Ankur and Bobby were, into the business of providing software solutions in India. They were sharing...

  

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Ankur and Bobby were, into the business of providing software solutions in India. They were sharing profits and losses in the ratio of 3: 2. They admitted Rohit for 1/5 share in the firm. Rohit, an alumni of Chennai would help them, to expand their business to various South African countries where he been working earlier. Rohit is guaranteed a minimum profit of 2,00,000 for the year. In case of any deficiency, Rohit's share is to be borne by Ankur and Bobby in the ratio 4: 1. Loss for the year was Rs. 10,00,000. Pass the necessary Journal entries. Ankur and Bobby were, into the business of providing software solutions in India. They were sharing profits and losses in the ratio of 3: 2. They admitted Rohit for 1/5 share in the firm. Rohit, an alumni of Chennai would help them, to expand their business to various South African countries where he been working earlier. Rohit is guaranteed a minimum profit of 2,00,000 for the year. In case of any deficiency, Rohit's share is to be borne by Ankur and Bobby in the ratio 4: 1. Loss for the year was Rs. 10,00,000. Pass the necessary Journal entries.

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Calculation of new profit sharing ratio Let total share be 1 Share of in... View the full answer