How to adjust general reserve Q aoo sundry Asnqs ' , 20000 A 60 000 4 30 - Accountancy - Reconstitution- Admission of a Partner

Question

How to adjust general reserve ?

Rashi Lokwani · Accepted Answer

Dear Student,

In this question, the partners do not want to change the amount of
the reserve standing in the books Therefore, an adjustment entry
will be passed to adjust the capital accounts of the partners for
general reserve
For this, we need to find out the partners; gaining and sacrificing
ratio at the time of reconstitution

Journal entry :

Date
Particulars
L f
Amount Dr
Amount Cr

01 04 2017
A's Capital a/c Dr

4000

To B's Capital a/c

4000

(Adjustment of general reserve on reconstitution of firm)

Regards

Date	Particulars	Amount Dr.	Amount Cr.
01.04.2017	A's Capital a/c Dr.	4000
	To B's Capital a/c		4000
	(Adjustment of general reserve on reconstitution of firm)