[ISC] Q. 54 Solution of Admission of Partner TS Grewal ISC 2023-24 Edition

(a) Ben, Broad and Moin are partners sharing profits and losses in the ratio of 5 : 3 : 2. They admit Rashid for 1/6th share. Following items appear in the Balance Sheet on the date of admission:

1. General Reserve ₹ 36,000;
2. Contingency Reserve ₹ 6,000;
3. Profit & Loss A/c (Cr.) ₹ 18,000;
4. Advertisement Suspense A/c (Dr.) ₹ 24,000.

Pass necessary Journal entries.

(b) Murali and Rahul were partners in a firm sharing profit in 4 : 3 ratio. On 1st April, 2023, they admitted Lokesh as a new partner. On the date of Lokesh’s admission, the Balance Sheet of Murali and Rahul showed a General Reserve of ₹ 84,000 and a debit balance of ₹ 8,400 in the ‘Profit & Loss Account’. Pass necessary Journal entries for the treatment of these items on Lokesh’s admission.

(c) Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of ₹ 72,000 at the time of admission of Zeenu, when there is no claim against it. The firm has two partners Sonia and Tina.

(d) Give the Journal entry to distribute ‘Workmen Compensation Reserve’ of ₹ 72,000 at the time of admission of Zeenat, when there is claim of ₹ 48,000 against it. The firm has two partners Karan and Diya.