Question

xyz earned a profit of 275000 during the year ending on 31 .03.09.10% of profit was to be transferred to general reserve

Answer 1

Transfer to reserve = 2,75,000×10/100

=27,500

Net profit = 2,75,000 - 27,500

= 2,47,500

Net profit will be distribute between XYZ in a equal proportion

X=2,47,500×1/3 = 82,500

Y=2,47,500×1/3 = 82,500

Z=2,47,500×1/3 = 82,500

Profit and loss (credit) a/c Dr. 2,47,500

To X's capital a/c. 82,500

To Y's capital a/c. 82,500

To Z's capital a/c. 82,500

( Being the profit distribute between partners)

Answer 2

Explanation:

answer for the given question

hence entry passed