Illustration 21: 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.

Illustration 21: 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.

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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