Ownclasses

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 1/8th share in the profits with a guaranteed profit of ` 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 ₹ 4,00,000.
Prepare Profit and Loss Appropriation Account of P, Q and R for the year ended 31-3-2015.

Answer


Working Notes:
straight R apostrophe straight s space Share space in space Profit space equals 4 comma 00 comma 000 cross times 1 over 8 equals 50 comma 000
Minimum space Guaranteed space Profit space to space straight R equals 75 comma 000
Deficiency space equals 25 comma 000 thin space left parenthesis 75 comma 000 minus 50 comma 000 right parenthesis
Deficiency space to space be space borne space by space straight P space and space straight Q space in space the space ratio space of space 3 colon 2
Amount space to space be space borne space by space straight P space equals space 25 comma 000 cross times 3 over 5 equals 15 comma 000
Amount space to space be space borne space by space straight Q space equals space 25 comma 000 space cross times 2 over 5 equals 10 comma 000
therefore space space straight P apostrophe straight s space Profit space Share space equals 3 comma 25 comma 000 space cross times 5 over 8 equals 2 comma 03 comma 125
& space straight Q apostrophe straight s space Profit space Share equals 3 comma 25 comma 000 space cross times 3 over 8 equals 1 comma 21 comma 875