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InterviewSolution
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A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They earned a profit of ₹ 30,000 during 2017-18. Distribute profit among A, B and C if: (a) C’s share of profit is guaranteed to be ₹ 6,000 Minimum. (b) Minimum profit payable to C amounting to ₹ 6,000 is guaranteed by A. (c) Guaranteed minimum profit of ₹ 6,000 payable to C is guaranteed by B. (d) Any deficiency after making payment of guaranteed ₹ 6,000 will be borne by A and B in the ratio of 3 : 1. |
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Answer» n:Case (a) PROFIT and Loss Appropriation Account DR Cr Particulars Rs. Particulars Rs. To Profit transferred to : By Net Profit b/d 30,000 A's CAPITAL A/c 14,400 B's Capital A/c 9,600 C's Capital A/c 6,000 30,000 30,000 30,000 Working Notes :Profit = 30, 000 Profit sharing ratio= 3 : 2 : 1 C is given a guarantee of MINIMUM profit of 6, 000 A's Profit Share = 30, 000 x =15 000 B's Profit Share = 30, 000 x = 10,000 C's Profit Share =30, 000 x = 5 000 Deficiency in C's Profit Share = 6, 000 - 5, 000 = 1, 000 This deficiency is to be borne by A and B in their profit sharing ratio i.e. 3 : 2 Deficiency borne by A = 1, 000 x = 600 Deficiency borne by B = 1, 000 x =400 Therefore, Final Profit Share of A =15, 000 - 600 = 14, 400 Final Profit Share of B = 10, 000 - 400 =9, 600 Final Profit Share of C = 5, 000 + 1, 000 = 6, 000 Case (b) Profit and Loss Appropriation Account Dr Cr Particulars Rs. Particulars Rs. To Profit transferred to : By Profit and Loss A/c 30,000 A's Capital A/c 14,000 B's Capital A/c 10,000 C's Capital A/c 6,000 30,000 30,000 30,000 Working Notes : Deficiency in C's Profit Share = Rs.6,000 - Rs.5,000 = Rs.1,000 This deficiency is to be borne by A only Therefore. Final Profit Share of A = Rs.15,000 - Rs.1,000 = Rs.14,000 Final Profit Share of B = Rs.10,000 Final Profit Share of C = Rs.5,000 + Rs.1,000 = Rs.6,000 Case (c) Profit and Loss Appropriation Account Dr Cr Particulars Rs. Particulars Rs. To Profit transferred to : By Profit and Loss A/c 30,000 A's Capital A/c 15,000 B's Capital A/c 9,000 Cs Capital A/c 6,000 30,000 30,000 30,000 Working Notes: Deficiency in Cs Profit Share = Rs.6,000 - Rs.5,000 = Rs.1,000 This deficiency is to be borne by B only Therefore, Final Profit Share of A = Rs.15,000 Final Profit Share of B = Rs.10,000 - Rs.1,000 = 9,000 Final Profit Share of C = Rs.5,000 + Rs.1,000 = Rs.6,000 Case (d) Profit and Loss Appropriation Account Dr Cr Particulars Rs. Particulars Rs. To Profit transferred to : By Profit and Loss A/c 30,000 A's Capital A/c 14,250 B's Capital A/c 9,750 C's Capital A/c 6,000 30,000 30,000 30,000Deficiency in Cs Profit Share = 6,000 - 5000 = 1,000 This deficiency is to be bane by A and Bin the ratio of 3:1 Deficiency borne by A =1,000 x =750 Deficiency borne by B =1,000 x =250 Therefore, Final Profit Share of A = 15,000- 750 = 14,250 Final Profit Share of B =10,000 - 250= 9,750 Final Profit Share of C =5,000 + 1,000 =6,000 |
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