A and B are partners sharing profits in the ratio of 2 : 1. They admitted C, their manager, as a partner form 1st April, 2018, for 1/5th share of profit C, while being manager, was getting salary of ₹ 50,000 p.a. plus commission of 10% of net profit after charging such salary and commission. It was also agreed that any excess amount which C receives as a partner (over his salary and commission) will be borne by A. Profit for the year ended 31st March, 2019 was ₹ 6,44,000, before payment of salary and commission. Prepare Profit and Loss Appropriation Account.

A and B are partners sharing profits in the ratio of 2 : 1. They admit

1.	A and B are partners sharing profits in the ratio of 2 : 1. They admitted C, their manager, as a partner form 1st April, 2018, for 1/5th share of profit C, while being manager, was getting salary of ₹ 50,000 p.a. plus commission of 10% of net profit after charging such salary and commission. It was also agreed that any excess amount which C receives as a partner (over his salary and commission) will be borne by A. Profit for the year ended 31st March, 2019 was ₹ 6,44,000, before payment of salary and commission. Prepare Profit and Loss Appropriation Account.
Answer» A and B are partners sharing profits in the ratio of 2 : 1. They admitted C, their manager, as a partner form 1st April, 2018, for 1/5th share of profit C, while being manager, was getting salary of ₹ 50,000 p.a. plus commission of 10% of net profit after charging such salary and commission. It was also agreed that any excess amount which C receives as a partner (over his salary and commission) will be borne by A. Profit for the year ended 31st March, 2019 was ₹ 6,44,000, before payment of salary and commission. Prepare Profit and Loss Appropriation Account.