Solve this:
Q. P and Q were partners in a firm sharing profits in the ratio of 5 : 3. On 1-4-2014 they admitted R as a new partner for share in the profits with a guaranteed profit of Rs. 75,000. The new profit sharing ratio between P and Q will remain the same but they agreed to bear any deficiency on account of guarantee to R in the ratio 3 : 2. The profit of the firm for the year ended 31-3-2015 was Rs 4,00,000.
Prepare Profit and Loss Appropriation Account of P, Q and R for the year ended 31-3-2015.
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Profit and Loss Appropriation Account for the year ended March 31, 2015 |
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Dr. |
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Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
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Profit transferred to: |
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Profit and Loss A/c |
4,00,000 |
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P’s Capital A/c |
2,03,750 |
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Q’s Capital A/c |
1,21,250 |
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R’s Capital A/c |
75,000 |
4,00,000 |
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4,00,000 |
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4,00,000 |
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Working Notes:
