Anil, Sunil and Ravinder entered into a partnership on 1st April 2015 to share profits in the ratio of 2 : 1 : 1. It was provided in the deed that Ravinder's share of profit will not be less than Rs 70,000 per annum. The losses for the year ended 31st March, 2016 were Rs 2,00,000 before allowing interest Rs 8,000 on Anil's Loan which is due for the current year.
You are required to show necessary account for division of loss and also pass the necessary journal entries.
Dear Student,
Regards
| Profit and Loss Account for the year ended 31,March 2016 |
|||
| Dr. | Cr. | ||
| Particulars | Amount Rs |
Particulars | Amount Rs |
| Loss b/d (2,00,000+8,000) | 2,08,000 | Loss tfd. to Partners’ Capital A/c | |
| Ravinder’s Capital A/c | 70,0000 | Anil(1,04,000+81,333) | 1,85,333 |
| Sunil(52,000+40,667) | 92,667 | ||
| Ravinder(52,000-1,22,000) | |||
| 2,78,000 | 2,78,000 | ||
| Journal | |||||
| Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
| Anil’s Capital A/c | Dr. | 1,04,000 | |||
| Sunil’s Capital A/c | Dr. | 52,000 | |||
| Ravinder’s Capital A/c | Dr. | 52,000 | |||
| To Profit & Loss A/c | 2,08,000 | ||||
| (Loss shared) | |||||
| Anil’s Capital A/c | Dr. | 81,333 | |||
| Sunil’s Capital A/c | Dr. | 40,667 | |||
| To Ravinder’s Capital A/c | 1,22,000 | ||||
| (guarantee adjusted) | |||||
Regards