Question 84 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 84 Chapter 2 of +2-A

Question 84 Chapter 2 of +2-A

84. A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They earned a profit of
30,000 during the year ended 31st March, 2019. Distribute profit among A, B and C if:
a C’s share of profit is guaranteed to be 6,000 Minimum.
b Minimum profit payable to C amounting to 6,000 is guaranteed by A.
c Guaranteed minimum profit of 6,000 payable to C is guaranteed by B.
d Any deficiency after making payment of guaranteed 6,000 will be borne by A and B in the ratio of 3 : 1.

The solution of Question 84 Chapter 2 of +2-A

:

 

Case A

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
      By Profit and Loss A/c 30,000
To Profit Transferred to *2        
A’s Capital A/c 14,400      
B’s Capital A/c 9,600      
C’s Capital A/c 6,000 30,000    
    30,000     30,000

 

 


Working Note: –

*1Calculation of distribution of Profits for the among the partners
Profit for year = 30,000
Profit-sharing ratio = 3: 2: 1
C is given a guarantee of a minimum profit of Rs 6,000
Anshu admitted for share = 1/6th share in profits

 

A’s Share of Profit 30,000 X 3
6

A’s Share of Profit = 15,000

B’s Share of Profit 30,000 X 2
6

B’s Share of Profit  = 10,000

C’s Share of Profit 30,000 X 2
6

C’s Share of Profit = 5,000


C’s Actual Profit Share i. e. Rs 5,000 is less than his Minimum Guaranteed Profit i. e. Rs 6,000
Deficiency in C’s Profit Share= 6,000 − 5,000= Rs 1,000
This deficiency is to be borne by A and B in their profit sharing ratio i.e. 3: 2
This deficiency is to be borne by A and B in their profit sharing ratio i. e. 3: 2




A’s Share of Profit 1,000 X 3
5

A’s Share of Profit= 600

B’s Share of Profit 1,000 X 2
5

B’s Share of Profit= 400

Now, Final distributed among the partners

A’s Share of Profit = 15,000 600 =14,400
B’s Share of Profit = 10,000 400 =9,600
C’s Share of Profit = 5,000 + 1,000 =6,000

 

Case B

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
      By Profit and Loss A/c 30,000
To Profit Transferred to *2        
A’s Capital A/c 14,000      
B’s Capital A/c 10,000      
C’s Capital A/c 6,000 30,000    
    30,000     30,000

 

C’s Actual Profit Share i.e. Rs 5,000 is less than his Minimum Guaranteed Profit i. e. Rs 6,000
Deficiency in C’s Profit Share = 6,000 − 5,000 = Rs 1,000
This deficiency is to be borne by A

Now, Final distributed among the partners

A’s Share of Profit = 15,000 1,000 =14,000
B’s Share of Profit = 10,000 0 =10,000
C’s Share of Profit = 5,000 + 1,000 =6,000

 

Case C

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
      By Profit and Loss A/c 30,000
To Profit Transferred to *2        
A’s Capital A/c 15,000      
B’s Capital A/c 9,000      
C’s Capital A/c 6,000 30,000    
    30,000     30,000

C’s Actual Profit Share i.e. Rs 5,000 is less than his Minimum Guaranteed Profit i. e. Rs 6,000
Deficiency in C’s Profit Share = 6,000 − 5,000 = Rs 1,000

This deficiency is to be borne by B

Now, Final distributed among the partners

A’s Share of Profit = 15,000 0 =15,000
B’s Share of Profit = 10,000 1,000 =9,000
C’s Share of Profit = 5,000 + 1,000 =6,000

 

Case  d

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
      By Profit and Loss A/c 30,000
To Profit Transferred to *2        
A’s Capital A/c 14,250      
B’s Capital A/c 9,750      
C’s Capital A/c 6,000 30,000    
    30,000     30,000

 

C’s Actual Profit Share i.e. Rs 5,000 is less than his Minimum Guaranteed Profit i. e. Rs 6,000
Deficiency in C’s Profit Share= 6,000 − 5,000= Rs 1,000
This deficiency is to be borne by A and B in ratio i.e. 3: 1

A’s Share of Profit 1,000 X 3
4

A’s Share of Profit= 750


B’s Share of Profit 1,000 X 2
4

B’s Share of Profit= 250

A’s Share of Profit = 15,000 750 =14,250
B’s Share of Profit = 10,000 250 =9,750
C’s Share of Profit = 5,000 + 1,000 =6,000

 

 

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)

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 84 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

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