You visited us 57 times! Enjoying our articles? Unlock Full Access!

Byju's Answer

Standard XII

Accountancy

Salary/Commission

X , Y and Z a...

Question

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.

Open in App

Solution

Profit and Loss Appropriation Account as on March 31, 2017

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Profit transferred to

Profit and Loss

30,000

X’s Capital

15,000

Less: Z’s Deficiency {3,000 × (3/5)}

(1,800)

13,200

Y’s Capital

10,000

Less: Z’s Deficiency {3,000 × (2/5)}

(1,200)

8,800

Z’s Capital

5,000

Add: Share of Deficiency born by

Radha

1,800

Mary

1,200

8,000

30,000

30,000

Suggest Corrections

Similar questions

X, Y

and

Z

entered into partnership on 1st July, 2016 to share Profit and Losses in the ratio of

3 : 2 : 1

X

personally guaranteed that

Z^{'} s

share of profit after charging interest on capital @

6 %

per annum would not be less than

R s . 36, 000

p.a. The capital contributed by :

X - R s . 2, 00, 000; Y - R s . 1, 00, 000

and

Z - R s . 1, 00, 000

. Profit for the year ended on 31st March, 2017 was

R s . 1, 38, 000

. Prepare Profit and Loss Appropriation Account.

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.

X, Y

and

Z

are partners in a firm. Their profit sharing ratio is

5 : 3 : 2

Z

is guaranteed a minimum profit of

R s . 10, 000

every year. Any deficiency arising is to be met by

Y

. The profits for the two years ended 31st March, 2017 and 2018 were

R s . 40, 000

and

R s . 60, 000

respectively. Prepare Profit and Loss Appropriation Account for the two years.

Q. Pranshu and Himanshu are partners sharing profits and losses in the ratio of 3 :2 respectively. They admit Arishu as partner with 1/6th share in the profits of the firm. Pranshu personally guaranteed that Anshu's share of Profit would not be less than Rs. 30,000 in any year. The net profit of the firm for the year ending 31st March, 2013 was Rs. 90,000. Prepare Profit and Loss Appropriation Account

Abhay, Siddharth and Kusum are partners in a firm, sharing profits in the ratio of 5:3:2. Kusum is guaranteed a minimum amount of Rs 10,000 as per share in the profits. Any deficiency arising on that account shall be met by Siddharth. Profits for the years ending March 31, 2016 and 2017 are Rs 40,000 and 60,000 respectively. Prepare Profit and Loss Appropriation Account.

Join BYJU'S Learning Program

Profit and Loss Appropriation Account as on March 31, 2017
Dr.					Cr.
Particulars			Amount Rs	Particulars	Amount Rs
Profit transferred to				Profit and Loss	30,000
X’s Capital	15,000
Less: Z’s Deficiency {3,000 × (3/5)}	(1,800)		13,200

Y’s Capital	10,000
Less: Z’s Deficiency {3,000 × (2/5)}	(1,200)		8,800

Z’s Capital		5,000
Add: Share of Deficiency born by
Radha		1,800
Mary		1,200	8,000

			30,000		30,000