Partnership accounts
This query is : Resolved
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
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
28 May 2012
profit will be shared in equal ratio among the partners if nothing is mentioned regarding profit sharing ratio in the dedd.
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.
A`s CAPITAL A/C......Dr 1200
B`s CAPITAL A/C......Dr 1200
TO C`s CAPITAL A/C 2400.
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)
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)
29 May 2012
thanks sir.
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