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Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.?
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Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their F...
Journal Entries for Partnership Firm
1. Salary of Partners
As per the provisions of partnership deed, each partner is entitled to a salary of ₹ 5,000 quarterly. The journal entry for the salary of partners will be:
Salary A/c Dr. 15,000
To Partner’s Capital A/c 15,000
2. Interest on Capital
Interest on capital @ 7.5% p.a. is to be provided to each partner. The journal entry for interest on capital will be:
Interest on Capital A/c Dr. 15,000
To Partner’s Capital A/c 15,000
3. Profit Sharing Ratio
Profits are to be shared in the ratio of 3:1:1. The journal entry for profit sharing will be:
Partner’s Capital A/c Dr. 67,500
To Aruna’s Capital A/c 45,000
To Bhoj’s Capital A/c 22,500
To Yuvi’s Capital A/c 22,500
4. Net Profit
The net profit for the year ended 31st March, 2023, was ₹ 90,000. The journal entry for net profit will be:
Profit and Loss A/c Dr. 90,000
To Partner’s Capital A/c 67,500
To General Reserve A/c 22,500
In this entry, the profit and loss account is debited, and partner’s capital account is credited for their respective shares of profit. A portion of the profit is also transferred to the general reserve account.
Conclusion
These are the journal entries for the partnership firm as per the provisions of the partnership deed. It is important to maintain proper books of accounts and record all the transactions accurately to ensure the smooth functioning of the partnership firm.
1. Salary of Partners
As per the provisions of partnership deed, each partner is entitled to a salary of ₹ 5,000 quarterly. The journal entry for the salary of partners will be:
Salary A/c Dr. 15,000
To Partner’s Capital A/c 15,000
2. Interest on Capital
Interest on capital @ 7.5% p.a. is to be provided to each partner. The journal entry for interest on capital will be:
Interest on Capital A/c Dr. 15,000
To Partner’s Capital A/c 15,000
3. Profit Sharing Ratio
Profits are to be shared in the ratio of 3:1:1. The journal entry for profit sharing will be:
Partner’s Capital A/c Dr. 67,500
To Aruna’s Capital A/c 45,000
To Bhoj’s Capital A/c 22,500
To Yuvi’s Capital A/c 22,500
4. Net Profit
The net profit for the year ended 31st March, 2023, was ₹ 90,000. The journal entry for net profit will be:
Profit and Loss A/c Dr. 90,000
To Partner’s Capital A/c 67,500
To General Reserve A/c 22,500
In this entry, the profit and loss account is debited, and partner’s capital account is credited for their respective shares of profit. A portion of the profit is also transferred to the general reserve account.
Conclusion
These are the journal entries for the partnership firm as per the provisions of the partnership deed. It is important to maintain proper books of accounts and record all the transactions accurately to ensure the smooth functioning of the partnership firm.
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Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.?
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Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.?.
Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.?.
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Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.?, a detailed solution for Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.? has been provided alongside types of Aruna, Bhoj & Yuvi were partners in a firm. On 1st April, 2022 their Fixed Capitals stood at ₹ 1, 00,000; ₹ 50,000 and ₹ 50,000 respectively. As per the provisions of partnership deed: (i) Each partner were entitled to an Salary of ₹ 5,000 quarterly. (ii) Interest on Capital @ 7.5% p.a. was to be provided. (iii) Profits were to be shared in the ratio of 3:1:1. Net profit for the year ended 31st March, 2023 was ₹ 90,000. Pass Journal Entries for the above in the books of the firm.? theory, EduRev gives you an
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