Question

Dheena, Surya, and Jankai are partners sharing profits and losses in the ratio of 5:3:2. on 31.3.2018, Dheena retired. On the date of retirement, the books of the firm showed a reserve fund of ₹ 50,000. The pass journal entry to transfer the reserve fund.

Answer 1

Date	Particulars	L.F.	Debit	Credit
31.03.2018	Reserve Fund A/c     ...Dr.		50,000
	To Dheena's Capital A/c			25,000
	To Surya's Capital A/c			15,000
	To Janaki's Capital A/c			10,000
	(Being reserve fund transferred to partners’ capital accounts in their old ratio)

Given Data:

• Partners: Dheena, Surya, and Jankai
• Profit-sharing ratio: 5:3:2
• Reserve Fund: ₹ 50,000
• Since the reserve belongs to all partners, it will be distributed among them in their old profit-sharing ratio.

Calculation of Share in Reserve Fund:

• Dheena’s share = `₹ 50,000 × (5/10) =  ₹ 25,000`
• Surya’s share = `₹ 50,000 × (3/10) =  ₹ 15,000`
• Jankai’s share = `₹ 50,000 × (2/10) =  ₹ 10,000`