Net loss of a firm as per the Profit and Loss Account for the year ending March 31, 2024 amounted to Rs. 75,000. Yaduvanshi, Madhulika, and Vidushi are partners, sharing profits and losses in the ratio of . Their fixed capitals on April 01, 2019 were: Yaduvanshi Rs. 5,00,000, Madhulika Rs. 4,00,000, and Vidushi Rs. 3,50,000. On the basis of the above information, select the correct journal entry to distribute the loss:
- AYaduvanshi capital A/c Dr. 30,000Madhulika capital A/c Dr. 30,000Vidushi capital A/c Dr. 15,000To profit & loss appropriation A/c 75,000
- BYaduvanshi current A/c Dr. 30,000Madhulika current A/c Dr. 30,000Vidushi current A/c Dr. 15,000To profit & loss appropriation A/c 75,000
- CProfit & loss appropriation A/c Dr. 75,000To Yaduvanshi capital A/c 30,000To Madhulika capital A/c 30,000To Vidushi capital A/c 15,000
- DProfit & loss appropriation A/c Dr. 75,000To Yaduvanshi current A/c 30,000To Madhulika current A/c 30,000To Vidushi current A/c 15,000
Solution & Step-by-step Explanation
The firm has a net loss of Rs. 75,000 to distribute.Since the partners maintain Fixed Capital Accounts, all adjustments, profits, and losses must be routed through their Current Accounts.The profit-sharing ratio is . Total parts = .Yaduvanshi's share of loss: Madhulika's share of loss: Vidushi's share of loss: To distribute a loss, partner current accounts are debited, and the Profit & Loss Appropriation account is credited.