90. Three Chartered Accountants Abhijit, Baljit and Charanjit form partnership, profits being shared in the ratio of 3: 2:1 subject to the following:.

(a) Charanjit’s share of profit guaranteed to be not less than ₹15,000 pa.

(b) Baljit gives a guarantee to the effect that gross fee earned by him for the firm shall be equal to the average gross fee of the preceding five years when he was carrying on profession alone, which on an average works out at ₹25,000.

The profit for the first year of the partnership is ₹75,000. The gross fee earned by Baljit for the firm is ₹16,000.  You are required to show Profit & Loss Appropriation Account after giving effect to the above.

(NCERT, Modified)