Anil, Sunil and Ravinder entered into a partnership on 1st April 2015 to share profits in the ratio of 2 : 1 : 1. It was provided in the deed that Ravinder's share of profit will not be less than Rs 70,000 per annum. The losses for the year ended 31st March, 2016 were Rs 2,00,000 before allowing interest Rs 8,000 on Anil's Loan which is due for the current year. You are required to show necessary account for division of loss and also pass the necessary journal entries.

Dear Student,
 Profit and Loss Account for the year ended 31,March 2016 Dr. Cr. Particulars Amount Rs Particulars Amount Rs Loss b/d (2,00,000+8,000) 2,08,000 Loss tfd. to Partners’ Capital A/c Ravinder’s Capital A/c 70,0000 Anil(1,04,000+81,333) 1,85,333 Sunil(52,000+40,667) 92,667 Ravinder(52,000-1,22,000) 2,78,000 2,78,000

 Journal Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs) Anil’s Capital A/c Dr. 1,04,000 Sunil’s Capital A/c Dr. 52,000 Ravinder’s Capital A/c Dr. 52,000 To Profit & Loss A/c 2,08,000 (Loss shared) Anil’s Capital A/c Dr. 81,333 Sunil’s Capital A/c Dr. 40,667 To Ravinder’s Capital A/c 1,22,000 (guarantee adjusted)

Regards

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 dr     profit and loss appropriation a/c for the year ended 31st march 2016   cr particulars rupees particulars rupees to bal b/d      200000 less interest      8000 192000 by loss t/t partners capital a/c              anil        81333.33                            sunil     40666.67                                      ravinder 70000 192000 192000 192000
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sorry for the formatting mistake. first you have to make the p/l appropriation a/c. And then, less the interest on loan from the loss amt given and the distribute the loss incurred in the ratio 2:1:1. But as the question says you have to give ravinder 70000 p/l.

​anil 81333.33, sunil 40666.67, ravinder  70000

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What are you looking for?