Amrit, Bhanu and Charu were partners in a firm sharing profits equally. Bhanu retired on 30th September, 2022. Profit till the date of retirement was to be estimated based on last year’s profit. Profit for the year ended 31st March, 2022, was ₹ 3,60,000. Calculate Bhanu’s share of profit till his retirement and pass Journal entry/entries for the same when: i) The profit sharing ratio between Amrit and Charu does not change; and ii) The new profit sharing ratio between Amrit and Charu changes to 3 : 2. [Ans.: i) Dr Profit & Loss Suspense A/c by ₹ 60,000 and Cr. Bhanu’s Capital A/c by ₹ 60,000. ii) Dr. Amrit’s Capital A/c by ₹ 48,000 and Charu’s Capital A/c by ₹ 12,000; Cr. Bhanu’s Capital A/c by ₹ 60,000.]
Amrit, Bhanu and Charu were partners in a firm sharing profits equally. Bhanu retired on 30th September, 2022. Profit till the date of retirement was to be estimated based on last year’s profit. Profit for the year ended 31st March, 2022, was ₹ 3,60,000.
Calculate Bhanu’s share of profit till his retirement and pass Journal entry/entries for the same when:
i) The profit sharing ratio between Amrit and Charu does not change; and
ii) The new profit sharing ratio between Amrit and Charu changes to 3 : 2.
[Ans.: i) Dr Profit & Loss Suspense A/c by ₹ 60,000 and Cr. Bhanu’s Capital A/c by ₹ 60,000. ii) Dr. Amrit’s Capital A/c by ₹ 48,000 and Charu’s Capital A/c by ₹ 12,000; Cr. Bhanu’s Capital A/c by ₹ 60,000.]
Anurag Pathak Changed status to publish June 24, 2023
