Please Help: patnership
Posted Date : 03-Dec-2011 , 10:14:53 am | Posted By Puran Chand
A, B & C were partners in a firm. For financial year 2008-09 the profits were Rs.18,000. The partners shared
the profits in the ratio of 2:2:1. There is no partnership deed of the firm in this regard. The adjustment entry
will be
the profits in the ratio of 2:2:1. There is no partnership deed of the firm in this regard. The adjustment entry
will be
Category : Accounts | Answers : 1 | Comments : 3 | Hits : 370
Answers
Answer By: CA VIPIN GARG
Dear Puran the answer will be C only because of the following :-
If there is no partnership deed then partners should have shared the profit equally and according to which each partner should have been credited by Rs. 6000 but that was not the case so to rectify the same we have to made the adjustment entry as follows :-
A's Capital A/c ...Dr. 1200 ((because earlier credited by Rs. 7200 (18000/5*2))
B's Capital A/c ...Dr. 1200 ((because earlier credited by Rs. 7200 (18000/5*2))
TO C's Capital A/C ......2400 ((because earlier credited by only Rs. 3600 (18000/5*1))
The above entry will result in net credit of Rs. 6000 in each one's capital account.
Hope you got the answere you are looking for, have a nice day Puran........
If there is no partnership deed then partners should have shared the profit equally and according to which each partner should have been credited by Rs. 6000 but that was not the case so to rectify the same we have to made the adjustment entry as follows :-
A's Capital A/c ...Dr. 1200 ((because earlier credited by Rs. 7200 (18000/5*2))
B's Capital A/c ...Dr. 1200 ((because earlier credited by Rs. 7200 (18000/5*2))
TO C's Capital A/C ......2400 ((because earlier credited by only Rs. 3600 (18000/5*1))
The above entry will result in net credit of Rs. 6000 in each one's capital account.
Hope you got the answere you are looking for, have a nice day Puran........
Comments
Puran Chand
03-Dec-2011 , 10:21:07 ama) P & L Adjustment A/c Dr. 18,000 b) P & L Adjustment A/c Dr. 18,000 To A’s Capital A/c 7,200 To A’s Capital A/c 6,000 To B‘s Capital A/c 7,200 To B’s Capital A/c 6,000 To C‘s Capital A/c 3,600 To C’s Capital A/c 6,000 c) A’s Capital A/c Dr.1,200 B’s Capital A/c Dr.1,200 To C Capital A/c 2,400 d) None of these Answer is "C" any one explain pls
Puran Chand
03-Dec-2011 , 11:09:38 ama) P & L Adjustment A/c Dr. 18,000 b) P & L Adjustment A/c Dr. 18,000 To A’s Capital A/c 7,200 To A’s Capital A/c 6,000 To B‘s Capital A/c 7,200 To B’s Capital A/c 6,000 To C‘s Capital A/c 3,600 To C’s Capital A/c 6,000 c) A’s Capital A/c Dr.1,200 B’s Capital A/c Dr.1,200 To C Capital A/c 2,400 d) None of these Answer is "C" any one explain pls
Puran Chand
03-Dec-2011 , 02:25:45 pmThinking You Very Much Sir...........................................I Got