Question

Mukesh and Ramesh are partners sharing profits and losses in the ratio of 2:1 respectively. They
admit Rupesh as partner with 1/4 share in profits with guarantee that his share of profit shall be
at least 55,000. The net profit of the firm for the year ending 31 March, 2014 was 1,60,000.
Prepare Profit and Loss Appropriation Account
​

Answer 1

Answer:

Mukesh and Ramesh are partners sharing profits and losses in the ratio of 2 : 1 respectively. They admit Rupesh as a partner with 1/4 share in profits with a guarantee that his share of profit shall be atleast Rs 55,000. The net profit of the firm for the year ending 31st March, 2013 was Rs. 1,60,000