Question

Guarantee of profit
A, B and C are partners in a firm sharing profits & losses in the ratio of 5:3 : 2.
A, however, personally guaranteed that C's share of profits after charging interest
on capital @ 10% p.a. would not be less than 22,500 in any year. The capital
of the partners was A1.20,000; B 75,000 and C 60,000. The profits for
the year 2017-18 amounted to 1.19.250 before charging interest. Show P&L
Appropriation Account​

Answer 1

Explanation:

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