Question

Sangeet and Suman were partners in a firm sharing profits and losses in the ratio of 7 : 3. During the year ended 31.3.2021, the firm earned a profit of ₹ 1,00,000. After preparation of the financial statements, it was discovered that salary to Suman @ ₹ 3,000 per month had been omitted. The necessary adjustment entry for the same will be:

Options

• 	Dr. (₹)	Cr. (₹)
  Profit and Loss Appropriation A/c          ...Dr.	36,000
  To Suman's Capital A/c		36,000

• 	Dr. (₹)	Cr. (₹)
  Sangeet's Capital A/c          ...Dr.	36,000
  To Suman's Capital A/c		36,000

• 	Dr. (₹)	Cr. (₹)
  Profit and Loss Adjustment A/c          ...Dr.	36,000
  To Suman's Capital A/c		36,000

• 	Dr. (₹)	Cr. (₹)
  Sangeet's Capital A/c          ...Dr.	25,200
  To Suman's Capital A/c		25,200

Answer 1

	Dr. (₹)	Cr. (₹)
Sangeet's Capital A/c          ...Dr.	25,200
To Suman's Capital A/c		25,200

Explanation:

Total salary = ₹ 3,000 × 12 = ₹ 36,000

Amount of Profit = ₹ 1,00,000

Amount of Profit to be credited = ₹ 64,000

Share of Profit Sangeet = `7/10xx64,000` = 44,800

Profit shared: Sangeet = 70,000

Amount Received less = 70,000 - 44,800 = ₹ 25,200