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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ashmit, Abbas and Karman are partners sharing profits in the ratio of 3 : 2 : 1. Abbas is guaranteed a minimum profit of ₹1,50,000 per annum. The firm incurred a loss for the year ended 31st March, 2025 of ₹30,000. How much deficiency will Ashmit bear for the year? 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 Profit & Loss A/c (Loss transferred) | 30,000 | By Loss transferred to Capital A/cs: | |
| To Abbas’s Capital A/c (guaranteed profit) | 1,50,000 | Ashmit | 1,35,000 |
| Karman | 45,000 | ||
| Total | 1,80,000 | Total | 1,80,000 |
Working Note: Abbas must receive ₹1,50,000 despite the firm’s loss of ₹30,000. The total ₹1,80,000 (₹1,50,000 + ₹30,000) is borne by Ashmit and Karman in their ratio 3 : 1 → Ashmit ₹1,35,000 and Karman ₹45,000. Ashmit bears a deficiency of ₹1,35,000.
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.83 - 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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