Question 78 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 78 Chapter 2 of +2-A

Question 78 Chapter 2 of +2-A

78. A and B are partners sharing profits in the ratio of 3: 2. C was admitted for 1/6th share of profit with a minimum guaranteed amount of 10,000. At the close of the first financial year, the firm earned a profit of 54,000. Find out the share of profit which A, B and C will get.

The solution of Question 78 Chapter 2 of +2-A

:

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
      By Profit and Loss A/c 54,000
To Profit Transferred to *2        
A’s Capital A/c 26,400      
B’s Capital A/c 17,600      
C’s Capital A/c 10,000 54,000    
    54,000     54,000

 


Working Note: –

 

 

C will get higher of the two:

i Share of Profit as per profit sharing ratio, i.e.,

  54,000 X 1  
6  

= 9,000

ii Minimum guaranteed profit, i.e. Rs 10,000

Thus from a net profit of Rs 54,000, minimum guaranteed profit to C of Rs 10,000 is to be adjusted first. And the balance profit of Rs 44,000 54, 000– 10, 000 is to be shared by A and B in the ratio 3:2

A’s Share of Profit 44,000 X 3
5

A’s Share of Profit =  26,400

B’s Share of Profit 44,000 X 2
5

B’s Share of Profit = 17,600


C’s Share of Profit = 10,000 (minimum guaranteed 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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 78 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.