,000
Workmen's Compensation Reserve 40,000
Deferred Revenue Expenditure
30,000
Pass the necessary journal entries for the adjustment of these items on B's retirement](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1107f528-7e04-4111-bd5c-ae95debdc45c%2F9113cc8d-4029-4ad2-8a24-6c9a8410d4e8%2Ft9z0my_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(Adjustment of accumulated profit and reserves)
A, B and Care partners sharing profit and losses in the ratio of 2:2:1. B retires from the firm on 31"
March 2015. On the date of B's retirement, the following balances appeared in the books Of the firm:
Profit & Loss A/c
50,000
General Reserve
30,000
Workmen's Compensation Reserve 40,000
Deferred Revenue Expenditure
30,000
Pass the necessary journal entries for the adjustment of these items on B's retirement
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