Amann, Babita and Suresh are partners in a firm. Their profit sharing ratio is 2:2:1. Suresh is guaranteed a minimum amount of Rs. 10,000 as share of profit, every year, Any deficiency on that account shall be met by Babita. The profits for two years ending December 31, 2015, and December 31, 2016, were Rs. 40,000 and Rs. 60,000, respectively. Prepare the Profit and Loss Appropriation Account for the two years.
Babita’s Capital Rs. 14,000; Suresh’s capital Rs. 10,000 and for the year 2006, Profit transferred to Amann’s Capital Rs. 24,000, Suresh’s capital, Rs. 12,000)
