Monika, Bhoomika and Kamolika are partners sharing profits in the ratio of $\displaystyle 6$ : $\displaystyle 4$ : 1. Kamolika is guaranteed a minimum amount of ₹ $\displaystyle 3,00,000$ as her share in profits. The firm earned a net profit of ₹ $\displaystyle 22,00,000$ for the year ended 31st March 2022. Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2022.

OR

Ananya, Bhavi and Chandni were partners in a firm with capitals of ₹ $\displaystyle 3,00,000$, ₹ $\displaystyle 2,00,000$ and ₹ $\displaystyle 1,00,000$ respectively. According to the provisions of the partnership deed : (i) Ananya and Chandni were each entitled to a monthly salary of ₹ $\displaystyle 1$,500. (ii) Bhavi was entitled to a salary of ₹ $\displaystyle 4,000$ per annum. The profit for the year ended 31st March, $\displaystyle 2022$, ₹ $\displaystyle 80,000$ was divided between the partners in their profit sharing ratio of $\displaystyle 3$ : $\displaystyle 3$ : $\displaystyle 2$ without providing for the above adjustments. Pass the necessary adjustment entry to rectify the above omissions in the books of the firm. Show your working notes clearly.

Dr. Profit & Loss Appropriation A/c Cr. 31st for the year ended March $\displaystyle 2022$ Particulars Amount Particulars Amount ₹ ₹ To Profit transferred to Partners’ By P & L A/c $\displaystyle 22,00,000$ Capital A/c: (Net Profit) ($\displaystyle 1$/$\displaystyle 2$) Monika $\displaystyle 12,00,000$ Less: Guarantee to Kamolika $\displaystyle 60,000$ $\displaystyle 11,40,000$ ($\displaystyle 1$/$\displaystyle 2$) Bhoomika $\displaystyle 8,00,000$ Less: Guarantee to Kamolika $\displaystyle 40,000$ $\displaystyle 7,60,000$ ($\displaystyle 1$/$\displaystyle 2$) Kamolika $\displaystyle 2,00,000$ Add: Guarantee from Monika $\displaystyle 60,000$ Add: Guarantee from Bhoomika $\displaystyle 40,000$ $\displaystyle 3,00,000$ ($\displaystyle 1$½) $\displaystyle 22,00,000$ $\displaystyle 22,00,000$ Q.(b) Ananya, Bhavi and Chandni were partners................. Ans. Books of Ananya, Bhavi and Chandni Journal Date Particulars L.F Dr. Amount Cr. Amount ₹ ₹ $\displaystyle 2022$ Bhavi’s Capital A/c Dr. $\displaystyle 11,000$ March $\displaystyle 31$ To Ananya’s Capital A/c $\displaystyle 3,000$ To Chandani’s Capital A/c $\displaystyle 8,000$ (Adjustment entry passed for omission of salary to partners) Table Showing Adjustments Particulars Ananya(₹) Bhavi(₹) Chandni(₹) Firm(₹) Salary to be credited $\displaystyle 18,000$ $\displaystyle 4,000$ $\displaystyle 18,000$ $\displaystyle 40,000$ ₹$\displaystyle 40,000$ to be debited in $\displaystyle 3$:$\displaystyle 3$:$\displaystyle 2$ $\displaystyle 15,000$ $\displaystyle 15,000$ $\displaystyle 10,000$ $\displaystyle 40,000$ Difference $\displaystyle 3,000$ $\displaystyle 11,000$ $\displaystyle 8,000$ - Cr. Dr. Cr. -