A,B and C are sharing profits in the ratio 3 : 2 : 1 respectively . C wants that profits be shared equally and it should be applicable retrospectively from the last three years. Other partners have no objection to this. Profits for the last three years were $ 1,20,000, $ 94,000 and $ 1,10,000 respectively. Record adjustment by means of a journal entry and show the working notes.
A,B and C are sharing profits in the ratio 3 : 2 : 1 respectively . C wants that profits be shared equally and it should be applicable retrospectively from the last three years. Other partners have no objection to this. Profits for the last three years were $ 1,20,000, $ 94,000 and $ 1,10,000 respectively. Record adjustment by means of a journal entry and show the working notes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A,B and C are sharing profits in the ratio 3 : 2 : 1 respectively . C wants that profits be shared equally and it should be applicable retrospectively from the last three years. Other partners have no objection to this. Profits for the last three years were $ 1,20,000, $ 94,000 and $ 1,10,000 respectively. Record adjustment by means of a journal entry and show the working notes.
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