Amit, Babita and Sona form a partnership firm, sharing profits in the ratio of 3 : 2 : 1, subject to the following :(i) Sona’s share in the profits, guaranteed to be not less than Rs. 15,000 in any year.(ii) Babita gives guarantee to the effect that gross fee earned by her for thefirm shall be equal to her average gross fee of the proceeding five years,when she was carrying on profession alone (which is Rs. 25,000). The netprofit for the year ended March 31, 2017 is Rs. 75,000. The gross fee earned by Babita for the firm was Rs. 16,000.You are required to show Profit and Loss Appropriation Account (after giving effect to the alone).
Amit, Babita and Sona form a partnership firm, sharing profits in the ratio of 3 : 2 : 1, subject to the following :(i) Sona’s share in the profits, guaranteed to be not less than Rs. 15,000 in any year.(ii) Babita gives guarantee to the effect that gross fee earned by her for thefirm shall be equal to her average gross fee of the proceeding five years,when she was carrying on profession alone (which is Rs. 25,000). The netprofit for the year ended March 31, 2017 is Rs. 75,000. The gross fee earned by Babita for the firm was Rs. 16,000.You are required to show Profit and Loss Appropriation Account (after giving effect to the alone).
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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Amit, Babita and Sona form a
(i) Sona’s share in the profits, guaranteed to be not less than Rs. 15,000 in any year.
(ii) Babita gives guarantee to the effect that gross fee earned by her for the
firm shall be equal to her average gross fee of the proceeding five years,
when she was carrying on profession alone (which is Rs. 25,000). The net
profit for the year ended March 31, 2017 is Rs. 75,000. The gross fee earned by Babita for the firm was Rs. 16,000.
You are required to show
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