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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Nimrat, Maira and Kabir are partners sharing profits in the ratio of 2 : 2 : 1. Nimrat is guaranteed a minimum profit of ₹1,60,000 per annum. Net profit for the year ended 31st March, 2025 is ₹1,00,000. Prepare the Profit & Loss Appropriation Account for the year.
Profit & Loss Appropriation Account (for the year ended 31st March, 2025)
| Particulars (Dr.) | ₹ | Particulars (Cr.) | ₹ |
|---|---|---|---|
| To Nimrat’s Capital A/c (guaranteed profit) | 1,60,000 | By Profit & Loss A/c (Net Profit) | 1,00,000 |
| By Loss transferred to Capital A/cs: | |||
| Maira | 40,000 | ||
| Kabir | 20,000 | ||
| Total | 1,60,000 | Total | 1,60,000 |
Working Note: Nimrat’s guaranteed ₹1,60,000 exceeds the profit of ₹1,00,000 by ₹60,000, which is borne by Maira and Kabir in their ratio 2 : 1 → Maira ₹40,000, Kabir ₹20,000.
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.82 - 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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