91 :- Xen,Sam and Tim are partners in a firm. For the year ended 31st March, 2025, the profit of the firm Rs 1,20,000 was distributed equally among them, without giving effect to the following terms on the partnership deed:
(a) Sam’s guarantee to the firm that the firm would earn a profit of at least Rs 1,35,000. Any shortfall in these profits would be met by him.
(b) Profits to be shared in the ratio of 2:2:1
You are required to pass the necessary journal entries to rectify the error in accounting.
Solution :-
