Question

5. A, B and C sharing profit and loss in the ratio 2:2:1. C was given guarantee of minimum 12000 profit by B. The Firm earns Rs 50000 profit. What will be B's share of profit ?
Rs. 20000
Rs. 10000
Rs. 22000
Rs. 18000​

Answer 1

Answer:

PROFIT AND LOSS APPROPRIATION ACCOUNT

Particulars Amount Particulars Amount

To Interest on capital

A= 50000*5%=2500

B=30000*5%=1500

C=20000*5%=1000 5000 By net profit 45000

To salary to

B= 5000

C=5000 10000

To profit T/f to

P's current A/c 15000

Q's current A/c 9000

R's current A/c 6000 30000

Total 45000 Total 45000

PARTNERS CAPITAL ACCOUNT

Particulars A B C Particulars A B C

To balance c/d 50000 30000 20000 By balance b/d 50000 30000 20000

Total 50000 30000 20000 Total 50000 30000 20000

PARTNERS CURRENT ACCOUNT

Particulars A B C Particulars A B C

To drawings

10000 7500 6000 By bal b/d 4500 1500 1000

By Interest on capital 2500 1500 1000

By bal c/d 12000 9500 7000 By Salaries 5000 5000

P/L Appropriation A/c 15000 9000 6000

Total 22000 17000 13000

Answer 2

Answer:

PROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars Amount To Interest on capital

A= 50000*5%=2500

B=30000*5%=1500

C=20000*5%=1000 5000 By net profit 45000 To salary to

B= 5000

C=5000 10000   To profit T/f to

P's current A/c 15000

Q's current A/c 9000

R's current A/c 6000 30000   Total 45000 Total 45000                              PARTNERS CAPITAL ACCOUNT

 Particulars A B C Particulars A B C To balance c/d 5000030000 20000  By balance b/d 50000 30000 20000 Total 50000 3000020000  Total 5000030000  20000                               PARTNERS CURRENT ACCOUNT Particulars A B C Particulars A B C To drawings

100007500 6000  By bal b/d4500 15001000      By Interest on capital 2500 1500 1000 By bal c/d12000 9500  7000 By Salaries  5000 5000     P/L Appropriation A/c 15000 90006000  Total 22000 1700013000