Question

90. The partners of a firm, Alia, Bhanu and Chand distributed the profits for the year ended 31st March, 2017.
*80,000 in the ratio of 3:3:2 without providing for the following adjustments:
(a) Alia and Chand were entitled to a salary of 1,500 each per month.
(b) Bhanu was entitled for a commission of 4,000.
(c) Bhanu and Chand had guaranteed a minimum profit of 35,000 p.a to Alia any deficiency to borne
equally by Bhanu and Chand.
Pass the necessary Journal entry for the above adjustments in the books of the firm. Show workings clearly.

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Answer 1

Answer:

Explanation:

Journals

Alia capital          30000

Bhanu capital      30000

Chand Capital      20000

  To Profit & loss Adjustment A/C       80000

Profit & loss adjustment A/c   84000

 To Alia capital A/c                                               18000

  To Bhanu capital A/c                                           48000

   to Chand capital A/c                                            18000

Alia capital A/c                              1500

Bhanu capital a/c                           1500

chand capital A/c                           1000

   To profit & loss adjustment a/c                       4000