Question

Pinki, Deepati and Kaku are partner’s sharing profits in the ratio of 5:4:1. Kaku is given a guarantee that his share of profits in any given year would not be less than Rs 5,000. Deficiency, if any, would be borne by Pinki and Deepti equally. Profits for the year amounted to Rs 40,000. Record necessary journal entries in the books of the firm showing the distribution of profit.

Answer 1

Explanation:

Pinki ,deepati and kuku are partners sharing profits in the ratio of 5:4:1. kaku is given a guarantee that his share of profit in given year would not be less than rupees 5000. deficiency if any would be borne by pinki and deepati equally . profit for the year amounted to rupees 40000.