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LoginThe partners of a firm, Aia , Bhanu and Chand distributed the profits for the year ended 3 1st March, 2017, Rs 80,000 in the ration of 3 : 3 : 2without providing for the following adjustments :
(a) Alia and Chand were entitled to a salary of .Rs 1,500 each per month.
(b) Bhanu was entitled for a commission of Rs. 4,000.
(c ) Bhanu and CHand guaranteed a minimum profits of .Rs 35,000 p.a to Alia any deficiency to bonrne equally by Bhanu and Chand.
Pass the necessaryJournal entry for the above adjusments in the books of the firm . Show workings clearly.
Class 12 Accounts in Class 12 3 years ago
Working Note (1)
Profit REMAINING after allowing salary and commission will be :
` "Rs " 80,000 - " Rs " 36,000 - " Rs " 4,000 = " Rs " 40,000 `
`" ALIA's Share " = 3/8 XX 40,000 = ."Rs " 15,000`
` " Guaranteed amount to Alia " = ".Rs "35,000`
Deficiency of .Rs 20,000 ( i.e., .Rs 35,000- .Rs 15,000) will be shared EQUALLY i.e., 10,000 each by Bhanu and Chand .
` " Bhanu 's share " = 3/8 xx 40,000 = ."Rs "15,000 - ." Rs " 10,000 = ."Rs "5,000`
` " Chand 's share " = 2/8 xx 40,000 = ."Rs "10,000 - ."Rs "10,000 = Nil`
Posted on 04 Dec 2021, this text provides information on Class 12 related to Accounts in Class 12. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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