A, B and C were in partnership sharing profits and losses In the ratio of 4 : 2 : 1 respectively. It was provided that C's share in profit for a year would not be less than Rs. 7,500. The profit for the year ended 31st March, 2018 amounted to Rs. 31,500; You are required to show the appropriation among the partners The Profit and Loss Appropriation Account is not required.

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Solution

Calculation of share of profit
Particulars A B C
Share of Profit 18000
(31500 4)/7 9000
(315002)/7 4500
(315001)/7
Less: Deficiency 2000
(3000 2)/3 1000
(3000*1)/3 Nil
Add: Share from partners Nil Nil 3000
Total 16000 8000 7500
Note :
C's guranteed profit was Rs. 7500, as per profit sharing ration C is getting Rs. 4500. Therefore remaining Rs. 3000 is given to C by A and B in their profit sharing ratio.

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Particulars	A	B	C
Share of Profit	18000 (31500 *4)/7	9000 (31500*2)/7	4500 (31500*1)/7
Less: Deficiency	2000 (3000 * 2)/3	1000 (3000*1)/3	Nil
Add: Share from partners	Nil	Nil	3000
Total	16000	8000	7500