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R and M were partners in a firm sharing profits in the ratio of 7:5. Their respective fixed capitals were R Rs 10,00,000 and M Rs 7,00,000. The partnership deed provided for the following : (i) Interest on capital 12% p.a. (ii) R's salary Rs 6,000 per month and M's salary Rs 60,000 per year. The profit for the year ended 31-03-2007 was Rs 5,04,000 which was distributed in 3:2 without providing for the above. Pass an Adjustment entry. |
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Answer» R and M were partners in a firm sharing profits in the ratio of 7:5. Their respective fixed capitals were R Rs 10,00,000 and M Rs 7,00,000. The partnership deed provided for the following : (i) Interest on capital 12% p.a. (ii) R's salary Rs 6,000 per month and M's salary Rs 60,000 per year. The profit for the year ended 31-03-2007 was Rs 5,04,000 which was distributed in 3:2 without providing for the above. Pass an Adjustment entry. |
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