Profit and Loss Appropriation Account 

Dr. 


Cr. 

Particulars 
Amount (₹) 
Particulars 
Amount (₹) 

Profit transferred to: 

Profit and Loss A/c 
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 





Profit = Rs 30,000
Profit sharing ratio = 3 : 2 : 1
C is given a guarantee of minimum profit of Rs 6,000
Deficiency in C’s Profit Share = 6,000 − 5,000 = Rs 1,000
This deficiency is to be borne by A and B in their profit sharing ratio i.e. 3 : 2
Therefore,
Final Profit Share of A = 15,000 − 600 = Rs 14,400
Final Profit Share of B = 10,000 − 400 = Rs 9,600
Final Profit Share of C = 5,000 + 1,000 = Rs 6,000
Case (b)
Profit and Loss Appropriation Account 

Dr. 


Cr. 

Particulars 
Amount (₹) 
Particulars 
Amount (₹) 

Profit transferred to: 

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 





Deficiency in C’s Profit Share = 6,000 − 5,000 = Rs 1,000
This deficiency is to be borne by A only.
Therefore,
Final Profit Share of A = 15,000 − 1,000 = Rs 14,000
Final Profit Share of B = 10,000
Final Profit Share of C = 5,000 + 1,000 = Rs 6,000
Case (c)
Profit and Loss Appropriation Account 

Dr. 


Cr. 

Particulars 
Amount (₹) 
Particulars 
Amount (₹) 

Profit transferred to: 

Profit and Loss A/c 
30,000 

A’s Capital A/c 
15,000 



B’s Capital A/c 
9,000 



C’s Capital A/c 
6,000 
30,000 



30,000 

30,000 





Deficiency in C’s Profit Share = 6,000 − 5,000 = Rs 1,000
This deficiency is to be borne by B only.
Therefore,
Final Profit Share of A = 15,000
Final Profit Share of B = 10,000 − 1,000 = Rs 9,000
Final Profit Share of C = 5,000 + 1,000 = Rs 6,000
Case (d)
Profit and Loss Appropriation Account 

Dr. 


Cr. 

Particulars 
Amount (₹) 
Particulars 
Amount (₹) 

Profit transferred to: 

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 

30,000 





Deficiency in C’s Profit Share = 6,000 − 5,000 = Rs 1,000
This deficiency is to be borne by A and B in the ratio of 3 : 1.
Therefore,
Final Profit Share of A = 15,000 − 750 = Rs 14,250
Final Profit Share of B = 10,000 − 250 = Rs 9,750
Final Profit Share of C = 5,000 + 1,000 = Rs 6,000