Abhay, Siddharth and Kusum are partners in a firm, sharing profits in theratio of 5:3:2. Kusum is guaranteed a minimum amount of Rs. 10,000 as pershare in the profits. Any deficiency arising on that account shall be met bySiddharth. Profits for the years ending March 31, 2016 and 2017 are Rs. 40,000 and 60,000 respectively. Prepare Profit and Loss Appropriation Account.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Abhay, Siddharth and Kusum are partners in a firm, sharing profits in the
ratio of 5:3:2. Kusum is guaranteed a minimum amount of Rs. 10,000 as per
share in the profits. Any deficiency arising on that account shall be met by
Siddharth. Profits for the years ending March 31, 2016 and 2017 are Rs. 40,000 and 60,000 respectively. Prepare Profit and Loss Appropriation Account.

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