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Question
X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3 : 2 : 1, respectively. Z’s share in the profit is guaranteed by X and Y to be a minimum of Rs 8,000. The net profit for the year ended March 31, 2020 was Rs 30,000. Prepare Profit and Loss Appropriation Account, indicating the amount finally due to each partner.
Solution
|
Dr. |
Profit and Loss Appropriation Account as on |
Cr. |
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|
Particulars |
Amount |
Particulars |
Amount |
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|
Profit transferred to |
|
Profit and Loss |
30,000 |
||||||||
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X’s Capital |
15,000 |
13,200 |
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Less: Z’s Deficiency {3,000 × (3/5)} |
(1,800) |
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Y’s Capital |
10,000 |
8,800 |
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Less: Z’s Deficiency {3,000 × (2/5)} |
(1,200) |
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Z’s Capital |
5,000 |
|
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Add: Share of Deficiency born by |
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|
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|
X |
1,800 |
8,000 |
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|
Y |
1,200 |
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|
30,000 |
30,000 |
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|
Sukesh |
Verma |
|
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|
Rakesh |
Month |
Rs |
|
|
May 31, 2016 |
600 |
|
|
June 30, 2016 |
500 |
|
|
August 31, 2016 |
1,000 |
|
|
November 1, 2016 |
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|
December 31, 2016 |
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|
|
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|
|
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|
Rohan |
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|
|
Rs |
|
February 01 |
4,000 |
|
May 01 |
10,000 |
|
June 30 |
4,000 |
|
October 31 |
12,000 |
|
December 31 |
4,000 |
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|
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| Particulars | (₹) | Particulars | (₹) |
| To Interest on Capital | By Profit & loss account (After manager’s commission) | ___(2)___ | |
| Richa | ______ | ||
| Anmol | ______ | ||
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| To Profit transferred to: | |||
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| ______ | ______ |
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