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Manu ,kanu and any were partners in firm.anu advanced 45000 as loan to firm on 1april2016.if profits ending for the year 31march2017 were 12000 , give journal entry for distribution of divisible profits among partners?
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Manu ,kanu and any were partners in firm.anu advanced 45000 as loan to...
Interest@6% will be given to anu form advancement of loan to firm.. interest=6^45,000/100=₹2,700 .. This will be deducted from profit of the firm... actual profit after deduction of interest=₹(12,000-2,700)=₹9,300 entry for profit distribution... p&L A/c .....Dr. 9,300 To any capital...3,100 To Manu capital...3,100 To kanu capital....3,100 if the interest in loan has already been shown in P&L A/c then its amount will not be deducted once again... in this case profit will be distributed of ₹4,000 to each partner...
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Manu ,kanu and any were partners in firm.anu advanced 45000 as loan to...
Journal Entry for Distribution of Divisible Profits among Partners
To distribute the divisible profits among partners, we need to follow the profit sharing ratio agreed upon by the partners. In this case, we are given that Manu, Kanu, and Any are partners in the firm. However, the profit-sharing ratio is not mentioned, so we will assume an equal ratio.
1. Calculate Profit Sharing Ratio:
Since the profit-sharing ratio is not mentioned, we assume an equal ratio among the partners. In this case, all partners have an equal share. Therefore, the profit-sharing ratio would be 1:1:1 for Manu, Kanu, and Any.
2. Calculate Share of Each Partner:
To calculate the share of each partner, we divide the total profit by the profit-sharing ratio. In this case, the total profit is given as 12,000.
Share of Manu = (12,000 * 1) / (1 + 1 + 1) = 4,000
Share of Kanu = (12,000 * 1) / (1 + 1 + 1) = 4,000
Share of Any = (12,000 * 1) / (1 + 1 + 1) = 4,000
3. Journal Entry:
To distribute the profits among the partners, we will debit the partners' capital accounts and credit the profit and loss appropriation account.
The journal entry would be as follows:
Date: March 31, 2017
Partner's Capital Accounts Profit and Loss Appropriation Account
Manu: 4,000 12,000
Kanu: 4,000
Any: 4,000
Explanation:
- The partners' capital accounts are debited to reflect the increase in their capital due to the distribution of profits.
- The profit and loss appropriation account is credited to record the distribution of profits among the partners.
The partners' capital accounts are increased with their respective share of profits, and the profit and loss appropriation account is debited with the total profits.
To distribute the divisible profits among partners, we need to follow the profit sharing ratio agreed upon by the partners. In this case, we are given that Manu, Kanu, and Any are partners in the firm. However, the profit-sharing ratio is not mentioned, so we will assume an equal ratio.
1. Calculate Profit Sharing Ratio:
Since the profit-sharing ratio is not mentioned, we assume an equal ratio among the partners. In this case, all partners have an equal share. Therefore, the profit-sharing ratio would be 1:1:1 for Manu, Kanu, and Any.
2. Calculate Share of Each Partner:
To calculate the share of each partner, we divide the total profit by the profit-sharing ratio. In this case, the total profit is given as 12,000.
Share of Manu = (12,000 * 1) / (1 + 1 + 1) = 4,000
Share of Kanu = (12,000 * 1) / (1 + 1 + 1) = 4,000
Share of Any = (12,000 * 1) / (1 + 1 + 1) = 4,000
3. Journal Entry:
To distribute the profits among the partners, we will debit the partners' capital accounts and credit the profit and loss appropriation account.
The journal entry would be as follows:
Date: March 31, 2017
Partner's Capital Accounts Profit and Loss Appropriation Account
Manu: 4,000 12,000
Kanu: 4,000
Any: 4,000
Explanation:
- The partners' capital accounts are debited to reflect the increase in their capital due to the distribution of profits.
- The profit and loss appropriation account is credited to record the distribution of profits among the partners.
The partners' capital accounts are increased with their respective share of profits, and the profit and loss appropriation account is debited with the total profits.
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Manu ,kanu and any were partners in firm.anu advanced 45000 as loan to firm on 1april2016.if profits ending for the year 31march2017 were 12000 , give journal entry for distribution of divisible profits among partners?
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Manu ,kanu and any were partners in firm.anu advanced 45000 as loan to firm on 1april2016.if profits ending for the year 31march2017 were 12000 , give journal entry for distribution of divisible profits among partners? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Manu ,kanu and any were partners in firm.anu advanced 45000 as loan to firm on 1april2016.if profits ending for the year 31march2017 were 12000 , give journal entry for distribution of divisible profits among partners? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Manu ,kanu and any were partners in firm.anu advanced 45000 as loan to firm on 1april2016.if profits ending for the year 31march2017 were 12000 , give journal entry for distribution of divisible profits among partners?.
Manu ,kanu and any were partners in firm.anu advanced 45000 as loan to firm on 1april2016.if profits ending for the year 31march2017 were 12000 , give journal entry for distribution of divisible profits among partners? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Manu ,kanu and any were partners in firm.anu advanced 45000 as loan to firm on 1april2016.if profits ending for the year 31march2017 were 12000 , give journal entry for distribution of divisible profits among partners? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Manu ,kanu and any were partners in firm.anu advanced 45000 as loan to firm on 1april2016.if profits ending for the year 31march2017 were 12000 , give journal entry for distribution of divisible profits among partners?.
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