Q.No.92 | Chapter 2 – Accounting for Partnership Firms: Fundamentals | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Liabilities		Amount	Assets		Amount
			By Profit and Loss A/c		75,000
			By B's Capital A/c (Deficiency in Revenue)		9,000
To Profit Transferred to *2
A's Capital A/c	41,400
B's Capital A/c	27,600
C's Capital A/c	15,000	84,000
		84,000			84,000

Profit Already credited

Profit of the year =84,000
Profit-sharing Ratio =3 : 2: 1

A's Share of Profit	84,000	X	3
			6

A's Share of Profit= 42,000

B's Share of Profit	84,000	X	2
			6

B's Share of Profit = 28,000

C's Share of Profit	84,000	X	1
			6

C's Share of Profit = 14,000

C’s Minimum Guaranteed Profit = Rs 15,000
C’s Actual Profit Share i.e. 14,000 is less than his Minimum Guaranteed Profit i.e. 15,000
Deficiency in Alia’s Profit Share = 15,000 − 14,000= Rs 1,000
This deficiency of Rs 20,000 is to be borne by A and B in the ratio of 3: 2

A's Share of Profit	1,000	X	3
			5

A's Share of Profit  = 600

B's Share of Profit	1,000	X	2
			5

B's Share of Profit  = 400

Now, Final distributed among the partners

A’s Share of Profit	=	42,000	-	600	=41,400
B's Share of Profit	=	28,000	-	400	=27,600
C’s Share of Profit	=	14,000	+	1,000	=15,000

Note: - In the book, they have shown the net share of final profit to B is Rs 18,600 (27,600- 9,000), So, we have shown it in the solution of Rs 27,600. The deficiency of Rs 9,000 that was guaranteed by B to the firm would not be deducted from his share as he is bearing it in the form of profit.

Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

 

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