[NCERT] Q 36 Solutions Accounting for Partnership Basic Concepts Class 12

Solution of Question number 36 of Accounting for Partnership Basic Concepts NCERT Accountancy solution Class 12 CBSE Board

Amit, Babita and Sona form a partnership firm, sharing profits in the ratio of 3 : 2 : 1, subject to the following:

(i) Sona’s share in the profits, guaranteed to be not less than ₹ 15,000 in any year.

(ii) Babita gave guarantee to the effect that gross fee earned by her for the firm shall be equal to her average gross fee of the proceeding five years, when she was carrying on profession alone (which is ₹ 25,000). The net profit for the year ended March 31, 2017 is ₹ 75,000. The gross fee earned by Babita for the firm was ₹ 16,000.

You are required to prepare Profit and Loss Appropriation Account.

[Ans : Profit transferred to Capital Accounts of: Amit, ₹ 41,400, Babita, ₹ 27,600 and Sona, ₹ 15,000]

Solution:-