A, B and C were partners in a firm having capitals of  50,000 ;  50,000 and   1,00,000 respectively. Their Current Account balances were A:   10,000; B:   5,000 and C:   2,000 Dr. .   According to the Partnership Deed the partners were entitled to an interest on Capital @ 10% p.a. C being the working partner was also entitled to a salary of 12,000 p.a. The profits were to be divided as:

a The first 20,000 in proportion to their capitals.

b Next 30,000 in the ratio of 5 : 3 : 2.

c Remaining profits to be shared equally.

The firm earned net profit of 1,72,000 before charging any of the above items.

Prepare Profit and Loss Appropriation Account and pass necessary Journal entry for the appropriation of profits