Question 87 Chapter 2 of Class 12 Part – 1
87. The partners of a firm distributed the profits for the year ended 31st March, 2016, Rs. 1,20,000 in the ratio of 2:2:1 without providing for the following adjustments:
(i) A and B were entitled to a salary of Rs. 1,500 each per quarter.
(ii)C was entitled to a commission of Rs. 6,000.
(iii) A and C had guaranteed a minimum profit of Rs. 48,000 p.a. to B.
(iv) Profits were to be shared in the ratio of 4:3:2
Pass necessary adjustment entry for the above adjustments in the books of the firm.
The solution of Question 87 Chapter 2 of Class 12 Part – 1: –
|C Rs.||Total Rs.|
|Profit Guaranteed to B (Cr.)||–||48,000||–||48,000|
|Remaining Profit , will be divided between A and C in ratio 4:2 (Cr.)||36,000||–||18,000||54,000|
|Less: Profit already distributed|
|(1,20,000 in 2:2:1) (Dr.)||48,000||48,000||24,000||1,20,000|
|Net Effect||( Dr.) 6,000||(Cr.) 6,000||NIL||NIL|
Adjustment Journal Entry
|Date||Particular||L . F
||Dr. ₹||Cr. ₹|
|A’s Capital A/c||Dr.||6,000|
|To B’s Capital A/c||6,000|
|(Being adjustment entry made )|
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Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution