question_answer

Anil, Sunil and Ravinder entered into partnership to start a business of manufacturing shoes on 1st January, 2017 to share profits in the ratio of 2 : 1 : 1. They decided to allow a discount of 30% on shoes for school going children. It was provided in the deed that Ravinder's share of profit will not be less than Rs. 70,000 per annum. The profit for the year ended 31st December, 2017 were Rs. 2,00,000 before allowing interest Rs. 8,000 on Anil's loan which is due for the current year. Prepare profit amd loss appropriation account for the year ended 31st December, 2017.

Answer:

Profit of Anil = Rs. 81,333.3 Sunil = Rs. 40,666.7 Ravinder = Rs. 70,000