A, B and C were partners in a firm sharing profits in the ratio of 1 : 2 : 3. B was guaranteed a profit of ₹ 2,00,000. Any deficiency on account of guarantee to B was to be borne by A and C in 1 : 4 ratio

A, B and C were partners in a firm sharing profits in the ratio of 1 : 2 : 3. B was guaranteed a profit of ₹ 2,00,000. Any deficiency on account of guarantee to B was to be borne by A and C in 1 : a 4 ratio. The profit of the firm for the year ended 31.3.2023 amounted to ₹ 4,20,000.

Prepare Profit and Loss Appropriation Account.

[Ans. Share of Profit A ₹ 58,000; B ₹ 2,00,000 and C ₹ 1,62,000.]