Question

Ajay, Binay and Chetan were partners sharing profits in the ratio of 3 : 3 : 2. The Partnership Deed provided for the following:
(i) Salary of ₹ 2,000 per quarter to Ajay and Binay.
(ii) Chetan was entitled to a commission of ₹ 8,000.
(iii) Binay was guaranteed a rofit of ₹ 50,000 p.a.
The profit of the firm for the year ended 31st March, 2015 was ₹ 1,50,000 which was distributed among Ajay, Binay and Chetan in the ratio of 2 : 2 : 1, without taking into consideration the provisions of Partnership Deed. Pass necessary rectifying entry for the above adjustments in the books of the firm. Show your workings clearly.

Answer 1

Answer:

Explanation:

                           JOURNALS                                                                                      

                     Particulars                                                 Debit                Credit        

              Ajays Capital                                         6400

             Binay's Capital                                       2000

                    To Chetan's Capital                                                           8400

                                                                                                                                 

                              Profit and loss Appropiate Account                                  

           Particulars                Rs                  Particulars                           Rs          

To salary                                                By Profit And loss A/c        150000

Ajay     8000

binay    8000                 16000

To Chetans capital         8000

To Profit And loss

Ajay capital A/c              45600

Binay capital A/c             50000

chetan capital A/c          30400

                                                                                                                                 

                                        150000                                                          150000