what will be the accounting treatment for Advertisement suspense a/c Rs.15000 on retirement of Arnav, in the partnership from Arnav,Karnav and Gaurav sharing profits and losses in the ratio of 2:2:1, when the continuing partners decide to carry forward the profits/losses in the new Balance sheet of the firm. pls guide me for this question. Thank you
Vaishali, as we know, when profits/losses are to be shown in the New Balance Sheet of the firm, then adjusting entry is to be passed. Since, Advertisement Suspense A/c is loss for the firm, thus the reverse entry should be passed i.e. (Dr. Sacrificing Partner and Cr. Gaining Partner).
Moreover, in case of retirement of a partner, there is no such case. It exist only in case of Reconstitution due to Change in Profit Sharing Ratio among the partners.
Thus, we advise you re-check your query. If you find any difficulty, then do get back to us. We will help you in the best possible way.
Moreover, in case of retirement of a partner, there is no such case. It exist only in case of Reconstitution due to Change in Profit Sharing Ratio among the partners.
Thus, we advise you re-check your query. If you find any difficulty, then do get back to us. We will help you in the best possible way.