# Question 83 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 83 Chapter 2 of +2-A

83. Pranshu and Himanshu are partners sharing profits and losses in the ratio of 3: 2 respectively. They admit Anshu as a partner with 1/6 share in the profits of the firm. Pranshu personally guaranteed that Anshu’s share of profit would not be less than 30,000 in any year. The net profit of the firm for the ear ending 31st March 2013 was 90,000.
Prepare Profit and Loss Appropriation Account.

The solution of Question 83 Chapter 2 of +2-A

:

 Balance Sheet (for the year ended 31st March 2019) Liabilities Amount Assets Amount By Profit and Loss A/c 90,000 To Profit Transferred to *2 Pranshu’s Capital A/c 30,000 Himanshu’sCapital A/c 30,000 Anshu’s Capital A/c 30,000 90,000 90,000 90,000

Working Note: –

*1 Calculation of New Profit Sharing Ratio
Old Profit Sharing Ratio = 3 : 2
Let assume the total share of the firm is equal to Re 1
Anshu admitted for share = 1/6th share in profits

 Remaining share for Old Partners’ = 1 – 1 6
 6 – 1 6
 5 6
 Pranshu’s New Profit share = 5 X 3 6 5

 Pranshu’s New Profit share = 15 30

Himanshu’s New Profit share

 Himanshu’s New Profit share = 5 X 2 6 5
 Pranshu’s New Profit share = 10 30
 Himanshu’s New Profit share = 1 X 5 6 5

 Pranshu’s New Profit share = 5 30

Old Profit Sharing Ratio =15: 10: 5
New Profit Sharing Ratio= 3: 2: 1

Calculation of New Profit share among the partners’

 Pranshu’s Share of Profit = 90,000 X 3 6

Pranshu’s Share of Profit = 45,000

 Himanshu’s Share of Profit = 90,000 X 2 6

Himanshu’s Share of Profit =30,000

 Anshu’s Share of Profit = 90,000 X 1 6

Anshu’s Share of Profit= 15,000

Anshu’s Minimum Guaranteed Profit = Rs 30,000
Anshu’s Actual Profit Share i.e. 15,000 is less than his Minimum Guaranteed Profit i.e. 30,000
Deficiency in Anshu’s Profit Share == 30,000 − 15,000 = Rs 15,000
This deficiency of Rs 15,000 is to be borne by Pranshu’s

Now, Final distributed among the partners

 Pranshu’s Share of Profit = 45,000 – 15,000 =30,000 Himanshu’s Share of Profit = 30,000 – 0 =30,000 Anshu’s Share of Profit = 15,000 + 15,000 =30,000

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

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