Partnership accounts

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Rahul Walame (Querist)

28 May 2012 A, B & C were partners in a firm. For financial year 2008-09 the profits were Rs.18,000. The partners shared
the profits in the ratio of 2:2:1. There is no partnership deed of the firm in this regard. The adjustment entry
will be ___
a) P & L Adjustment A/c Dr. 18,000 b) P & L Adjustment A/c Dr. 18,000
To A’s Capital A/c 7,200 To A’s Capital A/c 6,000
To B‘s Capital A/c 7,200 To B’s Capital A/c 6,000
To C‘s Capital A/c 3,600 To C’s Capital A/c 6,000
c) A’s Capital A/c Dr.1,200
B’s Capital A/c Dr.1,200
To C Capital A/c 2,400 d) None of these

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)

28 May 2012 profit will be shared in equal ratio among the partners if nothing is mentioned regarding profit sharing ratio in the dedd.

Rahul Walame

Rahul Walame (Querist)

28 May 2012 SIR THIS Q WAS ASKED IN CPT JUNE 2010 EXAM AND THE ANSWER IS GIVEN AS

A`s CAPITAL A/C......Dr 1200
B`s CAPITAL A/C......Dr 1200
TO C`s CAPITAL A/C 2400.

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)

28 May 2012 yes thats right....

Profit had to be shared equally but it has been shared in the ratio of 2:2:1, i.e.,
Profit sharing should have been:
A-6000
B-6000
C-6000

But shared as:
A-7200
B-7200
C-3600

Accordingly the adjustment entry will be:

A 1200 (72000-6000)....Dr
B 1200 (7200-6000).....Dr
To C 2400 (3600-6000)

Rahul Walame

Rahul Walame (Querist)

29 May 2012 thanks sir.

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