Question 57 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 57 Chapter 2 of +2-A

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

:

DateParticulars
L.F.DebitCredit
 Nisha’s Capital A/cDr 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
ParticularsReyaMona
Nisha
Total
Actual Distribution of Profit (3:2:1)1,65,0001,10,00055,0003,30,000
Wrong Distribution of Profit (1:1:1)1,10,0001,10,0001,10,0003,30,000
 55,00055,000
 Reya get less amount, so we have to credit his capital a/c with difference amount Nisha get extra so we have to debit his capital a/c with difference amount 
     

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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 57 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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