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X, y and Z are patterns sharing profit and losses in the ratio 2:2: 1.Z's shares is however guaranteed by the other partners at a minimum profit of RS 14,400, the net profit for the current year amount to RS 68,400 Prepare profit and loss appropriation account ?
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X, y and Z are patterns sharing profit and losses in the ratio 2:2: 1....
**Profit and Loss Appropriation Account**
The Profit and Loss Appropriation Account is a statement that shows how the net profit or loss of a partnership firm is distributed among the partners. It is prepared after the Profit and Loss Account and provides information about the allocation of profits to partners, including interest on capital, interest on drawings, salaries, commissions, and the division of the remaining profit or loss.
**Given Information:**
- Profit and loss sharing ratio of X, Y, and Z is 2:2:1.
- Z's share is guaranteed by other partners at a minimum profit of RS 14,400.
- Net profit for the current year is RS 68,400.
Based on the given information, we can calculate the share of profit for each partner and allocate the remaining profit accordingly.
**Step 1: Calculate the Total Profit**
The total profit can be calculated by subtracting the guaranteed minimum profit of Z from the net profit for the current year.
Total Profit = Net Profit for the current year - Guaranteed Minimum Profit of Z
Total Profit = RS 68,400 - RS 14,400
Total Profit = RS 54,000
**Step 2: Calculate the Share of Profit for each Partner**
To calculate the share of profit for each partner, we need to multiply the total profit by their profit sharing ratio.
Share of Profit for X = (Profit sharing ratio of X / Total profit sharing ratio) * Total Profit
Share of Profit for X = (2 / 5) * RS 54,000
Share of Profit for X = RS 21,600
Share of Profit for Y = (Profit sharing ratio of Y / Total profit sharing ratio) * Total Profit
Share of Profit for Y = (2 / 5) * RS 54,000
Share of Profit for Y = RS 21,600
Share of Profit for Z = (Profit sharing ratio of Z / Total profit sharing ratio) * Total Profit
Share of Profit for Z = (1 / 5) * RS 54,000
Share of Profit for Z = RS 10,800
**Step 3: Prepare the Profit and Loss Appropriation Account**
The Profit and Loss Appropriation Account is prepared to show the allocation of profits among the partners. It includes various items such as interest on capital, interest on drawings, salaries, commissions, and the remaining profit or loss.
Profit and Loss Appropriation Account for the year ended [Date]
| Particulars | Amount (RS) |
| --- | --- |
| Net Profit for the current year | 68,400 |
| Less: Guaranteed Minimum Profit of Z | 14,400 |
| Total Profit available for appropriation | 54,000 |
| | |
| X's Share of Profit | 21,600 |
| Y's Share of Profit | 21,600 |
| Z's Share of Profit | 10,800 |
| | |
| Total | 54,000 |
In the above Profit and Loss Appropriation Account, the net profit for the current year is shown, followed by the deduction of the guaranteed minimum profit of Z. The remaining profit is then allocated among the partners according to their profit sharing ratio. The total profit shared by all partners should be equal to the total profit available for appropriation.
By preparing the Profit and Loss Appropriation Account, the partners can understand how the profit is distributed among them and can make decisions regarding the
The Profit and Loss Appropriation Account is a statement that shows how the net profit or loss of a partnership firm is distributed among the partners. It is prepared after the Profit and Loss Account and provides information about the allocation of profits to partners, including interest on capital, interest on drawings, salaries, commissions, and the division of the remaining profit or loss.
**Given Information:**
- Profit and loss sharing ratio of X, Y, and Z is 2:2:1.
- Z's share is guaranteed by other partners at a minimum profit of RS 14,400.
- Net profit for the current year is RS 68,400.
Based on the given information, we can calculate the share of profit for each partner and allocate the remaining profit accordingly.
**Step 1: Calculate the Total Profit**
The total profit can be calculated by subtracting the guaranteed minimum profit of Z from the net profit for the current year.
Total Profit = Net Profit for the current year - Guaranteed Minimum Profit of Z
Total Profit = RS 68,400 - RS 14,400
Total Profit = RS 54,000
**Step 2: Calculate the Share of Profit for each Partner**
To calculate the share of profit for each partner, we need to multiply the total profit by their profit sharing ratio.
Share of Profit for X = (Profit sharing ratio of X / Total profit sharing ratio) * Total Profit
Share of Profit for X = (2 / 5) * RS 54,000
Share of Profit for X = RS 21,600
Share of Profit for Y = (Profit sharing ratio of Y / Total profit sharing ratio) * Total Profit
Share of Profit for Y = (2 / 5) * RS 54,000
Share of Profit for Y = RS 21,600
Share of Profit for Z = (Profit sharing ratio of Z / Total profit sharing ratio) * Total Profit
Share of Profit for Z = (1 / 5) * RS 54,000
Share of Profit for Z = RS 10,800
**Step 3: Prepare the Profit and Loss Appropriation Account**
The Profit and Loss Appropriation Account is prepared to show the allocation of profits among the partners. It includes various items such as interest on capital, interest on drawings, salaries, commissions, and the remaining profit or loss.
Profit and Loss Appropriation Account for the year ended [Date]
| Particulars | Amount (RS) |
| --- | --- |
| Net Profit for the current year | 68,400 |
| Less: Guaranteed Minimum Profit of Z | 14,400 |
| Total Profit available for appropriation | 54,000 |
| | |
| X's Share of Profit | 21,600 |
| Y's Share of Profit | 21,600 |
| Z's Share of Profit | 10,800 |
| | |
| Total | 54,000 |
In the above Profit and Loss Appropriation Account, the net profit for the current year is shown, followed by the deduction of the guaranteed minimum profit of Z. The remaining profit is then allocated among the partners according to their profit sharing ratio. The total profit shared by all partners should be equal to the total profit available for appropriation.
By preparing the Profit and Loss Appropriation Account, the partners can understand how the profit is distributed among them and can make decisions regarding the
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X, y and Z are patterns sharing profit and losses in the ratio 2:2: 1.Z's shares is however guaranteed by the other partners at a minimum profit of RS 14,400, the net profit for the current year amount to RS 68,400 Prepare profit and loss appropriation account ?
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X, y and Z are patterns sharing profit and losses in the ratio 2:2: 1.Z's shares is however guaranteed by the other partners at a minimum profit of RS 14,400, the net profit for the current year amount to RS 68,400 Prepare profit and loss appropriation account ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X, y and Z are patterns sharing profit and losses in the ratio 2:2: 1.Z's shares is however guaranteed by the other partners at a minimum profit of RS 14,400, the net profit for the current year amount to RS 68,400 Prepare profit and loss appropriation account ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X, y and Z are patterns sharing profit and losses in the ratio 2:2: 1.Z's shares is however guaranteed by the other partners at a minimum profit of RS 14,400, the net profit for the current year amount to RS 68,400 Prepare profit and loss appropriation account ?.
X, y and Z are patterns sharing profit and losses in the ratio 2:2: 1.Z's shares is however guaranteed by the other partners at a minimum profit of RS 14,400, the net profit for the current year amount to RS 68,400 Prepare profit and loss appropriation account ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about X, y and Z are patterns sharing profit and losses in the ratio 2:2: 1.Z's shares is however guaranteed by the other partners at a minimum profit of RS 14,400, the net profit for the current year amount to RS 68,400 Prepare profit and loss appropriation account ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X, y and Z are patterns sharing profit and losses in the ratio 2:2: 1.Z's shares is however guaranteed by the other partners at a minimum profit of RS 14,400, the net profit for the current year amount to RS 68,400 Prepare profit and loss appropriation account ?.
Solutions for X, y and Z are patterns sharing profit and losses in the ratio 2:2: 1.Z's shares is however guaranteed by the other partners at a minimum profit of RS 14,400, the net profit for the current year amount to RS 68,400 Prepare profit and loss appropriation account ? in English & in Hindi are available as part of our courses for Commerce.
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