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प्रश्न
Jay, Vijay, and Karan were partners of an architect firm sharing profits in the ratio of 2: 2: 1. Their partnership deed provided the following:
(i) A monthly salary of ₹ 15,000 each to Jay and Vijay.
(ii) Karan was guaranteed a profit of ₹ 5,00,000 and Jay guaranteed that he will earn an annual fee of ₹ 2,00,000. Any deficiency arising because of guarantee to Karan will be borne by Jay and Vijay in the ratio of 3: 2.
During the year ended 31st March 2018 Jay earned a fee of ₹ 1,75,000 and the profits of the firm amounted to ₹ 15,00,000. Showing your workings clearly prepare Profit and Loss Appropriation Account and the Capital Account of Jay, Vijay, and Karan for the year ended 31st March 2018.
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उत्तर
Profit and Loss Appropriation Account
| Dr. | For the year ended 31st March 2018 | Cr. | |
| Particulars |
Amount(₹)
|
Particulars | Amount(₹) |
| To Salary to be credited to Capital Accounts of : |
|
By Profit for the year | 15,00,000 |
|
Jay - 1,80,000 |
|
By Jay's Capital A/c | 25,000 |
| Vijay - 1,80,000 |
3,60,000 |
(2,00,000 – 1,75,000) | |
|
|
|||
| To divisible profit to be credited to Capital Accounts of : (WN 1) |
|
||
| Jay - 3,05,800 |
|
||
| Vijay - 3,59,200 |
|
||
| Karan - 5,00,000 |
11,65,000 |
||
|
15,25,000 |
15,25,000 |
||
Working Note 1:
Computation of divisible profit and its distribution between partners
Divisible Profit = 11,65,000
Jay’s share in divisible profit = `11,65,000 xx (2)/(5) = 4,66,000`
Vijay’s share in divisible profit = `11,65,000 xx (2)/(5) = 4,66,000`
Karan’s share in divisible profit = `11,65,000 xx (1)/(5) = 2,33,000`
Profit share guaranteed to Karan = 5,00,000
Deficiency to Karan’s share in profit = 5,00,000 – 2,33,000 = 2,67,000
Deficiency to be borne by Jay = `2,67,000 xx (3)/(5) = 1,60,200`
Deficiency to be borne by Vijay = `2,67,000 xx (2)/(5) = 1,06,800`
Final Share in Divisible Profit for:
Jay = 4,66,000 – 1,60,200 = 3,05,800
Vijay = 4,66,000 – 1,06,800 = 3,59,200
Karan = 2,33,000 + 1,60,200 + 1,06,800 = 5,00,000
| Dr. | Partner’s Capital A/c | Cr. | |||||||
| Date | Particulars |
Jay(₹) |
Vijay(₹) |
Karan(₹) | Date | Particulars | Jay(₹) | Vijay(₹) | Karan(₹) |
| 2018 Mar. 31 |
To Profit & Loss Appropriation A/c |
25,000 |
|
2018 Mar.31 |
By Profit & Loss Appropriation A/c (Salary) | 1,80,000 | 1,80,000 | ||
|
|
|
||||||||
| 2018 Mar.31 |
To balance c/d | 4,60,800 |
5,39,200 |
5,00,000 | 2018 Mar.31 |
By Profit & Loss Appropriation A/c (Divisible profits) | 3,05,800 | 3,59,200 | 5,00,000 |
| 4,85,800 |
5,39,200 |
5,00,000 |
4,85,800 |
5,39,200 | 5,00,000 | ||||
