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

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)

• 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