A, B and C who were property consultants and sharing profits in the ratio of 2:1:2. As per the terms of the deed the commission earned by C for the firm shall not be less than $ 15,000 in any year and B's share in profit be not less than $ 20,000. It was further agreed that excess payable to B over his share will be borne by A only. The Profit for the year ended 31 March, 2015 after considering the commission earned by C was$ 90,000. C earned $ 12,000. Prepare Profit and Loss Appropriation Account.
A, B and C who were property consultants and sharing profits in the ratio of 2:1:2. As per the terms of the deed the commission earned by C for the firm shall not be less than $ 15,000 in any year and B's share in profit be not less than $ 20,000. It was further agreed that excess payable to B over his share will be borne by A only. The Profit for the year ended 31 March, 2015 after considering the commission earned by C was$ 90,000. C earned $ 12,000. Prepare Profit and Loss Appropriation Account.
Chapter4: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 41P
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Transcribed Image Text:Problem 13
A, B and C who were property consultants and sharing profits in the ratio of 2:1:2. As per the terms of
the deed the commission earned by C for the firm shall not be less than $ 15,000 in any year and B's
share in profit be not less than $ 20,000. It was further agreed that excess payable to B over his share
will be borne by A only.
The Profit for the year ended 31 March, 2015 after considering the commission earned by C was$
90,000. C earned $ 12,000. Prepare Profit and Loss Appropriation Account.
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