As per the agreement, Profits should be shared equally but Loss shall be borne by one Partner. Then the Partnership agreement is_____.
Where there is no partnership agreement exists between partners, what will be the profit sharing ratio between the partners?
Arun, Boby and Chintu are partners in firm sharing profit in the ratio of 2:2:1. According to the terms of the partnership agreement. Chintu has to get a minimum of Rs 60,000, irrespective of the profits of the firm. Any Deficiency to Chintu on Account of such guarantee shall be borne by Arun. Prepare the profit and loss appropriation account showing distribution of profits among partners in case the profits for year 2006 are (i) Rs 2,50,000; (ii) Rs 3,60,000.