Question

Amit, Sumit and Samiksha are in partnership sharing profits in the ratio of 3 : 2 : 1. Samiksha share in profit has been guaranteed by Amit and Sumit to be a minimum sum of Rs 8,000. Profits for the year ended March 31, 2006 was Rs 36,000. Divide profit among the partners.

Answer 1

$\begin{array}{cccccccccccccc}\text{Dr}& & & & & & \text{Profit and Loss Appropriation Account}& & & & & & & \text{Cr}\end{array}$

$\begin{array}{cccccc}\text{Particulars}& & \text{Amt. (Rs)}& \text{Particulars}& & \text{Amt. (Rs)}\\ \text{Interest on Capital}& & & \text{Profit and Loss}& & 36,000\\ \text{Amit's Capital A/c}& 18,000& 16,800& & & \\ & \underset{–}{(-)(1,200)}& & & & \\ \text{Sumit's Capital A/c}& 12,000& & & & \\ & \underset{–}{(-)\left(800\right)}& 11,200& & & \\ \text{Samiksha's Capital A/c}& 6,000& & & & \\ \text{Amit's Guarantee}& (+)1,200& & & & \\ \text{Sumit's Guarantee}& \underset{–}{(+)800}& \underset{–}{8,000}& & & \\ & & \underset{–}{\underset{–}{36,000}}& & & \overline{\underset{–}{\underset{–}{36,000}}}\end{array}$

Note Amit's guarantee $=2,000\times \frac{3}{5}=Rs1,200$

Sumit's guarantee $=2,000\times \frac{2}{5}=Rs800$