Question 85 Chapter 2 of Class 12 Part - 1 VK Publication

Question 85 Chapter 2 of Class 12 Part – 1

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The solution of Question 85 Chapter 2 of Class 12 Part – 1: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

85. Aman, Babita and Suresh are partners in a firm. Their profit sharing ratio is 2:2:1, Suresh is guaranteed a minimum amount of Rs. 10,000 as share of profit every year. Any deficiency on that account shall be met by Babita. The profits for two years ending 31st March, 2017 and 31st March, 2018 were Rs. 40,000 and Rs. 60,000, respectively. Prepare the Profit and Loss Appropriation Account for the two years.

The solution of Question 85 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

For the year ended 31st March 2017

Particulars		Amount	Particular	Amount
To Profit Transferred To Capital A/C’s			By Profit And Loss A/c	40,000
Aman		16,000
Babita	16,000
Less: Deficiency of Suresh	4,000	14,000
Suresh	8,000
Add: from Babita	2,000	10,000
		40,000		40,000

Profit and Loss Appreciation Account

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For the year ended 31st March 2017

Particulars		Amount	Particular	Amount
To Profit Transferred To Capital A/C’s			By Profit And Loss A/c	60,000
Aman	24,000
Babita	24,000
Suresh	12,000	60,000
		60,000		60,000