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A and b are partners sharing profit and losses in the ratio of 3:2 they admit c for 1/6 share in profits c was granted the amounts of 15000 which was born by a and b equally in case of deficiency the profit for the year ended 75000 prepare profit and loss appropriation account if the new profit sharing ratio is 3:2:1?
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A and b are partners sharing profit and losses in the ratio of 3:2 the...
Calculation of Profit and Loss Appropriation Account


Step 1: Calculation of Profit Before Appropriation


Profit and Loss Account:

Particulars Amount
Profit for the year ended 75000
Add: Deficiency 7500
Total 82500

Step 2: Calculation of New Profit Sharing Ratio


Old profit sharing ratio of A and B = 3:2
Total old ratio = 3 + 2 = 5

New ratio of A, B and C = 3:2:1
Total new ratio = 3 + 2 + 1 = 6

Step 3: Calculation of Share of Profits for A and B


Share of profit for A = (3/5) * 82500 = 49500
Share of profit for B = (2/5) * 82500 = 33000

Step 4: Calculation of Share of Profit for C


Share of profit for C = (1/6) * 82500 = 13750
Less: Amount granted to C = 15000
C has suffered a loss of 1250 which will be borne by A and B in their old profit sharing ratio of 3:2

Step 5: Calculation of Total Profit Shared


Total profit shared = Share of profit for A + Share of profit for B + Share of profit for C - Amount granted to C
Total profit shared = 49500 + 33000 + (-1250) - 15000
Total profit shared = 65750

Step 6: Preparation of Profit and Loss Appropriation Account


Profit and Loss Appropriation Account:

Particulars Amount
Profit and Loss Account 82500
Add: C's share of profit (1/6) 13750
Less: Amount granted to C 15000
Less: C's loss (1250)
Total 65750
Less: A's share of profit (49500)
Less: B's share of profit (33000)
Balance (Deficiency) Nil

Explanation


In the given question, A and B are partners sharing profit and losses in the ratio of 3:2. They admit C for 1/6 share in profits and C was granted the amount of 15000 which was borne by A and B equally. In case of deficiency, the profit for the year ended is 75000 and the new profit sharing ratio is 3:2:1.

The first step is to calculate the profit before appropriation which is 82500 (75000 + 7500). The second step is to calculate the new profit sharing ratio which is 3:2:1. The third step is to calculate the share of profits for A and B which is 49500 and 33000 respectively. The fourth step is to calculate the share of profit for C which is 13750 but as C was granted the amount of 15000, C has suffered a loss of 1250 which will be borne by A and B in their old profit sharing ratio of 3:2.

The fifth step is to calculate the total profit shared which is 65750. The last step is to
Community Answer
A and b are partners sharing profit and losses in the ratio of 3:2 the...
C will get a Profit of 15000
A will get profit of 35000 (12500×3 - 2500 transferred to C)
B will get a Profit of 22500(12500×2 - 2500 transferred to C)
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A and b are partners sharing profit and losses in the ratio of 3:2 they admit c for 1/6 share in profits c was granted the amounts of 15000 which was born by a and b equally in case of deficiency the profit for the year ended 75000 prepare profit and loss appropriation account if the new profit sharing ratio is 3:2:1?
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A and b are partners sharing profit and losses in the ratio of 3:2 they admit c for 1/6 share in profits c was granted the amounts of 15000 which was born by a and b equally in case of deficiency the profit for the year ended 75000 prepare profit and loss appropriation account if the new profit sharing ratio is 3:2:1? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and b are partners sharing profit and losses in the ratio of 3:2 they admit c for 1/6 share in profits c was granted the amounts of 15000 which was born by a and b equally in case of deficiency the profit for the year ended 75000 prepare profit and loss appropriation account if the new profit sharing ratio is 3:2:1? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and b are partners sharing profit and losses in the ratio of 3:2 they admit c for 1/6 share in profits c was granted the amounts of 15000 which was born by a and b equally in case of deficiency the profit for the year ended 75000 prepare profit and loss appropriation account if the new profit sharing ratio is 3:2:1?.
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