The firm of Amish, British and Misha, who have been sharing profits in the ratio of $\displaystyle 2$ : $\displaystyle 2$ : $\displaystyle 1$, have existed for some years. Misha wanted that she should get equal share in the profits with Amish and British and she further wished that the change in the profit sharing ratio should come into effect retrospectively for the last three years. Amish and British had agreement for this. The profits for the last three years were : $\displaystyle 2021$ - $\displaystyle 22$ ₹ $\displaystyle 1,15,000$ $\displaystyle 2022$ - $\displaystyle 23$ ₹ $\displaystyle 1,24,000$ $\displaystyle 2023$ - $\displaystyle 24$ ₹ $\displaystyle 2,11,000$ Show adjustment of profits by means of a single adjustment journal entry. Show your working clearly.

OR

Vidhi, Mamas and Ansh were partners sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 3$ : 5. Ansh was given a guarantee that his share of profits in any given year would not be less than ₹ $\displaystyle 1,20$,000. Deficiency, if any, would be borne by Vidhi and Manas equally. Profits for the year ended 31st March, $\displaystyle 2024$ amounted to ₹ $\displaystyle 2,00$,000. Pass necessary journal entries in the books of the firm for division of profits.

Books of Amish, Nitish and Misha Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) Amish’s Capital A/c Dr. $\displaystyle 30,000$ Nitish’s Capital A/c Dr. $\displaystyle 30,000$ To Misha’s Capital A/c $\displaystyle 60,000$ (Adjustment of profit for the last three years on account of change in profit sharing ratio) .. Adjustment Table Partners Dr. Profits (₹) Cr. Profits (₹) Ner Effect $\displaystyle 2$:$\displaystyle 2$:$\displaystyle 1$ $\displaystyle 1$:$\displaystyle 1$:$\displaystyle 1$ Dr. (₹) Cr. (₹) Amish $\displaystyle 1,80,000$ $\displaystyle 1,50,000$ $\displaystyle 30,000$ Nitish $\displaystyle 1,80,000$ $\displaystyle 1,50,000$ $\displaystyle 30,000$ Misha $\displaystyle 90,000$ $\displaystyle 1,50,000$ $\displaystyle 60,000$ $\displaystyle 4,50,000$ $\displaystyle 4,50,000$ $\displaystyle 60,000$ $\displaystyle 60,000$ Q. (b) Vidhi, Manas and Ansh were partners sharing… Ans. Books of Vidhi, Manas and Ansh Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2024$ Profit & Loss Appropriation A/c Dr. $\displaystyle 2,00,000$ Mar31 To Vidhi’s Capital A/c $\displaystyle 40,000$ To Manas’s Capital A/c $\displaystyle 60,000$ To Ansh’s Capital A/c $\displaystyle 1,00,000$ (Profit distributed among the partners in their profit sharing ratio) ” Vidhi’s Capital A/c Dr. $\displaystyle 10,000$ Manas’s Capital A/c Dr. $\displaystyle 10,000$ To Ansh’s Capital A/c $\displaystyle 20,000$ (Deficiency for Ansh borne by Vidhi and Manas equally) Alternate Answer: Books of Vidhi, Manas and Ansh Journal Date Particulars L.F. Dr. Cr. Amount Amount (₹) (₹) $\displaystyle 2024$ Profit & Loss Appropriation A/c Dr. $\displaystyle 2,00,000$ Mar.31 To Vidhi’s Capital A/c $\displaystyle 30,000$ To Manas’s Capital A/c $\displaystyle 50,000$ To Ansh’s Capital A/c $\displaystyle 1,20,000$ (Profit distributed among the partners in their profit sharing ratio with guaranteed amount to Ansh) .