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
Particulars Amount
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
  2,78,000   2,78,000

Date Particulars L.F. Debit
   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)        


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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  
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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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