Question

Amit, Sumit and Samiksha are in partnership sharing profits in the ratio of 3:2:1. Samiksha’ share in profit has been guaranteed by Amit and Sumit to be a minimum sum of Rs 8,000. Profits for the year ended March 31, 2017 was Rs 36,000. Divide profit among the partners.

Answer 1

Guarantee of Profit to the partners

Profit and Loss Appropriation Account

Dr.                                                                                     Cr.

Particulars				Amount Rs	Particulars		Amount Rs
Profit transferred to					Profit and Loss		36,000
Amit’s Capital			18,000	16,800
Less: Gurantee to Samiksha  {2,000 × (3/5)}			(1,200)
Sumit’s Capital			12,000	11,200
Less: Gurantee to Samiksha  {2,000 × (2/5)}			(800)
Samiksha Capital		6,000		8,000
Add: Amit’s Guarantee			1,200
Add: Sumit’s Guarantee			800
				36,000			36,000