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Vikas and Vivek were partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2017, they admitted Vandana as a new partner for 1/8th share in the profits with a guaranteed profit of ₹ 1,50,000. The new profit-sharing ratio between Vikas and Vivek will remain same but they decided to bear any deficiency on account of guarantee to Vandana in the ratio 3 : 2. The profit of the firm for the year ended 31st March, 2018 was ₹ 9,00,000. Prepare Profit and Loss Appropriation Account of Vikas, Vivek and Vandana for the year ended 31st March, 2018. |
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Answer» n: Profit and Loss APPROPRIATION Account for the year ended 31" March 18 Dr CrParticulars Rs. Particulars Rs. To Profit transferred to : By Profit and Loss A/c 9,00,000 Vikas's Capital A/c 4,57,500 Vivek's Capital A/c 2,92,500 Vandana's Capital A/c 1,50,000 9,00,000 900000 900000 Working NOTES: Profit Share on Vandana's = 9,00,000 x =1,12,500 Remaining Profit = Rs.9,00,000 - Rs.1,12.500 = Rs.7,87,500 Profit on Vikas's Share = 7,87,500 x = 4,72,500 Profit on Vivek's Share = 7, 87,500 x =3,15, 000 Minimum GUARANTEED Profit Vandana = Rs.1,50,000 DEFICIENCY = 37,500 (1.50,000 - 1,12,500) Deficiency to borne by Vikas and Vivek in the ratio =2:3 Vikas's - 37, 500 x = 15, 000 Vivek's - 37 500 x = 22 500 Profit of Vikas after ADJUSTING after deficiency = Rs.4,72,500 - Rs.15,000 = Rs.4,57,500 Profit on Vivek after adjusting after deficiency = Rs.3,15,000 - Rs.22,500 = Rs.2,92,500 |
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