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The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2:2:1, as they are partners from the beginning now Ali wants that he should get equal share in the profits with Harry and Porter and he further wishes that the change in the profit sharing ratio should come into effect retrospectively were for the last three year. Harry and Porter have agreement on this acount. The profits for the last three years were (Rs) 2003-04 22,000 2004-05 24,000 2005-06 29,000 Show adjustment of profits by means of a single adjustment journal entry. |
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Answer» The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2:2:1, as they are partners from the beginning now Ali wants that he should get equal share in the profits with Harry and Porter and he further wishes that the change in the profit sharing ratio should come into effect retrospectively were for the last three year. Harry and Porter have agreement on this acount. The profits for the last three years were (Rs) 2003-04 22,000 2004-05 24,000 2005-06 29,000 Show adjustment of profits by means of a single adjustment journal entry. |
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