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Distribution of Profit in Capital Ratio Problem 8 On Jan. 1, 2019 Puja and Neha started a business in partnership with *20,000 and 12,000 respectively as capital. They agree to share profits in the capital ratio. They have the following transactions during the Date Capital Introduced year: Amount Withdrawn Puja Neha ₹ 1st April 5,000 1st Aug. 8,000 1st Oct. 1st Dec. 5,000 - Puja P 2,000 Neha ₹ 4,000 The business earned a profit of 45,200 during the year ended 31st December, 2019. Distribute the profits in capital ratio and pass a Journal entry for the distribution of profit.

Distribution of Profit in Capital Ratio Problem 8 On Jan. 1, 2019 Puja and Neha started a business in partnership with *20,000 and 12,000 respectively as capital. They agree to share profits in the capital ratio. They have the following transactions during the Date Capital Introduced year: Amount Withdrawn Puja Neha ₹ 1st April 5,000 1st Aug. 8,000 1st Oct. 1st Dec. 5,000 - Puja P 2,000 Neha ₹ 4,000 The business earned a profit of 45,200 during the year ended 31st December, 2019. Distribute the profits in capital ratio and pass a Journal entry for the distribution of profit.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Distribution of Profit in Capital Ratio Problem 8 On Jan. 1, 2019 Puja and Neha started a business in partnership with *20,000 and 12,000 respectively as capital. They agree to share profits in the capital ratio. They have the following transactions during the Date Capital Introduced year: Amount Withdrawn Puja Neha ₹ 1st April 5,000 1st Aug. 8,000 1st Oct. 1st Dec. 5,000 - Puja P 2,000 Neha ₹ 4,000 The business earned a profit of 45,200 during the year ended 31st December, 2019. Distribute the profits in capital ratio and pass a Journal entry for the distribution of profit.
Transcribed Image Text:Distribution of Profit in Capital Ratio Problem 8 On Jan. 1, 2019 Puja and Neha started a business in partnership with *20,000 and 12,000 respectively as capital. They agree to share profits in the capital ratio. They have the following transactions during the Date Capital Introduced year: Amount Withdrawn Puja Neha ₹ 1st April 5,000 1st Aug. 8,000 1st Oct. 1st Dec. 5,000 - Puja P 2,000 Neha ₹ 4,000 The business earned a profit of 45,200 during the year ended 31st December, 2019. Distribute the profits in capital ratio and pass a Journal entry for the distribution of profit.
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