n:                        Profit and Loss Appropriation Account                                  For the year ended 2017-18  Dr                                                                                                                      Cr  Particulars                            RS.                Particulars                                 Rs. To Profit transferred to :                      By Profit and Loss A/C            40,000 A's Capital A/c      19,500                          (Net Profit) B's Capital A/c      15,500 Cs Capital A/c       5,000                                                                     40,000                                          40,000                                                       40,000  Working Notes : Profit for the year = 40, 000 Profit sharing ratio= 5:4:1 C is given a guarantee of minimum profit of 5, 000 A's Profit Share = 40,000 x = 20, 000 B's Profit Share = 40,000 x = 16 000 Cs Profit Share = 40,000 x = 34,000 DEFICIENCY in C's Share = 5, 000 - 4000 = 1,000 This deficiency is to be BORNE by A and B equally. Deficiency borne by A = 1,000 x = 500 Deficiency borne by B =1,000 x =  500  Therefore, Final Profit Share of A = 20,000 -500 = 19,500 Final Profit Share of B = 16,000 - 500 = 15,500 Final Profit Share of C = 4,000 + 1,000= 5, 000