The firm of A, B and C earned a profit of Rs 20,000 during the year wh

1.	The firm of A, B and C earned a profit of Rs 20,000 during the year which was distributed among the partners in the ratio of 2 : 1 : 1, whereas it should be in the ratio of 1 : 2 : 2. Give a journal entry for rectification.
Answer» A’s Capital A/c Dr. 6,000 To B’s Capital A/c 3,000 To C’s Capital A/c 3,000 (To profit wrongly distributed now rectified.)

The firm of A, B and C earned a profit of Rs 20,000 during the year which was distributed among the partners in the ratio of 2 : 1 : 1, whereas it should be in the ratio of 1 : 2 : 2. Give a journal entry for rectification.

Answer»

A’s Capital A/c Dr. 6,000

To B’s Capital A/c 3,000

To C’s Capital A/c 3,000

(To profit wrongly distributed now rectified.)