The partners of a firm, Alia, Bhanu and Chand distributed the profits for the year ended 31st March, 2017, ₹ 80,000 in the ratio of 3:3:2 without providing for the following adjustments:
a) Alia and Chand were entitled to a salary of ₹ 1,500 each p.m.
b) Bhanu was entitled for a salary of ₹ 4,000 p.a.

Pass the necessary Journal entry for the above adjustments in the books of the firm. Show workings clearly

Dear student
JOURNAL
S.NO PARTICULARS L.F DEBIT CREDIT
1. Alia capital A/C       DR
Bhanu capital A/C    DR
Chand capital A/C    DR 
    To Profit and loss adjustment A/C
(Being share of profit wrongly credited to partner capital A/C)
  30,000
30,000
20,000


 

80,000
2. Profit and aloss adjustment A/C    DR
    To alia capital A/C
    To bhanu capital A/C
    To chand capital A/C
(Being salary credited to partners capital A/C)
  84,000



 
18,000
48,000
18,000
3. alia capital A/C    DR
Bhanu capital A/C    DR
Chand capital A/C    DR
    To profit and loss adjustment A/C
(Being loss on adjustment transferred to capital A/C)
  1,500
1,500
1,000

 


4,000
WORKING NOTE:
ADJUSTMENT TABLE
PARTICULARS ALIA BHANU CHAND FIRM    
amount to be debited:
wrong profit without adjustments:
(30,000) (30,000) (20,000) (80,000)    
Amount to be credited:
salary to partners 
18,000 48,000 18,000 84,000    
Amount to be debited in capital A/C
loss incurred after adjustments 
(1,500) 1,500) (1,000) (4,000)    
  13,500
(debit)
16,500
(credit)
3,000
(debit)
     
ADJUSTMENT ENTRY:
Alia capital A/C    DR                           13,500
Chand capital A/C    DR                        3,000
    To bhanu capital A/C                                     16,500    
Regards

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