A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1 with a
guarantee of minimum profits to C for ˆ 15,000. Total profits of the firm for the year
ended on December 31, 2012 amounted ˆ60,000. Any excess payable to C on account of
such guarantee shall be borne by A and B in equal ratio.
Prepare a profit and loss appropriation account to show the distribution of profits as per terms of partnership deed.