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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A, B and C were in partnership sharing profits and losses in the ratio of 4 : 2 : 1. It was provided that C’s share in profit for a year would not be less than ₹75,000. Profit for the year ended 31st March, 2025 amounted to ₹3,15,000. Show the appropriation among the partners.
Appropriation of Profit
| Particulars | A (₹) | B (₹) | C (₹) |
|---|---|---|---|
| Profit in 4 : 2 : 1 | 1,80,000 | 90,000 | 45,000 |
| Deficiency in C’s share, borne by A and B in 2 : 1 | (20,000) | (10,000) | 30,000 |
| Final Share | 1,60,000 | 80,000 | 75,000 |
Working Note: C’s normal share = ₹3,15,000 × 1/7 = ₹45,000. Guaranteed ₹75,000, so deficiency = ₹30,000, borne by A and B in their ratio 4 : 2 (= 2 : 1) → A ₹20,000, B ₹10,000.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 1 Q.76 - Accounting for Partnership Firm Fundamentals", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Accounting for Partnership Firm – Fundamentals.
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