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

Question 78 Chapter 2 of +2-A
Question No.78 - Chapter No.2 - T.S. Grewal +2 Book 2019-Solution

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Question 78 Chapter 2 of +2-A

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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
AmountAssets
Amount
   By Profit and Loss A/c54,000
To Profit Transferred to *2    
A’s Capital A/c26,400   
B’s Capital A/c17,600   
C’s Capital A/c10,000 54,000  
  54,000  54,000

Working Note: –

C will get higher of the two:

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

 54,000X1 
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 Profit44,000X3
5

A’s Share of Profit =  26,400

B’s Share of Profit44,000X2
5

B’s Share of Profit = 17,600

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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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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