Commerce Exam  >  Commerce Questions  >  Ravi and Mohan where partner in a firm sharin... Start Learning for Free
Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry?
Most Upvoted Answer
Ravi and Mohan where partner in a firm sharing profit in the ratio of ...
Calculation of Interest on Capital:
- Ravi's interest on capital = 10,00,000 x 12% = 1,20,000
- Mohan's interest on capital = 7,00,000 x 12% = 84,000

Calculation of Salary:
- Ravi's salary = 6,000 x 12 = 72,000
- Mohan's salary = 6,000

Calculation of Profit:
- Total profit = 5,04,000

Distribution of Profit:
- Profit to be distributed equally = 5,04,000 / 2 = 2,52,000
- Ravi's share of profit = 2,52,000 x 7 / 12 = 1,47,000
- Mohan's share of profit = 2,52,000 x 5 / 12 = 1,05,000

Adjustment Entries:
- To record Ravi's interest on capital:
- Debit Interest on Capital Account = 1,20,000
- Credit Ravi's Capital Account = 1,20,000
- To record Ravi's salary:
- Debit Profit and Loss Account = 72,000
- Credit Ravi's Salary Account = 72,000
- To record Mohan's interest on capital:
- Debit Interest on Capital Account = 84,000
- Credit Mohan's Capital Account = 84,000
- To record Mohan's salary:
- Debit Profit and Loss Account = 6,000
- Credit Mohan's Salary Account = 6,000

Final Distribution of Profit:
- Ravi's share of profit = 1,47,000 + 72,000 = 2,19,000
- Mohan's share of profit = 1,05,000 + 6,000 = 1,11,000

Hence, after adjusting for the interest on capital and salaries, Ravi's share of profit is Rs. 2,19,000 and Mohan's share of profit is Rs. 1,11,000.
Community Answer
Ravi and Mohan where partner in a firm sharing profit in the ratio of ...
Ans. Mohan'S Current A/c Dr. 69500 To Ravi's Current A/c 69500(Being adjustment entry passesd.)
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Similar Commerce Doubts

Top Courses for Commerce

Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry?
Question Description
Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry?.
Solutions for Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry? defined & explained in the simplest way possible. Besides giving the explanation of Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry?, a detailed solution for Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry? has been provided alongside types of Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry? theory, EduRev gives you an ample number of questions to practice Ravi and Mohan where partner in a firm sharing profit in the ratio of 7: 5 their respective fixed capitals where Ravi rupees 10 lakh and Mohan rupees 700000 the partnership deed provides for the following :- interest on capital @ 12% per annum and Ravi salary 6,000 per month and mohan salary Rupees 6000 per year the process for the year ended 31st March 2007 was rupees 504000 which were distributed equally without providing for the above pass and adjustment entry? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev