12. P and Q were partners in a firm. PSR 5:3 on 1 April 2019. They admitted R as a new partner for 1/6th
share in profits with guaranteed profit of Rs 75,000. The profit sharing ratio between p and Q will
remain same. But they agreed to bear deficiency on account of guarantee to R in the ratio 3: 2. The
profit of the firm for the year ended 31" march 2020 was Rs 4,00,000
Prepare profit and loss appropriation A/c.
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Explanation:
Calculation of New profit sharing Ratio
Let total share be 1.
Share of incoming partner= 1-1/8=7/8
P's New Share= 7/8*5/8=35/64
Q's New Share =7/8*3/8=21/64
R's share = 8/64
Share of partners in profit :
P's share=4,00,000*35/64=2,18,750
Q's share=4,00,000*21/64=1,31,250
R's share=4,00,000*8/64=50,000
R's share of deficiency i.e 25,000 is to be borne by P and Q in the ratio of 3:2.
PROFIT AND LOSS APPROPRIATION ACCOUNT
Particulars Amount Particulars Amount
To profit transferred to :
P's capital A/c 2,18,750
Less:R's share (15,000)
Q's capital A/c 1,31,250
Less:R's share (10,000)
R's capital A/c 50,000
Add:share from P&Q 25,000 4,00,000 By net profit 4,00,000
Total 4,00,000+25000
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