Question 81: Parul, Prerna
and Kaushal are partners sharing profits equally. Parul is guaranteed minimum annual profit of `2,00,000. Kaushal is to get Commission@ 5% of Net Sales and the
commission is determined at `50,000.
Net Profit
for the year ended 31st March, 2025 is ` 2,50,000.
Prepare
Profit & Loss Appropriation Account for the year.
Answer:
|
Profit & Loss Appropriation A/c |
|||
|
Particulars |
` |
Particulars |
` |
|
To Kaushal’s
Capital A/c |
50,000 |
By Profit and loss a/c |
2,50,000 |
|
(commission) |
|
(Profit) |
|
|
To Parul’s
Capital A/c |
2,00,000 |
|
|
|
(Profit transferred) |
|
|
|
|
|
2,50,000 |
|
2,50,000 |
Working Notes:
Share of
each partner 2,00,000÷3=66,666.67
Note: Share of each partner is less than
guarantee but divisible profit is equal to guarantee, hence whole divisible
profit should be credited to parul’s Capital A/c
Question 82:Nimrat, Maira and
Kabir are partners sharing profits in the ratio of
2:2:1.Nimrat is guaranteed minimum profit of `1,60,000 per annum. Net Profit for
the year ended 31st March, 2025 is `1,00,000.
Prepare
Profit & Loss Appropriation Account for the year.
Answer:
|
Profit & Loss Appropriation A/c |
||||
|
Particulars |
` |
Particulars |
` |
|
|
To Nimrat’s
Capital A/c |
1,60,000 |
By Profit and loss a/c |
1,00,000 |
|
|
(Profit transferred) |
|
(Profit) |
|
|
|
|
|
By Loss transferred to; |
|
|
|
|
|
Maira’s Capital A/c |
40,000 |
|
|
|
|
Kabir’s Capital A/c |
20,000 |
60,000 |
|
|
|
|
|
|
|
|
2,50,000 |
|
2,50,000 |
|
Note: Loss
will be born by Maira and Kabirin 2:1, Since Nimrat
is guaranteed minimum share of profit of 1,60,000.
Maira =
60,000×2÷3=40,000
Kabir =
60,000×1÷3=20,000
Question 83: Ashmit, Abbas and
Karman are partners sharing profits in the ratio of 3:2:1.Abbas is guaranteed
minimum profit of `1,50,000 per annum. The firm
incurred loss for the year ended 31st March, 2025 of `30,000.how much deficiency will Ashmit bear for the year.
Prepare
Profit & Loss Appropriation Account for the year.
Answer:
|
|
Profit & Loss Appropriation A/c |
||||
|
Particulars |
` |
Particulars |
` |
||
|
To Profit
and loss a/c |
30,000 |
|
|
||
|
(Loss
transferred from P&L account) |
|
|
|
||
|
To Abbas’s Capital A/c |
1,50,000 |
By Loss
transferred to; |
|
||
|
(Profit
transferred) |
|
Ashmit’s Capital A/c |
1,35,000 |
|
|
|
|
|
Karman’s
Capital A/c |
45,000 |
1,80,000 |
|
|
|
|
|
|
|
|
|
|
1,80,000 |
|
1,80,000 |
||
Working notes:
Note: Loss
will be borne by Ashmitand Karmanin 3:1, Since Abbas
is guaranteed minimum share of profit of 1,50,000.
Ashmit= 1,80,000×3÷4= 1,35,000
Karman= 1,80,000×1÷4= 45,000
Question
84:
Anand, Ridhi, and Shyam were partners in a firm sharing profits and losses in
the ratio of 2:2:1. Their fixed capitals were ₹ 1,00,000,
₹ 60,000, and ₹ 40,000 respectively. For the year ended 31st March,
2023, interest on capital was credited to their capital accounts @ 9% pa. instead of 7% p.a. Pass the necessary adjusting Journal
entry. (CBSE 2024)
Answer:
|
Anand's Current A/c |
Dr. |
400 |
|
|
To Ridhi's
Current A/c |
|
|
400 |
|
(Interest on capital was credited to
their accounts @ 9% pa. instead of 7% p.a., 2% in excess, now adjusted) |
|
|
|
Interest on capital was credited to
their accounts @ 9% pa. instead of 7% p.a., 2% in
excess was to be distributed in profit sharing ratio of 2:2:1.
Adjustment Table
|
|
Anand |
Ridhi |
Shyam |
|
|
Interest was to be credited in profit
sharing ratio of 2:2:1 |
1,600 |
1,600 |
800 |
4,000 |
|
Interest was credited 2% in excess |
2,000 |
1,200 |
800 |
4,000 |
|
Amount to be adjusted |
400 |
400 |
Nil |
|
|
|
Debit |
Credit |
|
|
Question
85: P and Q were
partners in a firm sharing profits in the ratio of 5:3. On 1st April, 2024 they
admitted R as a new partner for 1/8th share in the profits with a guaranteed
profit of 75,000. The new profit-sharing ratio between P and Q will remain the
same but they agreed to bear any deficiency on account of guarantee to R in the
ratio of 3:2. The profit of the firm for the year ended 31st March, 2025 was 4,00,000.
Prepare
Profit & Loss Appropriation Account of P, Q and R for the year ended 31st
March, 2025.
Answer:
|
Profit & Loss Appropriation A/c |
|||
|
Particulars |
Rs. |
Particulars |
Rs. |
|
To profit transferred to; |
4,00,000 |
By Profit & Loss A/c |
4,00,000 |
|
P’s
capital A/c- 2,03,750 |
|
|
|
|
Q’s
capital A/c - 1,21,250 |
|
|
|
|
R’s
capital A/c 75,000 |
|
|
|
|
|
4,00,000 |
|
4,00,000 |
1. Share profit according to profit
sharing ratio
Profit share
of R 4,00,000×1/8=50,000
Share of
P and Q in remaining profit 4,00,000-50,000=3,50,000
P’s share= 3,50,000×5/8=2,18,750
Q’s share= 3,50,000×3/8=1,31,250
2.
Deficiency of profit
R’s
Deficiency is the share of profit 75,000-50,000=25,000
3.
Deficiency shared as follow by P and Q in 3:2
P=25,000×3/5=15,000
Q=25,000×2/5=10,000
4.
Adjustment table of guarantee profit
|
|
P |
Q |
R |
|
Profit as
per ratio |
2,18,750 |
1,31,250 |
50,000 |
|
Adjustment
of guarantee |
-15,000 |
-10,000 |
+25,000 |
|
|
2,03,750 |
1,21,250 |
75,000 |