A, B and C were partners in a firm. On 1st April, 2018 the balance in their capital accounts stood at ₹8,00,000, ₹6,00,000 and ₹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 ₹3,000 per month and a commission of ₹12,000 to C.

A’s share of profit, excluding interest on capital, was guaranteed at ₹25,000 p.a. B’s share of profit, including interest on capital but excluding salary was guaranteed at ₹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, 2019 amounted to ₹2,16,000.

Prepare Profit and Loss Appropriation Account for the year ending 31st March, 2019. 

Marks-4, CBSE:2019-20/Compartment/Q-16*