Question

14.
The Firm of A, B & Cearned a profit of 20,000 during the year, which was distributed among the partners in the
ratio of 2:1:1, whereas it should be in the ratio of 1:2:2. Give Journal entry for rectification.
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Answer 1

A’s Capital A/c Dr. 6,000

To B’s Capital A/c 3,000

To C’s Capital A/c 3,000

(To profit wrongly distributed now rectified.)