Question 57 Chapter 2 of +2-A
57. Reya, Mona and Nisha shared profits in the ratio of 3: 2: 1. The profits for the last three year were 1,40,000; 84,000 and 1,06,000 respectively. These profits were by mistake shared equally for all the give necessary Journal entry for the same.
The solution of Question 57 Chapter 2 of +2-A:
| Date | Particulars |
L.F. | Debit | Credit | |
| Nisha’s Capital A/c | Dr | 55,000 | |||
| To Reya’s Capital A/c | 55,000 | ||||
| (Being adjustment made for wrongly distributed profits) | |||||
Working Note: –
| Statement Showing Adjustment of Profit required |
||||
| Particulars | Reya | Mona |
Nisha |
Total |
| Actual Distribution of Profit (3:2:1) | 1,65,000 | 1,10,000 | 55,000 | 3,30,000 |
| Wrong Distribution of Profit (1:1:1) | 1,10,000 | 1,10,000 | 1,10,000 | 3,30,000 |
| 55,000 | – | 55,000 | – | |
Reya gets less amount, so we have to credit his capital a/c with the amount of Difference.
Nisha gets extra so we have to debit his capital a/c with the amount of Difference.
Calculation of share of profit of Reya’s, Mona’s, & Nisha’s
Net Profit = 1,40,000 + 84,000 + 1,06,000 = 3,30,000
Actual Distribution of profit in the ratio of 3:2:1
| Profit share of Reya | = | 3,30,000 X 3/6 |
| Profit share of Reya | = | 1,65,000/- |
| Profit share of Mona | = | 3,30,000 X 2/6 |
| Profit share of Mona | = | 1,10,000/- |
| Profit share of Nisha | = | 3,30,000 X 1/6 |
| Profit share of Nisha | = | 55,000/- |
Wrong Distribution of profit in the ratio of 1:1:1
*5: -Calculation of share of profit of X’s & Y’s
Net Profit after interest & Salary = 2,11,250
Distribution of first Rs 1,75,000 in the Capital Ratio 2,00,000 : 1,50,000 i.e. 4 : 3
| Profit share of Reya | = | 3,30,000 X 1/3 |
| Profit share of Reya | = | 1,10,000/- |
| Profit share of Mona | = | 3,30,000 X 1/3 |
| Profit share of Mona | = | 1,10,000/- |
| Profit share of Nisha | = | 3,30,000 X 1/3 |
| Profit share of Nisha | = | 1,10,000/- |
Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Advertisement-X
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
