# A, B and C entered into partnership on 1st July, 2023 to share profit and losses in the ratio of 5 : 3 : 2. A personally guaranteed that C’s share of profit after charging interest on capital @ 8% per annum

A, B and C entered into partnership on 1st July, 2023 to share profit and losses in the ratio of 5 : 3 : 2. A personally guaranteed that C’s share of profit after charging interest on capital @ 8% per annum would not be less than 1,60,000 p.a. The capital contributed were: A – â‚¹ 4,00,000; B – â‚¹ 3,00,000 and C – â‚¹ 2,00,000. Profit for the year ended on 31st March, 2024 was â‚¹ 4,74,000. Prepare Profit and Loss Appropriation Account.

[Ans. Share of Profit : A â‚¹ 1,74,000; B â‚¹ 1,26,000 and C â‚¹ 1,20,000.]

Anurag Pathak Answered question May 29, 2024