Question

On 1st april 2015 capitals of A . B.wew 400000nd 200000 respectively. They diveded profit in yhier capital ratioo.profit of the year ended were 300000 which have been duly distributedamong the partners..but following not passed in books. Intrest on capital 12% p.a Intrest on drawings A 12000 B 10000 Commosion to B 20000a secial transection Ais to be paid a salary of 50000 Rectify the error ..nd pass journal entries

Answer 1

The journal entry would be

Profit and loss a/c dr. 300,000

To A's a/c 203,333

To B/s a/c 96,667

(being profit distributed and rectified entry passed)

Working Note :

Profit 3,00,000

Less:

Interest on Capital (72000)

(600,000*.12)

B's Commission (20000)

A's Salary (50000)

------------------ -------------

Profit available 158000

for distribution

In 2:1

A- 105,333

B- 52,667

Answer 2

Explanation:

please refer to attachment

hope it helped