Ram, Mohan and Sohan are partners with capitals of ₹ 5,00,000, ₹ 2,50,000 and ₹ 2,00,000 respectively
Ram, Mohan and Sohan are partners with capitals of ₹ 5,00,000, ₹ 2,50,000 and ₹ 2,00,000 respectively. After providing interest on capital @ 10% p.a. the profits are divisible as follows:
Ram 1/2, Mohan 1/3 and Sohan 1/6. Ram and Mohan have guaranteed that Sohan’s share in the profit shall not be less than ₹ 25,000. In any year. The net profit for the year ended March 31, 2017 is ₹ 2,00,000, before charging interest on capital.
You are required to show distribution of profit by preparing P & L Appropriation Account.
[Ans: Profit to Ram, ₹ 48,000, Mohan, ₹ 32,000 and Sohan, ₹ 25,000]
Anurag Pathak Changed status to publish March 25, 2024
