Question

X, Y and Z are partners sharing profit and loss in the ratio of 3:2:1. Y has been given guarantee by X and Z to get Minimum profit of Rs 50,000. If total profit of the firm is Rs
3, 00,000. Distribute the profit.​

Answer 1

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Answer 2

Explanation:

Notes:- The profit sharing ratio is 3:2:1. Z has been guaranteed a profit of 30,000.The deficiency of 2000 will be contributed by X and Y in the ratio of 3:2.

PROFIT AND LOSS APPROPRIATION ACCOUNT

Particulars Amount Particulars Amount

To Profit T/f to:

X's capital - 84,000

Less:Z's Deficiency (1200) 82,800 By net profit 1,50,000

Y's capital - 56,000

Less:- (800) 55,200 By Y's capital A/c

(50,000-32,000) 18,000

Z's capital A/c 28,000

Add:-X's share 1200

Y's share 800

30,000

Total 1,68,000 Total 1,68,000