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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Asha, Disha and Raghav were partners in a firm sharing profits in the ratio of 2 : 3 : 1. According to the partnership agreement, Raghav was guaranteed an amount of ₹40,000 as his share of profits. The net profit for the year ended 31st March, 2022 amounted to ₹1,20,000. Prepare the Profit & Loss Appropriation Account for the year ended 31st March, 2022. (CBSE 2024)
Profit & Loss Appropriation Account (for the year ended 31st March, 2022)
| Particulars (Dr.) | ₹ | Particulars (Cr.) | ₹ |
|---|---|---|---|
| To Profit transferred to Capital A/cs: | By Profit & Loss A/c (Net Profit) | 1,20,000 | |
| Asha | 32,000 | ||
| Disha | 48,000 | ||
| Raghav | 40,000 | ||
| Total | 1,20,000 | Total | 1,20,000 |
Working Note: Normal shares (2 : 3 : 1) = Asha ₹40,000, Disha ₹60,000, Raghav ₹20,000. Raghav’s deficiency = ₹40,000 – ₹20,000 = ₹20,000, borne by Asha and Disha in 2 : 3 → Asha ₹8,000, Disha ₹12,000.
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.77 - 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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