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accordind to a question,15% othe General Reserve is to remain as a provision against doubtful debts( General Reserve - Rs.10,000).How to do it?

This is very simple. First let us understand its meaning. The question says directly and indirectly that 15% percent of general reserve ( which is 15/100 x 10,000 = 1500) is to be made as a provision for doubtful debts and the rest of the 85% that is 8500 is to be distributed among old partners in their old ratio. The journal entry will be:

General Reseve A/c ........................... Dr. 10,000

to provision for doubtful debts a/c 1500

to old parners capital accounts a/c 8500

This amount can also be given through current accounts but it will always be given in old ratio.

I hope your doubts are solved. If you are still not clear, write to me at harjassinghgulati@yahoo.co.in

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This is very simple. First let us understand its meaning. The question says directly and indirectly that 15% percent of general reserve (1500) is to be made as a provision for doubtful debts and the rest of the 85% that is 8500 is to be distributed among old partners in their old ratio. The journal entry will be: General Reseve A/c ........................... Dr. 10,000 to provision for doubtful debts a/c 1500 to old parners capital accounts a/c 8500 This amount can also be given through current accounts but it will always be given in old ratio.
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