Q. 43. A, B, C and D are partners sharing profits in 2:2:1:1. They distributed profit for the year ending 31st March 2020, 9,00,000 without providing for the owing: (1) Salary to A @ 15,000 per month. (ii) Salary to B and D @ 30,000 per quarter to each partner. calculate please answer asap thank you!
Answers
first taken back the profit
9,00,000 in 2:2:1:1
details A B C D firm
profit (3 laks) (3 laks) (1.5 laks) (1.5 laks) 9 laks
see whenever we are taking back profit the capital of partners may decrease so here we placed under bracket means negative
secondly give the remuneration that means salary to partners
details A B C D firm
profit (3 laks) (3 laks) (1.5 laks) (1.5 laks) 9 laks
salary 1.8 laks 1.2 laks 1.2 laks (420) laks
now when the firm gives salary to partners the profit of the firm may decrease so we placed the total salary in bracket under the coloumn of firm
now the divisible profit has to be distributed amongst partners
details A B C D firm
profit (3 laks) (3 laks) (1.5 laks) (1.5 laks) 9 laks
salary 1.8 laks 1.2 laks 1.2 laks (420) laks
profit 1.6 laks 1.6 laks 80 ths 80 ths (480) laks
net effect 40ths (20) ths (70) ths 50 ths nil
whoever's net effect is in negative just debit and vice versa
B's capital account.... Dr. 20,000
C's capital account.... Dr. 70,000
to A's capital account 40,000
to D's capital account 50,000