Question

Oviya and Kavya are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admit Agalya into the partnership. Their balance sheet as on 31^st March, 2019 is as follows:

Balance Sheet as on 31^st March 2019

Liabilities	₹	₹	Assets	₹
Capital accounts:			Buildings	40,000
Oviya	50,000		Plant	50,000
Kavya	40,000	90,000	Furniture	30,000
Profit and loss appropriation A/c		40,000	Debtors	20,000
General reserve		8,000	Stock	10,000
Workmen’s compensation fund		12,000	Cash	20,000
Sundry creditors		20,000
		1,70,000		1,70,000

Pass journal entry to transfer the accumulated profits and reserve on admission.

Answer 1

Date	Particulars	L.F.	Debit ₹	Credit ₹
	Profit and loss appropriation A/c .......Dr. General Reserve A/c .......................Dr. Workmen's Compensation Fund A/c ..............Dr. To Oviya Capital A/c To Kavya Capital A/c (Undistributed profit distributed to old partners old ratio)		40,000 8,000 12,000 - -	- - - 37,500 22,500