Class 12 Exam > Class 12 Questions > A,Band C entered into partnership on 1st J...
Start Learning for Free
A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry
Most Upvoted Answer
A,Band C entered into partnership on 1st Jan , 2011 to share profit...
Journal Entry for Sharing of Profits and Losses in a Partnership
1. Calculation of Profit/Loss Distribution:
- Total Losses = $200,000
- Interest on A's Loan = $8,000
2. Calculation of Total Losses After Interest on Loan:
- Total Losses = $200,000 - $8,000 = $192,000
3. Calculation of C's Minimum Share of Profit:
- C's Minimum Share = $7,000
4. Determining Actual Share of Profit for A and B:
- Total Profit = Total Losses - C's Minimum Share
- Total Profit = $192,000 - $7,000 = $185,000
- A's Share = 2/3 * $185,000 = $123,333.33
- B's Share = 1/3 * $185,000 = $61,666.67
5. Journal Entry:
- Losses Account Dr. $192,000
- A Capital Account Dr. $8,000
- To B Capital Account $61,666.67
- To C Capital Account $7,000
- To A Capital Account $123,333.33
Explanation:
- The losses are distributed among the partners according to their profit-sharing ratio, ensuring that C's share is not less than $7,000 as per the partnership agreement.
- A's loan interest is also included in the losses to be shared among the partners.
- The journal entry records the distribution of losses to A, B, and C's capital accounts based on their profit-sharing ratio.
1. Calculation of Profit/Loss Distribution:
- Total Losses = $200,000
- Interest on A's Loan = $8,000
2. Calculation of Total Losses After Interest on Loan:
- Total Losses = $200,000 - $8,000 = $192,000
3. Calculation of C's Minimum Share of Profit:
- C's Minimum Share = $7,000
4. Determining Actual Share of Profit for A and B:
- Total Profit = Total Losses - C's Minimum Share
- Total Profit = $192,000 - $7,000 = $185,000
- A's Share = 2/3 * $185,000 = $123,333.33
- B's Share = 1/3 * $185,000 = $61,666.67
5. Journal Entry:
- Losses Account Dr. $192,000
- A Capital Account Dr. $8,000
- To B Capital Account $61,666.67
- To C Capital Account $7,000
- To A Capital Account $123,333.33
Explanation:
- The losses are distributed among the partners according to their profit-sharing ratio, ensuring that C's share is not less than $7,000 as per the partnership agreement.
- A's loan interest is also included in the losses to be shared among the partners.
- The journal entry records the distribution of losses to A, B, and C's capital accounts based on their profit-sharing ratio.
|
Explore Courses for Class 12 exam
|
|
Similar Class 12 Doubts
A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry
Question Description
A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry .
A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry .
Solutions for A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry in English & in Hindi are available as part of our courses for Class 12.
Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
Here you can find the meaning of A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry defined & explained in the simplest way possible. Besides giving the explanation of
A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry , a detailed solution for A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry has been provided alongside types of A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry theory, EduRev gives you an
ample number of questions to practice A,Band C entered into partnership on 1st Jan , 2011 to share profits in the ratio 2:1 it was provided in the deed that c share of profit will not be less than 7000 p.a the losses for the year ended 31 December 2011 were 200000 before allowing intt on capital 8000 on A loan which is due for the current year.pass necessary journal entry tests, examples and also practice Class 12 tests.
|
|
Explore Courses for Class 12 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup