Question

Profit of the partnership firm of Sheela, Surbhi and Sanket is * 1,35,000. They have shared
profit in the ratio 2:1:3 instead of 3:2:3. What accounting treatment is to be given to
the capital account to rectify this error ? - Accounts question​

Answer 1

Explanation:

Find out the wrong profit distribution, then find the correct profit distribution, then find the difference between them. At last, rectify with adjustment journal entries, cr balance for positive and Dr balance for negative