1.

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. The following was the Balance Sheet of the firm as on 31.3.2010 Capital and LiabilitiesRsAssetsRsCapitals: A60,000Sundry Assets80,000 B20,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯80,000––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯80,000–––––––– The profit Rs 30,000 for the year ended 31.3.2010 were divided between the partners without allowing interest on capital at 12% p.a. and salary to A at Rs 1,000 per month, During the year A withdrew Rs 10,000 and B Rs 20,000. Pass the necessary adjustment journal entry and show your working clearly.

Answer»

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. The following was the Balance Sheet of the firm as on 31.3.2010

Capital and LiabilitiesRsAssetsRsCapitals: A60,000Sundry Assets80,000 B20,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯80,000––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯80,000––––––

The profit Rs 30,000 for the year ended 31.3.2010 were divided between the partners without allowing interest on capital at 12% p.a. and salary to A at Rs 1,000 per month, During the year A withdrew Rs 10,000 and B Rs 20,000.

Pass the necessary adjustment journal entry and show your working clearly.



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