This is a question in one of the chapter tests. Can you please explain how to do it step by step. Also the answer of Q7 in the same test is marked wrong. --
Use the following information to answer the next question.
P, Q and R were partners in a firm sharing profits and losses in the ratio of 2:2:1. With effect from 1st April, they decided to share profits and losses equally. On this date, the following balances appear in Balance Sheet.
Taxation Reserve Rs 30,000; General Reserve Rs 12,000; Advertisement Suspense A/c Rs 25,000.
Goodwill at the time of reconstitution was valued at Rs 49,000.
However, partners decided to show the values at unaltered figures in the Reconstituted Balance Sheet.
Which of the following Journal entries can be passed as a single adjustment entry to show the net effect.
P’s Capital A/c Dr. 1,200
Q’s Capital A/c Dr. 1,200
To R's Capital A/c 2,400
R's Capital A/c Dr. 8,800
To P’s Capital A/c 4,400
To Q’s Capital A/c 4,400
R's Capital A/c Dr. 2,400
To P’s Capital A/c 1,200
To Q’s Capital A/c 1,200
P’s Capital A/c Dr. 4,400
Q’s Capital A/c Dr. 4,400
To R's Capital A/c 8,800
Dear Student,
The answer to Question-7 is: Option-B.
As you can see, the explanation provided is correct. There is a typing mistake which will soon be rectified and updated on our website. Thank you for bringing the error to our notice.
The explanation for the question provided by you is given below:
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The answer to Question-7 is: Option-B.
As you can see, the explanation provided is correct. There is a typing mistake which will soon be rectified and updated on our website. Thank you for bringing the error to our notice.
The explanation for the question provided by you is given below:
In case you face any difficulty, you can always get back to us.
Keep posting!!