Question

P, Q, and R are partners in a firm sharing profit and
loss in the ratio 2:2:1. P and Q have guaranteed that Rs
profit in any year shall not be less than Rs.20000. The
Net profit for the year ended 31st March 2018 was
Rs.60,000. Prepare Profit and Loss Appropriation
Account.

Answer 1

P:Q:R

2:2:1

net profit = 60000

p= 60000*2/5=48000

Q= 60000*2/5=48000

R= 60000*1/5= 12000