Question

A B C are partner sharing profit in the ratio of 3:2:1 the terms are as follows:
1. C's share of profit will not be less than 30000 in any year 2. A's contribution in firm's profit will not be less than 30000 in any year
during the year firm earns a profit of ₹ 60000 ( including A's contribution ₹27000) you are required to show firm's profit and loss appropriation account​

Answer 1

Explanation:

p&l appropriation a/c

dr. amt. cr. amt

to partner's cap

a= 18500

b= 14500

c= 30000 63000

by profit

a= 30000

b= 20000

c = 10000. 60000

by A's capital. 3000

63000. 63000