FUNDAMENTALS OF PARTNERSHIP FIRM TS GREWAL (2022-23) CBSE

QUESTION: 81

Ashmit, Abbas and Karman are partners sharing profits in the ratio of 3:2:1.Abbas is guaranteed minimum profit of ₹1,50,000 per annum. The firm incurred loss for the year ended 31st March, 2022 of ₹30,000.

Prepare Profit & Loss Appropriation Account for the year.

Answer:

Working notes:

Note: Loss will be borne by Ashmit and Karman in  3:1, Since Abbas is guaranteed minimum share of profit of 1,50,000.

Ashmit = 1,80,000×3÷4= 1,35,000

Karman = 1,80,000×1÷4= 45,000