Question

A and B are partners in a firm sharing profits in the sale or decided to share profits in the ratio of 3 : 4 wef. April 1, 2016. On tratate teema a credit balance of 370,000 in their Profit and Loss Account Paste ned journal entry assuming that partners decide to distribute the poſts​

Answer 1

Answer:

if we distribute the profit 370,000 .

journal entries is

P&L account transfer into P&L Appropriation Account

P&L account. Dr. 370,000

to P&L Appropriation Account 370,000

distribution of profile in partners capital account

P&L Appropriation Account Dr. 370,000

to A' s Capital account. 158572

to B's Capital account. 211428

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