Adjustment Entry for Reserves, Accumulated Profits & Losses | Class 12 | Accounts | Part 11

📘 Confused about how to do adjustment of reserves and accumulated profits and losses through capital account? Don’t worry — this video will make it crystal clear!

Adjustment Entry for Reserves, Accumulated Profits & Losses | Class 12 | Accounts | Part 11

🎓 Lecture 48 – Adjustment of Reserves and Accumulated Profits and Losses through Partner’s Capital Accounts | T.S. Grewal Vol 1 | Class 12 Accounts

This video is made especially for Class 12 Commerce students who are learning Partnership Accounts as per the CBSE syllabus. In this lecture, I have explained one of the most important topics — adjustment of reserves and accumulated profits and losses through capital account — in a very simple and easy-to-understand manner.

In this session, we’ll deeply understand how adjustment of reserves and accumulated profits and losses is done when profit-sharing ratio changes. Students often find this confusing, but I have broken down every concept step by step so you can master the adjustment of reserves and accumulated profits with full clarity.

💡 You will learn how to pass journal entries for the treatment of reserves and accumulated profits and losses, how these are adjusted among old partners, and how they affect the partner’s capital accounts. This concept forms the foundation of all future topics like adjustment of reserves and accumulated profits and losses during admission, retirement, or death of a partner. In this topic we understand the way to perform single entry instead of multiple entries in capital account during change in psr.

📘 Topics covered in this video include:
✅ Meaning and need for adjustment of reserves and accumulated profits and losses through capital account
✅ Step-by-step explanation of adjustment of accumulated profits and reserves
✅ Concept of accounting of reserves accumulated profits and losses in partnership
✅ Adjustment for reserve and accumulated profits and losses when the profit-sharing ratio changes
✅ Adjustment for accumulated profits and losses at the time of admission or retirement
✅ Understanding accumulated profits and losses in partnership accounts
✅ Solved illustrations from T.S. Grewal Volume 1 (Questions 16 to 19)
✅ Real examination-oriented questions and short-cut methods to solve them

📊 In this lecture, I have also explained the adjustment of reserves and accumulated profit retirement in detail, showing how existing partners’ capital accounts are affected when one partner retires. You will also learn the treatment of reserves and accumulated profits in case of change in profit-sharing ratio.

I have used simple examples and clear explanations so that you can easily understand the adjustment for reserves and accumulated profit and apply the same in journal entries, ledger accounts, and balance-sheet adjustments.

💬 Whether you’re a beginner or revising for your board exams, this lecture will help you build a strong conceptual base in adjustment of reserves and accumulated profits and losses through capital account and related topics.

🧾 By the end of this lecture, you’ll be able to:

Pass all journal entries related to adjustment of reserves and accumulated profits and losses

Show proper treatment in partner’s capital accounts

Understand the logic behind adjustment for reserve and accumulated profits and losses

Solve any question from T.S. Grewal Volume 1 Illustrations 16 to 19

📚 This topic is extremely important for CBSE Class 12 Board Exams and will also help you in understanding the fundamentals of partnership accounting.

Watch this lecture till the end to fully understand how to handle adjustment of reserves and accumulated profits and losses, how accumulated profits and losses in partnership accounts are treated, and how partners’ capital accounts are adjusted in a logical and accurate way.

If you find the video helpful, don’t forget to LIKE, SHARE, and SUBSCRIBE to the channel for more such detailed lectures on Class 12 Accountancy (T.S. Grewal Volume 1 & 2).
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