Anamika, Barkha & Chanchal are partners in a partnership firm sharing profits & losses in the ratio of 3:2:1. Barkha retires on 1st April, 2025. After making all adjustments related to revaluation of the assets and liabilities, goodwill and accumulated profits & losses etc., the capital accounts of Anamika & Chanchal showed a credit balance of Rs. 1,60,000 and Rs. 80,000 respectively. Further, it was also revealed that they didn't distribute general reserves amounting to Rs 60,000. For recording general reserve, what needs to be done with Anamika's capital?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Anamika’s Capital will be debited with Rs. 15,000
The general reserve belongs to all three partners in their old ratio. If it is not distributed and stays in the books, Barkha must still be paid her share of it. The partners who keep the reserve, Anamika and Chanchal, pay her that share in their gaining ratio, by an entry through their capital accounts.
Barkha's share of the reserve = Rs. 60,000 × 2/6 = Rs. 20,000
No new ratio is given, so Anamika and Chanchal continue in 3:1, and their gaining ratio is also 3:1
Anamika bears Rs. 20,000 × 3/4 = Rs. 15,000 (debit)
Chanchal bears Rs. 20,000 × 1/4 = Rs. 5,000 (debit)
The entry is Anamika's Capital A/c Dr. Rs. 15,000 and Chanchal's Capital A/c Dr. Rs. 5,000, To Barkha's Capital A/c Rs. 20,000. Anamika's capital is debited, not credited, because she is the one paying Barkha for the reserve she now keeps.
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
