partnership accounts doubt

hi friends

          
PROBLEM

      M and S are partners sharing profits in the proportion of 2/3 and 1/3. Their Balance Sheet as at 31-3-1985, stands as under.

LIABILITIES                                                         ASSETS

Sundry creditors               44000                        Cash at Bank                      17000
                                                                           Sundry Debtors                  15000
Capital Account                                                  Bills Receivable                     4000
M                                      30000                        Stock                                   25000
S                                       20000                        Furniture and fixtures          3000
                                                                           Land and Buildings              30000

                                         94000                                                                   94000

R is admitted to partnership with effect from 1st april on the following terms :


1.    That there is likely to be a claim against the firm for damages for which a provision to the extent of  
       Rs.1,500 is to be made;
2.  That a bill for Rs.300 for electric charges has been omitted to be accounted.  It should, therefore,  
      now be provided for;


i want to this two adjustment journal entry.   i have confussion of this two adjustments.  please help me.


bye
krishna
Replies (4)
adjusted profit and loss a/c  1800

  to claims for damages a/c   1500
  to electricy bill             a/c   300



old partners capitals a/c dr

to adjusted profit and loss a/c

hope it will clear ur confussion, if still u have any doubt ,dont feel bad to ask me, bye
dear reddy what will be the nature of thegroup of  two ledger - claims for damages and electricity bill ?

Sir

what is the entry for Provision for bad debts?

What is the entry for passing the

 

 

Ramkrishna

the electricity bill will be Dr. to P& l a/c & Provision for damages shown in Liability side in provisions

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