Question

Vinod, Mukesh and Shiv are partners sharing profits in the ratio of 3:2:1. Their capitals on
1st April 2019 were Rs. 5,00,000; Rs.3,00,000 and Rs.2,00,000 respectively. As per the
partnership deed partners are entitled to 10% p.a interest on capital Shiv is guaranteed a
minimum profit of Rs.45,000 p.a. deficiency (if any) will be borne by Vinod and Mukesh in
the ratio of 3:2.
The firm incurred a loss of Rs. 90,000 for the year ended 31st March 2020. Give necessary
entries giving effect to the minimum guaranteed profit to Shiv.​

Answer 1

Answer:

Vinod' capital. account dr 45000

Mukesh 'capital account dr 30000

Shiv 'capital account. dr. 15000

To Profit & loss account. 90000

Vinod 'capital account. dr 36000

Mukesh 'capital account dr 24000

To Shiv 'capital account. 60000

Explanation:

Shiv guaranteed minimum profit of 45000

but he share in loss of 15000 so his deficiency is 45000 + 15000= 60000 will borne by Vinod and Mukesh in ratio 3:2

As there is loss in firm do interest on capital is not allowed