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Mohit Rohan are sharing profit and losses in the ratio 3:2.They admit Rahul for 1/4 share with a guarantee that his share shall be at least 50000.The net loss for the year 31,March,2006 is 160000.Pass an entry for distribution of profit |
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Answer» Answer: mohan cap a/c dr 126000 Rohan cap a/c dr 84000 To Rahul cap a/c 50000 To PROFIT and loss a/c 160000 Explanation: new PSR is 9:6:5 Distribute of loss A 72000 B 48000 C 40000 Distribution of Rahul loss 40000 + 50000 = 90000 A 54000 B 36000 Total profit and loss A 126000 dr B 84000 dr C 50000 cr |
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