[NCERT] Q 31Solutions Accounting for Partnership Basic Concepts Class 12

Solution of Question number 31 of Accounting for Partnership Basic Concepts NCERT Accountancy solution Class 12 CBSE Board

Radha, Mary and Fatima are partners sharing profits in the ratio of 5 : 4 : 1. Fatima is given a guarantee that her share of profit, in any year will not be less than ₹ 5,000. The profits for the year ending March 31, 2020 amounted to ₹ 35,000. Shortfall if any, in the profits guaranteed to Fatima is to be borne by Radha and Mary in the ratio of 3 : 2. Record necessary Journal entry to show distribution of profit among the partner.

[Ans : Deficiency borne by Radha, ₹ 900 and Mary, ₹ 600]

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