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, 2017 was Rs 36,000. Divide profit among the partners.

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Solution

Guarantee of Profit to the partners

Profit and Loss Appropriation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Profit transferred to

Profit and Loss

36,000

Amit’s Capital

18,000

Less: Gurantee to Samiksha

{2,000 × (3/5)}

(1,200)

16,800

Sumit’s Capital

12,000

Less: Gurantee to Samiksha

{2,000 × (2/5)}

(800)

11,200

Samiksha Capital

6,000

Add: Amit’s Guarantee

1,200

Add: Sumit’s Guarantee

800

8,000

36,000

36,000

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Similar questions

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.

X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3 : 2 : 1, respectively. Z’s share in the profit is guaranteed by X and Y to be a minimum of Rs 8,000. The net profit for the year ended March 31, 2017 was Rs 30,000. Prepare Profit and Loss Appropriation Account, indicating the amount finally due to each partner.

Q. Suresh, Sahil and Sumit are partners sharing profits in the ratio of

5 : 3 : 2

. During the year ended 31st March, 2018, the firm earned profit of

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. Prepare Profit and Loss Appropriation Account giving effect to the following:
(i) Each of the partner is to get remuneration of

R s . 60, 000

p.a.
(ii) Interest on Capital is to be allowed @

10 %

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R s . 5, 00, 000; R s .5, 00, 000

and

R s . 50, 000

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R s .10, 000

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R s . 20, 000

; and Sumit - Rs.

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after above appropriations.

Ashok, Brijesh and Cheena are partners sharing profits and losses in the ratio of 2 : 2 : 1. Ashok and Brijesh have guaranteed that Cheena share in any year shall be less than Rs 20,000. The net profit for the year ended March 31, 2017 amounted to Rs 70,000. Prepare Profit and Loss Appropriation Account.

Q. Amann, Babita and Suresh are partners in a firm. Their profit sharing ratio is 2:2:1. Suresh is guaranteed a minimum amount of Rs 10,000 as share of profit, every year. Any deficiency on that account shall be met by Babita. The profits for two years ending March 31, 2016 and March 31, 2017 were Rs 40,000 and Rs 60,000, respectively. Prepare the Profit and Loss Appropriation Account for the two years.

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Profit and Loss Appropriation Account
Dr.					Cr.
Particulars			Amount Rs	Particulars	Amount Rs
Profit transferred to				Profit and Loss	36,000
Amit’s Capital		18,000
Less: Gurantee to Samiksha {2,000 × (3/5)}		(1,200)	16,800

Sumit’s Capital		12,000
Less: Gurantee to Samiksha {2,000 × (2/5)}		(800)	11,200

Samiksha Capital	6,000
Add: Amit’s Guarantee		1,200
Add: Sumit’s Guarantee		800	8,000

			36,000		36,000