LCS-AC-T01 | Guarantee of Profit to Partner | Profit & Loss Appropriation A/c | Accountancy

In this video, we solve an important Class 12 Accountancy question based on Guarantee of Profit to a New Partner and prepare the Profit and Loss Appropriation Account. 📌 Question: Jain and Gupta were partners in a firm sharing profits in the ratio of 3 : 1. On 1st April, 2024, Agarwal was admitted as a new partner for 1/5th share in the profits of the firm with a minimum guaranteed amount of ₹75,000. Any deficiency arising from the guarantee will be borne by Jain and Gupta in the ratio of 1 : 3. During the year ended 31st March, 2025, the firm earned a net profit of ₹3,00,000. The video explains how to prepare the Profit and Loss Appropriation Account of Jain, Gupta and Agarwal. ✅ In this video, you will learn: • Treatment of Guarantee of Profit to a Partner • Calculation of Agarwal's 1/5th share of profit • How to calculate the deficiency under guarantee • Treatment of deficiency borne by existing partners • Distribution of deficiency between Jain and Gupta in the ratio 1 : 3 • Preparation of Profit & Loss Appropriation Account • Step-by-step CBSE exam-oriented solution 📚 Chapter: Admission of a Partner 🎓 Class: 12 Accountancy 📅 Session: 2026–27 This question is useful for CBSE Board Exam preparation, school tests, revision and practice of Partnership Accounts. 📖 Learning Curve by Sudhir Concept-Based Learning for Better Understanding & Results Subscribe for more Class 12 Accountancy test solutions, numericals, journal entries and concept-based videos. #Class12Accountancy #GuaranteeOfProfit #AdmissionOfPartner #ProfitAndLossAppropriation #PartnershipAccounts #CBSEClass12 #AccountancySolutions #AccountancyNumericals #CommerceWithMaths #LearningCurveBySudhir #CBSE202627