Amit and Sumit are partners sharing profits and losses in the ratio

of 3:2. Firms pays 1000 per month as salary to their manager, ram

who deposited 30000 with the firm carrying interest at 8% p.a. on

1st January,2008 it was decided to treat ram as their partner w.e.f.

1st janurary, 2004 at 1/5th share in profit. It was decided to treat his

deposit as capital carrying intrest @6% p.a. like capital of other

partners. The firm’s profits and losses after above adjustment were

as under:

2004 profit 60000

2005 loss 10000

2006 profit 80000

2007 profit 89600

Record the necessary journal entries

 Ram as a partner :- 

Interest on capital = 30000 x 6/100 x 4 = Rs 7,200

Total profits of 4 saal : Rs 2,19,600 

His share in profits = 1/5 x 219600 + 57600 - 7200 = Rs 52,000

Total = Rs 52,900

 Hope I am correct :p Just revised the topic an hour before :D

 Difference in the TOTALS OF BOTH THR CASES : Rs 1,600 which he will pay to both the partners...

Thus entry will be :-

Ram's capital A/C.    ...Dr 1600

To Amit s Capital A/C 960

To Sumit s capital A/C 640

ummm 1 doubt-  ram as manager.. i understud dt u multiplie 1000 with 12 for d total salary.. bt wats dt 4????? rply asap~~ plzzzz

 ohh sry sry i gt it.. thnxx.. u mean for 4 yrs ryt...

 Ram as a partner :-

Interest on capital = 30000 x 6/100 x 4 = Rs 7,200

Total profits of 4 saal : Rs 2,19,600

His share in profits = 1/5 x 219600 + 57600 - 7200 = Rs 52,000

Total = Rs 52,900

TOTAL PROFITS IS 239600.. N AFTR D MULTIPLICATION D ANS IS NT 52900..????

 N D DIFF IN TOTAL IS NT 1600.. IM SRY IM CNFUSED.. WAT HV U DUN???