CBSE 2025, Set 1

Question

(b) Vidhi, Manas and Ansh were partners sharing profits and losses in the ratio of 2:3:5. Ansh was given a guarantee that his share of profits in any given year would not be less than ₹ 1,20,000. Deficiency, if any, would be borne by Vidhi and Manas equally. Profits for the year ended 31st March, 2024 amounted to ₹ 2,00,000.

Pass necessary journal entries in the books of the firm for division of profits.

Edvaya · Accepted Answer

The correct answer is Subjective. **Journal Entries (Books of Vidhi, Manas and Ansh):** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | 2024 Mar 31 | Profit & Loss Appropriation A/c ...Dr.     To Vidhi's Capital A/c     To Manas's Capital A/c     To Ansh's Capital A/c (Profit distributed among the partners in their profit sharing ratio 2:3:5) | | 2,00,000 | 40,000 60,000 1,00,000 | | | Vidhi's Capital A/c ...Dr. Manas's Capital A/c ...Dr.     To Ansh's Capital A/c (Deficiency of ₹20,000 for Ansh borne by Vidhi and Manas equally) | | 10,000 10,000 | 20,000 | *(Alternate Answer: Direct distribution entry combining both steps is also fully acceptable: Profit & Loss App A/c Dr. 2,00,000 To Vidhi 30,000 To Manas 50,000 To Ansh 1,20,000).*

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Accountancy > Accounting For Partnership Firms > Fundamentals Of Partnership

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