Ashok, Brijesh and Cheena are Partners Sharing Profits and Losses in the Ratio of 2 : 2 : 1 - Accountancy

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Ashok, Brijesh and Cheena are partners sharing profits and losses in the ratio of 2 : 2 : 1. Ashok and Brijesh have guaranteed that Cheena share in any year shall be less than Rs 20,000. The net profit for the year ended March 31, 2017 amounted to Rs 70,000. Prepare Profit and Loss Appropriation Account.




Profit and Loss Appropriation Account
as on March 31, 2017

Dr.                                                                                                     Cr.

ParticularsAmountParticularsAmount
To Profit transferred to By Profit and loss A/c70,000
Ashok’s Capital28,000
Less: Cheena’s share of deficiency(3,000)25,000
To Brijesh’s Capital28,000
Less: Cheena’s share of deficiency {6,000 × (1/2)}(3,000)  25,000
To Cheena’s Capital14,000
Add: Deficiency received from 
Ashok3,000
Brijesh3,00020,000
 70,00070,000

Chapter-2 Partnership Basic: Accounts



Location: India

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