Ajay, Binay, and Chetan were partners sharing profits in the ratio of 3:3:2. The Partnership Deed Provided for the following:

i) Salary of ₹ 2,000 per quarter to Ajay and Binay

ii) Chetan was entitled to a commission of ₹ 8,000

iii) Binay was guaranteed a profit of ₹ 50,000 p.a.

The Profit of the firm for the year ended 31st March 2015 was ₹ 1,50,000 which was distributed among Ajay, Binay, and Chetan in the ratio of 2 : 2 : 1, without taking into consideration the provisions of the partnership Deed. Pass necessary rectifying entry for the above adjustments in the books of the firm. Show your working clearly.

Anurag Pathak Changed status to publish April 11, 2024
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