Question

A, B and C were partners sharing profit in the ratio of 3:3:2. The partnership deed provided
the following:
(i) Salary 4,000 per quarter to A and B
(ii) C was entitled to a commission of 16,000
(ii) B was guaranteed a profit of 1,00,000 p.a.
The profit for the year ended 31st March, 2018 was 3,00,000 which was distributed among AB
and C in the ratio of 2:2:1 without taking into consideration the provision of partnership deed
Pass necessary rectifying journal entry for the above adjustments in the books of the firm. Show
your working clearly.
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Answer 1

Answer:

ii) C was entitled to a commission of 16,000