A, B and C were in partnership sharing profits in the ratio of 1 : 2 : 3. Their
fixed capitals on 1st April, 2018 were : A 3,00,000; B 4,50,000 and C 10,00,000.
Their partnership deed provided for the following :
(i) A provides his personal office to the firm for business use
of 1,50,000.
(ii) Interest on capital @ 8% p.a. and interest on drawings@ 10% p.a.
(iii) A was allowed salary @ 10,000 per month.
(iv) B was allowed a commission of 10% of net profit as shown by Profit & Loss
Account, after charging such commission.
(v) C was guaranteed a profit of 3,00,000 after making all the adjustments.
The net profit of the firm for the year ended 31st March, 2019 was 10,30,000
before making above adjustments.
You are informed that A has withdrawn 5,000 at the beginning of each month, B
has withdrawn 5,000 at the end of each month and C has withdrawn 24,000 at the
beginning of each quarter.
Prepare Profit and Loss Appropriation Account and Partner's Current Accounts.