4. A, B and C were partners in a firm. On 1 st April, 2020 the balance in their capital accounts stood at Rs. 8,00,000, Rs. 6,00,000 and Rs. 4,00,000 respectively. As per the provisions of the partnership deed, partners were entitled to interest on capital @ 5% p.a., salary to B Rs. 3,000 per month and a commission of Rs. 12,000 to C. A’s share of profit, excluding interest on capital, was guaranteed at
Rs. 25,000 p.a. B’s share of profit, including interest on capital but excluding salary was guaranteed at Rs. 55,000 p.a. Any deficiency arising on that account was to be met by C. The profits of the firm for the year ending 31st March, 2021 amounted to Rs. 2,16,000.
Prepare Profit and Loss Appropriation Account for the year ending 31st March, 2021.
