Roja and usha were partners in a firm sharing profits and losses in th...
Solution:
Calculation of profit share for each partner:
Total profit of the firm = 9000
Let's assume that Roja guarantees the minimum profit share for Sahana.
Thus, the minimum profit share for Sahana = 25000
Let the total profit be divided into 6 parts (as Sahana is taking 1/6th share).
So, one part of the profit = 9000/6 = 1500
Sahana's share = 25000 (minimum guaranteed share)
Hence, the remaining 5 parts of profit = 6 - 1 = 5
Profit share of Roja = 3 parts out of 5 parts = 3/5 x 5 parts x 1500 = 9000/3 = 3000
Profit share of Usha = 2 parts out of 5 parts = 2/5 x 5 parts x 1500 = 6000/5 = 1200
Therefore, the profit share for each partner is as follows:
- Roja = Rs. 3000
- Usha = Rs. 1200
- Sahana = Rs. 25000 (minimum guaranteed share)
Preparation of Loss and Profit Appropriation Account:
Particulars Amount (Rs.) Amount (Rs.)
Total profit (as per Trial Balance) 9000
Less: Salary to Roja 200
Net profit 8800
Less: Interest on capital
Roja (3/5 x 10000) 600
Usha (2/5 x 8000) 320
9200
Less: Share of profits
Roja (3/5 x 8800) 5280
Usha (2/5 x 8800) 3520
8800
Add: Guaranteed share of profit to Sahana 25000
Total profit to be distributed 33800
Distribution of profit:
Roja (3/5 x 33800) 20280
Usha (2/5 x 33800) 13520
Sahana (minimum guaranteed share) 25000
Total 58800
Conclusion:
In conclusion, Roja and Usha were partners in a firm, sharing profits and losses in the ratio of 3:2. They admitted Sahana for 1/6th share in profits and guaranteed that his share of profit would not be less than Rs. 25000. The total profit of the firm was Rs. 9000. Roja guaranteed the minimum profit share for Sahana. The share of profit for each partner was calculated as Roja Rs. 3000, Usha Rs. 1200, and Sahana Rs. 25000 (minimum guaranteed share). The loss and profit appropriation account was prepared, which showed that the total profit to be distributed was Rs. 33,800, with Roja receiving Rs. 20,280, Usha receiving Rs. 13,520, and Sahana receiving Rs. 25,000 (minimum guaranteed share).
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