accounting ..urgent pls
posted by jessie .
can you help please..
PROB 1: A, B and C shared the profit of Rs. 9,00,000 in the ratio of 2:2:1 without providing for interest on B’s loan, B granted a loan of Rs. 4,00,000 in the beginning of accounting year. Where as the partnership deed is silent on the interest on loan and the profit sharing ratio. Give adjusting entry.
PROB 2: A and B are partners sharing profits & Losses in the ratio of 3:1. Their capitals were Rs. 60,000 and Rs. 40,000 respectively. As from 1st April 2005 it was agreed to change the profit sharing ratio to 3:2. According to the partnership deed goodwill should be valued at three years purchase of the average of five year’s profits. The profits of the previous five years were 2001- Rs 30,000, 2002 – Rs.40,000, 2003 – Rs 50,000, 2004 – Rs. 60,000 & 2005 – Rs. 70,000
Pass necessary Journal entry.
Hopefully some of the links on the next 2 posts, which I saw first, will apply here as well.