**Entry for Distribution of Profits and Guarantee**

To record the distribution of profits and guarantee in the partnership, the following journal entry needs to be made:

**Date: March 31, 2006**

Particulars | Debit | Credit
--- | --- | ---
Profit and Loss Account | Rs. 1,10,000 |
Mohit's Capital Account | Rs. 60,000 |
Rohan's Capital Account | Rs. 30,000 |
Rahul's Capital Account | Rs. 20,000 |
Rahul's Guaranteed Amount | Rs. 50,000 |
To distribute the loss: | | Rs. 1,60,000
Mohit's Capital Account | Rs. 80,000 |
Rohan's Capital Account | Rs. 40,000 |
Rahul's Capital Account | Rs. 40,000 |

**Explanation:**

1. The partnership between Mohit and Rohan is based on a profit-sharing ratio of 2:1, respectively. This means that out of the total profit or loss, Mohit is entitled to 2/3 and Rohan is entitled to 1/3.
2. To distribute the loss of Rs. 1,60,000, we first need to calculate the amount of loss to be borne by each partner. This is done based on their profit-sharing ratio.
- Mohit's share of loss = 2/3 * Rs. 1,60,000 = Rs. 1,06,667
- Rohan's share of loss = 1/3 * Rs. 1,60,000 = Rs. 53,333
3. Since the total loss is greater than Mohit's and Rohan's respective capital balances, they are required to contribute additional capital to cover their share of the loss.
- Mohit's additional capital contribution = Rs. 1,06,667 - Rs. 60,000 = Rs. 46,667
- Rohan's additional capital contribution = Rs. 53,333 - Rs. 30,000 = Rs. 23,333
4. Rahul is admitted as a partner with a 1/4 share in profits, which means he is entitled to 1/4 * total profit. However, his share of profit is guaranteed to be at least Rs. 50,000. Therefore, we need to adjust the distribution of profits to ensure Rahul receives the guaranteed amount.
- Rahul's guaranteed amount = Rs. 50,000
- Rahul's actual share of profit = 1/4 * total profit
- If Rahul's actual share of profit is lower than the guaranteed amount, the difference is debited to the Profit and Loss Account to cover the guarantee.
5. Finally, the total loss of Rs. 1,60,000 is distributed among the partners in their profit-sharing ratio. Mohit's capital account is debited with Rs. 80,000 (2/3 of the loss) and Rohan's capital account is debited with Rs. 40,000 (1/3 of the loss). Rahul's capital account is not debited for the loss as his share is guaranteed.
6. The guarantee amount of Rs. 50,000 is also debited to the Profit and Loss Account to cover Rahul's guaranteed share of profit.

By recording this journal