Question

Sandesh and kailash share profit and losses in the ratio of 2:1 from April 1 2015 they admit basavesh into their firm who is to be given a share of 1/10ofthe profit with a guaranteed minimum of 50000 sandesh and kailesh continue to share profit as before but agree to bear any deficiency on a/c of guarantee to basavesh in to ratio of 3:2 respectively The profit to the firm for year ending March 31 2016 amounted to 240000 prepare profit and loss appropriation a/c

Answer 1

Answer:

there is no any need to give 50,000 for basvesh

I hope it's helpful to you ☺️☺️

Answer 2

Answer: The profits for the partners Sandesh, Kailash, and, Basavesh are Rs.128400, Rs.61600, and Rs.50000, respectively.

Explanation:

Given:

The profit-sharing ratio between Sandesh and Kailash= 2:1
Share of newly admitted partner, Basavesh= 1/10th
The new profit-sharing ratio of the partners= 18:9:3
Minimum guarantee of profits to Basavesh= Rs.50000
Deficiency to be borne by Sandesh and Kailash in= 3:2
Profit for the year= Rs.240000

Now, the share of profits for partners based on their profit-sharing ratio is:

Sandesh= $\frac{18}{30}$×$240000$
= Rs.144000
Kailash= $\frac{9}{30}$×$240000$
= Rs.72000
Basavesh= $\frac{3}{30}$×$240000$
= Rs.24000

Now, since Basavesh is guaranteed a minimum profit of Rs.50000
Sandesh and Kailash would bear the deficiency in 3:2

Deficiency= 50000-24000
= Rs.26000
∴ Sandesh pays $\frac{3}{5}th$ $of$$26000$ Basavesh
= $\frac{3}{5}$×$26000$
= Rs.15600
Similarly, Kailash pays $\frac{2}{5} th$ $of$$26000$ Basavesh
= $\frac{2}{5}$×$26000$
= Rs.10400

∴ The final share of profits for the partners are:

Sandesh= Rs.128400
Kailash= Rs.61600
Basavesh= Rs.50000