[NCERT] Q 35 Solutions Accounting for Partnership Basic Concepts Class 12

Solution of Question number 35 of Accounting for Partnership Basic Concepts NCERT Accountancy solution Class 12 CBSE Board

Ram, Mohan and Sohan are partners with capitals of ₹ 5,00,000, ₹ 2,50,000 and ₹ 2,00,000 respectively. After providing interest on capital @ 10% p.a. the profits are divisible as follows:

Ram 1/2, Mohan 1/3 and Sohan 1/6. Ram and Mohan have guaranteed that Sohan’s share in the profit shall not be less than ₹ 25,000. In any year. The net profit for the year ended March 31, 2017 is ₹ 2,00,000, before charging interest on capital.

You are required to show distribution of profit by preparing P & L Appropriation Account.

[Ans: Profit to Ram, ₹ 48,000, Mohan, ₹ 32,000 and Sohan, ₹ 25,000]

Solution:-