Question

X, Y and Z are partners sharing profit in 5: 4 : I ratio. Z is guaranteed of minimum profit of

80,000. His share of deficiency will be borne by X and Y in 3:2 ratio. Firm had profit of

75,60,000 during the year 2021, The deficiency borne by Y will be:

(a) 9,600

(c) 24,000

(b) R14,400

(d) None of these

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Answer 1

Explanation:

PROFIT AND LOSS APPROPRIATION ACCOUNT FOR THE YEAR 2017

Particulars Amount Particulars Amount

To profit transferred to

X's capital A/c=20,000

Y's capital A/c=12,000

Less:-Z's share=(2000)

Z's capital A/c=8000

Add:-Y's share=2000 40,000 By net profit 40,000

Total 40,000 Total 40,000

PROFIT AND LOSS APPROPRIATION ACCOUNT FOR THE YEAR 2018

Particulars Amount Particulars Amount

To Profit transferred to

X's capital A/c=30,000

Y's capital A/c=18,000

Z's capital A/c=12,000

60,000 By net profit 60,000

Total 60,000 Total..