Question 81:
A, B and C were in
partnership sharing profits and losses in the ratio of 4 :2
: 1. It was provided that C’s share in profit for a year would not be less than
`75,000. Profit for the year ended 31st March, 2023
amounted to `3,15,000. You
are required to show the appropriation among the partners. The Profit and Loss
Appropriation Account is not required.
Answer;
Working notes;
|
Profit and loss appropriation account for year ended
31st March, 2023 |
|||
|
Particulars |
` |
Particulars |
` |
|
To Profit A- 18,000-2,000 =16,000 B- 9,000-1,000 =
8,000 C- 4,500+3,000 = 7,500 |
31,500 |
By net profit |
31,500 |
|
|
31,500 |
|
31,500 |
Note; initial profit distributed 3000 in 4;2 or 2:1 in the absence of
any information in the question No profit and loss a/c is required we can
appropriate as below;
Appropriation of profit
|
A- 18,000-2,000 =16,000 B- 9,000-1,000 =
8,000 C- 4,500+3,000 = 7,500 |
|
31,500 |
Question 82:
Asha, Disha and Raghav were
partners in a firm sharing profits in the ratio of 2 :
3:1. According to the partnership agreement, Raghav
was guaranteed an amount of Rs. 40,000 as his share
of profits. The net profit for the year ended 31st March, 2022 amounted to 1,20,000.
Prepare Profit & Loss
Appropriation Account of the firm for the year ended 31st March, 2022. (CBSE
2023)
|
Particulars |
Rs. |
Particulars |
Rs. |
|
To profit transferred to; |
|
By P&L A/c |
1,20,000 |
|
Asha’s Capital A/c |
32,000 |
|
|
|
Disha’s Capital A/c |
48,000 |
|
|
|
Raghav’s Capital A/c |
40,000 |
|
|
|
|
|
|
|
|
|
1,20,000 |
|
1,20,000 |
Working Notes:
|
|
Asha |
Disha |
Raghav |
|
Profit as per 2:3:1 |
40,000 |
60,000 |
20,000 |
|
Deficiency Adjusted |
(8,000) |
(12,000) |
20,000 |
|
Share of each partner |
32,000 |
48,000 |
40,000 |
Question 83:
X,
Y and Z entered into partnership on 1st October, 2023 to share profits
in the ratio of 4 : 3 : 3. X, personally guaranteed that Z's share of profit after charging
interest on capital @ 10% p.a. would not be less then
` 80,000 in any year. Capital contributions were: X –
` 3,00,000, Y
– `
2,00,000 and Z – `
1,50,000.
Profit for the year ended 31st March, 2024 was `
1,60,000. Prepare Profit and Loss Appropriation Account.
Answer:
|
Profit and Loss Appropriation Account for the year ended March
31, 2024 |
||||
|
Dr. |
|
Cr. |
||
|
Particulars |
( `) |
Particulars |
( `) |
|
|
Interest on
Capital: |
|
Net Profit
b/d |
1,60,000 |
|
|
X’s Capital a/c |
15,000 |
|
|
|
|
Y’s Capital a/c |
10,000 |
|
|
|
|
Z’s Capital a/c |
7,500 |
32,500 |
|
|
|
|
|
|
|
|
|
Profit transferred to: |
|
|
|
|
|
X (51,000 – 1,750) |
49,250 |
|
|
|
|
Y (38,250) |
38,250 |
|
|
|
|
Z (38,250 + 1,750) |
40,000 |
1,27,500 |
|
|
|
|
1,60,000 |
|
1,60,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Since Z is admitted on 1st October, 2023 and
Profit is ascertained on March 31, 2024, therefore, interest on capital is
calculated for 6 months and guaranteed amount is considered as ` 40,000 (half of the total amount).
Question 84:
A,
B and C are partners sharing profits in the ratio of 5 : 4 : 1. C
is given a guarantee that his minimum share of profit in any given year would
be at least ` 50,000.
Deficiency, if any, would be borne by A
and B equally. Profit for the
year ended 31st March 2024 was `
4,00,000.
Pass necessary Journal entries in the books of the firm.
Answer:
|
Profit and Loss
Appropriation Account for
the year ended 2024 |
||||
|
Dr. |
|
Cr. |
||
|
Particulars |
( `) |
Particulars |
( `) |
|
|
Profit transferred
to: |
|
Profit and Loss A/c (Net
Profit) |
4,00,000 |
|
|
A’s Capital
A/c |
1,95,000 |
|
|
|
|
B’s Capital
A/c |
1,55,000 |
|
|
|
|
C’s Capital
A/c |
50,000 |
4,00,000 |
|
|
|
|
4,00,000 |
|
4,00,000 |
|
|
|
|
|
|
|
Working Notes:
Profit for the year = ` 4,00,000
Profit sharing ratio = 5 : 4 : 1
C is given a guarantee of
minimum profit of ` 50,000
A’s profit share =4,00,000×5/10=2,00,000
B’s profit share =4,00,000×4/10=1,60,000
C’s profit share =4,00,000×1/10=40,000
Deficiency in C’s share = 5,000 ` 4,000 = ` 1,000
This deficiency is to be
borne by A and B equally.
Deficiency is to be borne by
A=10,000×1/2=5,000
Deficiency is to be borne by
B=10,000×1/2=5,000
Therefore,
Final Profit Share of A = 2,00,000 – 5,000 = `
1,95,000
Final Profit Share of B = 1,60,000 -5,000 = `
1,55,000
Final Profit Share of C =
40,000 + 10,000 = ` 50,000
Question 85:Atul, Bipul and Charu are partners
sharing profits equally. Bipul is guaranteed minimum
profit of `2,00,000 per annum. Salary is
payable to Bipul of `10,000 per month. Net Profit for the year ended 31st
March, 2023 is `6,60,000.
Prepare Profit & Loss
Appropriation Account for the year.
Answer:
|
Profit
& Loss Appropriation A/c |
|||
|
Particulars |
` |
Particulars |
` |
|
To Bipul’s
Capital A/C (Salary) |
1,20,000 |
By Profit and loss a/c |
6,60,000 |
|
To Profit transferred to: |
|
(Profit) |
|
|
Atul’s Capital A/c |
1,70,000 |
|
|
|
Bipul’s Capital A/c |
2,00,000 |
|
|
|
Charu’s Capital A/c |
1,70,000 |
|
|
|
|
6,60,000 |
|
6,60,000 |
Working Notes:
Profit after Bipul’s salary = 6,60,000
-1,20,000
Divisible Profit = 5,40,000
Share of Profits mas per
profit sharing ratio 1:1:1
= 5,40,000÷3=
1,80,000
Guarantee of profit = 2,00,000
Deficiency of profit =2,00,000-1,80,000= 20,000
Deficiency of profit will be
adjusted by Atul and Charu
in 1:1
= 20,000÷2=10,000
|
Adjustment Table of Profit |
|||
|
Partner |
Atul |
Bipul |
Charu |
|
Share of Profits mas per
profit sharing ratio 1:1:1 |
1,80,000 |
1,80,000 |
1,80,000 |
|
Adjustment of Profit |
(-) 10,000 |
(+) 20,000 |
(-) 10,000 |
|
Final share of profit |
1,70,000 |
2,00,000 |
1,70,000 |
Ts Grewal Solution 2024-2025
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Class 12 | Volume I