Question

Mohit Rohan are sharing profit and losses in the ratio 3:2.They admit Rahul for 1/4 share with a guarantee that his share shall be at least 50000.The net loss for the year 31,March,2006 is 160000.Pass an entry for distribution of profit

Answer 1

Answer:

mohan cap a/c dr 126000

Rohan cap a/c dr 84000

To Rahul cap a/c 50000

To profit and loss a/c 160000

Explanation:

new psr is 9:6:5

Distribute of loss

A 72000

B 48000

C 40000

Distribution of Rahul loss 40000 + 50000 = 90000

A 54000

B 36000

Total profit and loss

A 126000 dr

B 84000 dr

C 50000 cr