Peter, Max and Som were partners in a firm sharing profits and losses in the ratio of 4:2:1.
Their fixed capital were Rs 40,000, Rs 30.000, respectively. Som was guaranteed a profit of Rs 39,000 by the firm.
It was decided that any loss arising because of the guarantee would be shared by Peter and Max equally.
The trading profit of the firm for the year ended 31 st March, 2018, was ₹ 1,47,000. You are required to prepare the Profit and Loss Appropriation Account for the year 2017-18, showing the distribution of profits.