The partners of a firm distributed the profits for the year ended 31st March 2023, ₹ 4,50,000 in the ratio of 3:2:1 without providing for the following adjustments:

a) X and Y were entitled to a salary of ₹ 7,500 p.a.

b) Y was entitled to a commission of ₹ 22,500

c) Y and Z had guaranteed a minimum profit of ₹ 1,75,000 p.a. to X

d) Profit was to be shared in the ratio of 3:3:2.

Pass the necessary Journal entries for the above adjustment in the books of the firm. Show your working clearly.

Anurag Pathak Changed status to publish April 9, 2023
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