Question 90 Chapter 2 of Class 12 Part - 1 VK Publication

Question 70 Chapter 2 of Class 12 Part – 1

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The solution of Question 90 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

90. Ratan, Shyam and Seema are partners in a firm. They share profits in the ratio of 1:1:3. Seema is guaranteed a minimum profit of Rs. 20,000 p.a. Losses for the year ended is Rs. 50,000 before allowing salary to Ratan Rs. 2,500 and interest on loan to Shyam Rs. 10,000. Pass necessary journal entries and show ledgers for division of loss.

The solution of Question 90 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Account

For the year ended 31st March 2018

Particulars	Amount	Particular		Amount
To Net Loss	60,000	By Net Loss Transferred to:
[50,000+10,000(Interest on Shyam’s Loan)]		Ratan’s Capital A/c	12,000
		Shyam’s Capital A/c	12,000
		Seema’s Capital A/c	36,000	60,000
	60,000			60,000

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Journal Entry

Date	Particular		L . F	Dr. ₹	Cr. ₹
	Interest on Shyam’s Loan A/c	Dr.		10,000
	To Shyam’s Loan A/c				10,000
	(Being Interest provided on Shyam’s Loan)
	Profit and Loss A/c	Dr.		10,000
	To Interest on Shyam’s Loan A/c				10,000
	(Being interest on charged against P&L A/c)
	Ratan’s Capital A/c	Dr.		12,000
	Shyam’s Capital A/c	Dr.		12,000
	Seema’s Capital A/c	Dr.		36,000
	To Profit and Loss A/c				60,000
	(Being loss of Rs. 60,000 transferred to partners’ capital accounts)
	Ratan’s Capital A/c	Dr.		28,000
	Shyam’s Capital A/c	Dr.		28,000
	To Seema’s Capital A/c				56,000
	(Being deficiency of Seema’s share of profit bome by Ratan and Shyam in their profit sharing ratio)

Notes: (i) Seema’s share of lost is Rs. 36,000, but she is guaranteed a minimum profit of Rs. 20,000. So, she will be credited by Rs. 56,000 (36,000+20,000) and thus deficiency will be borne by Ratan and Shyam in their profit sharing ratio of 1:1, i.e., Rs. 28,000 by Ratan and Rs. 28,000 by Shyam (ii) Salary of Rs. 2,500 to Ratan will not be allowed in case of loss as Salary is appropriation of profit

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