A, B and C are partners in a firm with Head Office in Kolkata and Branches in Mumbai and Chennai. They share profits and losses in the ratio of  ₹5:3:2. B and C (respectively managing Mumbai and Chennai Branches) are also entitled to a fixed salary of  ₹5,000 p.a. and to a commission equal to 30% of profit of their respective branches after deducting therefrom the aforesaid salary and an amount equal to 10% of the average capital employed in the branch. Interest on capital is to be allowed at 5% p.a. Besides, if the share of C (including salary, interest and commission), is less than ₹30,000, the shortfall is to be borne by A.

From the following information, prepare the Profit and Loss Appropriation Account for the year ended 31.12.2017:It is ascertained that the net assets of Mumbai and Chennai branches have registered an increase of  ₹5,200 and  ₹3,200 respectively as compared to the beginning of the year.

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(a) Capital: A2,00,000; B - 80,000; C60,000. Drawings: A- 30,000; B -- 17,500; C - 14,000. (b) Assets as on 31.12.2017: Kolkata 2,35,900; Mumbai -93,800; Chennai -72,100. 21,400; Mumbai -12,200; Chennai -8,500. Liabilities as on 31.12.2017: Kolkata (c) Profit for the year ended 31.12.2017 without adjustments: Kolkata 63,350; Mumbai -- 31,900; Chennai - 27,600.