The firm with X, Y and Z as partners earned a profit of ₹ 3,00,000 during the year ended 31st March, 2011. 20% of this profit was to be transferred to General Reserve. Pass the necessary Journal entry for the same.
The firm with X, Y, and Z as partners earned a profit of ₹ 3,00,000 during the year ended 31st March 2011. 20% of this profit was to be transferred to General Reserve. Pass the necessary Journal entry for the same.
Anurag Pathak Changed status to publish April 9, 2023
Solution:-
| Date | Particulars | Dr. (₹) | |
| March 31 | Profit and Loss Appropriation A/c …Dr.
To General Reserve A/c (Being 20% of the profit transferred to the General Reserve) |
60,000
|
60,000 |
Anurag Pathak Changed status to publish April 9, 2023
