X,y'and z share profits in the ratio of 4:3:2.z is given a guaranteed that his share of profit will not be less than rupees 75000 deficiency if any would be borne by x and y equally firms profit was rupees 270000 it's share of profit will be
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Share of profit
A- 40,000*5/10= 20,000
B-40,000*4/10=16,000
C-40,000*1/10=4000
C's share is less by 1000. So,the deficiency will be borne by A and B equally.
Journal entry for the same will be :
A's capital A/c Dr. 500
B's capital A/c Dr. 500
To C's capital A/c 1000
(Being deficiency contributed)
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