Question

P, Q, R and
losses in the ratio of 4:3.3.2.
guaranteed by the firm that his share of
profits should
not be less than 30000
whereas R was guaranteed by P that his
Share of profit should not be less than 55000
(including interest on capital and salaries) . R
was audwed a monthly Salary of 1500
The capital Accounts of P. Q, R, and s
showed Credit balances of & 8oooo, 50000
50000 and 20000,
interest
Capital
Accounts to be allowed @ 10
p,a.



Priepare necessary account to give effect
Of this, arrangement, as suming
profit during the year being 1,58,000
​

Answer 1

Answer:

Calculation of Share of profits

P's Share -3,50,000*5/10 = 1,75,000

Q's share - 3,50,000*4/10 = 1,40,000

R's share - 3,50,000*1/10 = 35,000

R's guaranteed share is 50,000. So,the deficiency of 15,000 (50,000-35,000) is to be contributed by P and Q in the ratio of 3:2

P's contribution = 15,000*3/5=9,000

Q's contribution= 15,000*2/5 =6000

Journal entry is as follows:-

P's capital A/c    Dr 9,000

Q's capital A/c    Dr  6,000

   To R's capital A/c              15,000

(Being deficiency contributed by partners)

Explanation: