# A, B & C were partners in a firm sharing profits in the ratio of 3:2:1. B was guaranteed a profit of Rs. 2,00,000. During the year, the firm earned a profit of Rs. 84,000. Calculate the ​net amount of Profit/Loss transferred to capital accounts of A & C. Can someone please explain me how to do this sum?????

Dear Student

As no info regarding the ratio of Deficiency borne is given, Assuming that guarantee given to B is given by A and C in their PSR i.e 3: 1.

Steps to solve this problem :
1. Find the share of profit through their Actual PSR.
2. Find the deficiency of profit by comparing actual profit share of B by Rs 2,00,000/-. This deficiency shall be borne by A and C in the ratio of 2:1.
3. From the actual profits arrived of A and C Subtract the deficiency share and the remaining would be the Actual share of A and C.
4. Please refer the solution below to understand correctly.

Solution :
 Calculation of Actual distribution of profit Total Profit 84,000 Share of Profit in PSR : A : (84,000 x 3/6) 42,000 B : (84,000 x 2/6) 28,000 C : (84,000 x 1/6) 14,000 Share Guaranteed to B by A and C in Ratio 3:1 200,000 Deficiency (2,00,000 - 28,000) 172,000 Deficiency to be borne by A (1,72,000 x 3/4) 129,000 Net profit transferred to A's Capital A/c (42,000 - 1,29,000) (87,000) Deficiency to be borne by C (1,72,000 x 1/4) 43,000 Net profit transferred to A's Capital A/c (14,000 - 43,000) (29,000)

 Profit and Loss Appropriation A/c Date Particulars Amount Date Particulars Amount (Rs) (Rs) Profit Share : B's Capital A/c 200,000 Net profit 84,000 Capital A/c A 87000 C 29000 116,000 200,000 200,000

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