n:                       Profit and Loss Appropriation Account  Dr                                                                                                                    CrParticulars                   Amount Rs.      Particulars                       Amount Rs. To Profit transferred to :                  By Profit and Loss A/c           54,000 A's A/c         26,400                          (Net Profit) B's A/c          17,600 Cs A/c           10,000       54,000                                                       54,000                                         54,000  Working NOTE :C will get higher of the TWO:  (i) Share of Profit as per profit sharing ratio, i.e.  x 54,000=9,000  (II) MINIMUM guaranteed profit i.e. 10,000 Thus, From net profits of 54,000; Minimum guaranteed profit to C for 10,000 would be adjusted, and then Balance profits of 44,000 (54,000 - 10, 000) will be shared by Rand Bin the ratio 3:2 Accordingly, Final Profit Share of A = x 44 000= 26,400 B= x 44 000=17,600 C = 10,000 (Minimum guaranteed profit)