Question

Akash, Mugesh and Sanjay are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their balance sheet as on 31st March, 2017 is as follows:

Liabilities	₹	₹	Assets	₹
Capital accounts:		1,30,000	Buildings	1,10,000
Akash	40,000		Vehicle	30,000
Mugesh	60,000		Stock in trade	26,000
Sanjay	30,000		Debtors	25,000
Profit and loss appropriation A/c		12,000	Cash in hand	15,000
General reserve		24,000
Workmen compensation fund		18,000
Bills payable		22,000
		2,06,000		2,06,000

Pass journal entry to transfer accumulated Profit and prepare the capital account of the partners.

Answer 1

Particulars	Dr.	Cr.
Profit and loss appropriation A/c General Reserve A/c Workmen Compensation A/c      To Akash Capital A/c      To Mugesh Capital A/c      To Sanjay Capital A/c (Undistributed profit transfer to Capital)	12,000 24,000 18,000	27,000 18,000 9,000

 

Dr.	Capital Account						Cr.
Particulars	Akash ₹	Mugesh ₹	Sanjay ₹	Particulars	Akash ₹	Mugesh ₹	Sanjay ₹
To Balance c/d	67,000	78,000	39,000	By Balance b/d	40,000	60,000	30,000
				By Undistributed Profit	27,000	18,000	9,000
	67,000	78,000	39,000		67,000	78,000	39,000

Working note:

`54,000 xx 3/6 = 27,000`

`54,000 xx 2/6 = 18,000`

`54,000 xx 1/6 = 9,000`