Maanika, Bhavi and Komal are partners sharing profits in the ratio of 6 : 4 : 1. Komal is guaranteed a minimum profit of ₹ 2,00,000

Maanika, Bhavi and Komal are partners sharing profits in the ratio of 6 : 4 : 1. Komal is guaranteed a minimum profit of ₹ 2,00,000. The firm incurred a loss of ₹ 22,00,000 for the year ended 31st March, 2018. Pass necessary journal entry regarding deficiency borne by Maanika and Bhavi and prepare Profit and Loss Account.

[Ans. (i) First of all, loss of ₹ 22,00,000 will be debited to Maanika, Bhavi and Komal in their profit sharing ratio of 6 : 4 : 1.

(ii) Thereafter, Komal’s deficiency of ₹ 4,00,000 will be borne by Maanika and Bhavi in 6 : 4.]