Question 86: 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, 2024 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 87: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, 2024 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 88: 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, 2024 of `30,000.
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 89:
P, Q and R entered into
partnership on 1st April, 2018 to share profits and losses in the ratio of 12 : 8 : 5. It was provided that in no case R's share in
profit be less then ` 30,000 p.a. The profits and losses for the period
ended 31st March were: 2021 Profit ` 1,20,000 2023 Profit
` 1,80,000; 2023 Loss
`1,20,000.
Pass the necessary Journal entries in the books of the firm.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
|
|
|
|
|
|
2021 |
P’s Capital A/c |
Dr. |
|
3,600 |
|
|
|
Q’s Capital A/c |
Dr. |
|
2,400 |
|
|
|
To R’s Capital A/c |
|
|
|
6,000 |
|
|
(Deficiency adjusted) |
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
P’s Capital A/c |
Dr. |
|
32,400 |
|
|
|
Q’s Capital A/c |
Dr. |
|
21,600 |
|
|
|
To R’s Capital A/c |
|
|
|
54,000 |
|
|
(Deficiency adjusted) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1:
Calculation
of amount of deficiency of R
R's Minimum Guaranteed Profit = ` 30,000
for 2021
R's actual share of profit = 1,20,000 ×12/25=` 24,000
Deficiency in R's Profit = 30,000 - 24,000 = ` 6,000
This deficiency is to be borne by P & Q in the ratio of 12:8.For 2023,
R's actual share of profit = 1,80,000×8/25=` 36,000
This implies that there is no deficiency in R's profit share as his actual share exceeds his minimum
guaranteed share. For 2023,
R's share of loss = 1,20,000×5/25=` 24,000
Deficiency in R's Profit = 30,000 + 24,000 = ` 54,000
This deficiency is to be borne by P & Q in the ratio of 12:8.
Question 90: P and Q were partners in a firm sharing profits in
the ratio of 5:3. On 1st April, 2023 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, 2023 was 4,00,000.
Prepare Profit & Loss
Appropriation Account of P, Q and R for the year ended 31st March, 2023.
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 |
|
|
|
|
Q’s capital A/c |
|
|
|
|
R’s capital A/c |
|
|
|
|
|
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 |
Ts Grewal Solution 2024-2025
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Class 12 | Volume I