A,B and C are in partnership. A and C share profits in the ratio of 2:1, B was allowed to receive a salary of Rs. 3,500 per month and commission of 10% of profit after charging his commission of 1/2 of the profit of the firm whichever is more subject to the maximum share of profit i,e., Rs. 60,000. Any excess which he receive will be paid back to A and C in the ratio of 1 : 1. The profit of the firm after charging B's salary is Rs. 88,000. Distribute the profits by making Profit and Loss Appropriation Account. Show your workings clearly.

A,B and C are in partnership. A and C share profits in the ratio of 2:

1.	A,B and C are in partnership. A and C share profits in the ratio of 2:1, B was allowed to receive a salary of Rs. 3,500 per month and commission of 10% of profit after charging his commission of 1/2 of the profit of the firm whichever is more subject to the maximum share of profit i,e., Rs. 60,000. Any excess which he receive will be paid back to A and C in the ratio of 1 : 1. The profit of the firm after charging B's salary is Rs. 88,000. Distribute the profits by making Profit and Loss Appropriation Account. Show your workings clearly.
Answer» A,B and C are in partnership. A and C share profits in the ratio of 2:1, B was allowed to receive a salary of Rs. 3,500 per month and commission of 10% of profit after charging his commission of 1/2 of the profit of the firm whichever is more subject to the maximum share of profit i,e., Rs. 60,000. Any excess which he receive will be paid back to A and C in the ratio of 1 : 1. The profit of the firm after charging B's salary is Rs. 88,000. Distribute the profits by making Profit and Loss Appropriation Account. Show your workings clearly.