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, 2026 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, 2026 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:
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 2025)
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 84: P and Q were partners in a firm sharing profits in the ratio of 5:3. On 1st April, 2025 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, 2026 was 4,00,000.
Prepare Profit & Loss Appropriation Account of P, Q and R for the year ended 31st March, 2026.
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 |
Question 85:
Paras, Pawan and Raman are partners sharing profits in the ratio of 3:2:1. Raman is guaranteed annual profit of ₹75,000. Profit for the year ended 31st March, 2026 was ₹3,00,000.
Pass the necessary Journal entries giving effect to the above.
Answer:
|
Date |
Partnership |
|
Dr. (₹) |
Dr. (₹) |
|
|
Profit & Loss Appropriation A/c |
Dr. |
3,00,000 |
|
|
|
To Paras's Capital A/c |
|
|
1,50,000 |
|
|
To Pawan's Capital A/c |
|
|
1,00,000 |
|
|
To Raman's Capital A/c |
|
|
50,000 |
|
|
(Being profit shared in profit sharing ratio 3:2:1) |
|
|
|
|
|
Paras's Capital A/c |
Dr. |
15,000 |
|
|
|
Pawan's Capital A/c |
Dr. |
10,000 |
|
|
|
To Raman's Capital A/c |
|
|
25,000 |
|
|
(Being Ramesh compensated by Paras and pawan for his guarantee profit) |
|
|
|
Working note:
WN1:
Share of profit As per ratio of Profit sharing:
Paras’s share = 3,00,000×3/6=1,50,000
Pawan’s share = 3,00,000×2/6=1,20,000
Raman’s share = 3,00,000×1/6=50,000
WN2:
Raman’s quaranteed a minimum profit of ₹75,000.
Raman’s share of profit Deficiency = ₹75,000-₹50,000=₹25,000
Deficiency will be borne by Paras, Pawan in (3:2)
Aman = 25,000×3/5= 15,000
Raj = 25,000×2/5= 10,000
Ts Grewal Solution 2026-2027
Click below for more Questions
Class 12 | Volume I
Chapter 1 – Accounting For Partnership Firms Fundamentals
Question No. 1 To 5
Question No. 6 To 10
Question No. 11 To 15
Question No. 16 To 20
Question No. 21 To 25
Question No. 26 To 30
Question No. 31 To 35
Question No. 36 To 40
Question No. 41 To 45
Question No. 46 To 50
Question No. 51 To 55
Question No. 56 To 60
Question No. 61 To 65
Question No. 66 To 70
Question No. 71 To 75
Question No. 76 To 80
Question No. 81 To 85
Question No. 86 To 90
Question No. 91 And 92