What is the treatment of JLP reserve in case of dissolution if there is no JLP account on asset side

Please mention reason for the treatment also..........

asked Nov 18, 2015 in Partnership-Dissolution of a Partnership Firm by daksh gupta (25 points) 933 views

1 Answer

0 votes
Normally, if there is JLP Reserve in the Balance Sheet, then there is also JLP on the Asset side of the Balance Sheet.  If this is not the case and there is only JLP Reserve in Balance Sheet, then it will be credited to all the partners' capital accounts in their profit sharing ratio.  The journal entry for that will be:

JLP Reserve A/c   Dr.

  To Capital A/cs of all Partners
answered Nov 19, 2015 by jbsclasses (3,971 points)
Thank You! Sir.
It is my pleasure.