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Question
The partners of a firm distributed the profits for the year ended 31st March, 2024, ₹ 90,000, in equal proportion without providing for the following adjustments:
- A and B each were entitled to a salary of ₹ 1,500 per quarter.
- C was entitled to a commission of ₹ 18,000.
- Profits were to be shared in the ratio of 3 : 2 : 1.
In the adjustment entry:
Options
Dr. A ₹ 4,000; Dr. B ₹ 4,000; Cr. C ₹ 8,000
Cr. A ₹ 4,000; Cr. B ₹ 4,000; Dr. C ₹ 8,000
Dr. A ₹ 6,000; Cr. B ₹ 4 000; Cr. C ₹ 2,000
Cr. A ₹ 6,000; Dr. B ₹ 4,000; Dr. C ₹ 2,000
MCQ
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Solution
Cr. A ₹ 6,000; Dr. B ₹ 4,000; Dr. C ₹ 2,000
Explanation:
| Table Showing Adjustment | ||||
| Particulars | A (₹) | B (₹) | C (₹) | Total (₹) |
| Salary (Cr.) | 6,000 | 6,000 | - | 12,000 |
| Commission (Cr.) | - | - | 18,000 | 18,000 |
| Remaining Profit, i.e., ₹ 90,000 − ₹ 12,000 − ₹ 18,000 = ₹ 60,000, will be divided between A, B and C in 3 : 2 : 1 (Cr.) | 30,000 | 20,000 | 10,000 | 60,000 |
| (Cr.) | 36,000 | 26,000 | 28,000 | 90,000 |
| Less: Profit already distributed (₹ 90,000 equally) (Dr.) | 30,000 | 30,000 | 30,000 | 90,000 |
| (Cr.) 6,000 | (Dr.) 4,000 | (Dr.) 2,000 | - | |
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