A, B and C are partners in a firm. Their profit sharing ratio is 3 : 2 : 1. However, C is guaranteed a minimum amount of ₹ 10,000 as share of profits every year

A, B and C are partners in a firm. Their profit sharing ratio is 3 : 2 : 1. However, C is guaranteed a minimum amount of ₹ 10,000 as share of profits every year. Any deficiency arising on that account shall be met by A. The profits for the two years ending 31st March, 2023 and 2024 were ₹ 30,000 and ₹ 90,000 respectively. Prepare Profit and Loss Appropriation Accofunt for the two years.

Ans. 1st year ₹ 10,000 each, 2nd year A ₹ 45,000; B ₹ 30,000 and C ₹ 15,000]