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