Jitender, Shekhar and Madhu were partners ofan firm sharing profits in the ratio of 2:2: 1. Their partnership
deed provided the following:
A monthly salary of 30,000 cach to Jitender and Shekhar
Madhu was guaranteed a profit of 10,00,000 and Jitender guaranteed that he will earn an annual fee
of? 4,00,000. Any deficiency arising because of guarantee to Madhu will be bome by Jitender and
Shekhar in the ratio of3:2.
During the year ended 31st March, 2019, Jitender carned fee of 3,50.000 and profits of the firm amounted
to 30.00.000
Showing your working clearly, prepare Profit and Loss Appropriation Account and the Current Account of
Jitender, Shekhar and Madhu.
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