Anju and manju are partners sharing profit and losses in the proportio...
Journal Entries for Meenu's Admission:
1. Meenu's Capital Account (Meenu brings in ₹200,000 for her capital)
- Debit: Meenu's Capital Account ₹200,000
- Credit: -
2. Cash/Bank Account (Meenu brings in ₹200,000 for her capital)
- Debit: -
- Credit: Cash/Bank Account ₹200,000
3. Meenu's Goodwill Account (Meenu acquires 1/6th share of goodwill)
- Debit: Meenu's Goodwill Account ₹96,000
- Credit: -
4. Anju's Capital Account (Meenu acquires 1/24th share of Anju's goodwill)
- Debit: Anju's Capital Account ₹4,000 (₹96,000 x 1/24)
- Credit: Meenu's Goodwill Account ₹4,000 (₹96,000 x 1/24)
5. Manju's Capital Account (Meenu acquires 1/8th share of Manju's goodwill)
- Debit: Manju's Capital Account ₹12,000 (₹96,000 x 1/8)
- Credit: Meenu's Goodwill Account ₹12,000 (₹96,000 x 1/8)
6. Meenu's Capital Account (Meenu acquires 1/6th share in the business)
- Debit: Meenu's Capital Account ₹100,000 (1/6 x ₹600,000)
- Credit: Anju's Capital Account ₹70,000 (7/12 x ₹600,000)
- Credit: Manju's Capital Account ₹30,000 (5/12 x ₹600,000)
Division of Profit:
1. Calculate the total profit for the year:
- Total Profit = ₹480,000
2. Calculate the interest on capital for each partner:
- Anju's Interest on Capital = ₹480,000 x (7/12) = ₹280,000
- Manju's Interest on Capital = ₹480,000 x (5/12) = ₹200,000
- Meenu's Interest on Capital = ₹480,000 x (1/6) = ₹80,000
3. Allocate the remaining profit to the partners in their profit-sharing ratio:
- Anju's Share of Profit = ₹480,000 x (7/12) = ₹280,000
- Manju's Share of Profit = ₹480,000 x (5/12) = ₹200,000
- Meenu's Share of Profit = ₹480,000 x (1/6) = ₹80,000
Journal Entries for Dividing the Profit:
1. Profit and Loss Account (For transferring the profit to the partners' capital accounts)
- Debit: Profit and Loss Account ₹760,000 (₹280,000 + ₹200,000 + ₹80,000)
- Credit: Anju's Capital Account ₹280,000
- Credit: Manju's Capital Account ₹200,000
- Credit: Meenu's Capital Account ₹80,000
2. Anju's Capital Account (For receiving her share of profit)