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A and B are partners. A’s Capital is ₹ 1,00,000 and B’s Capital is ₹ 60,000. Interest on capital is payable @ 6% p.a. B is entitled to a salary of ₹ 3,000 per month. Profit for the current year before interest and salary to B is ₹ 80,000. Prepare Profit and Loss Appropriation Account.

Answer»

and Loss appropriate amount is calculated below:EXPLANATION:Amount A has given to the FIRM= Rs, 1,00,000 Amount B gave to the firm = Rs, 60,000 INTEREST on capital is to be calculated at rate of 6% per annum A’s Interest = 6% of 1,00,000= 6,000 B’s Interest = 6% of 60,000= 3600  Total is 9,600 (6,000+3600) B’s Salary for COMPLETE year Profit given in the question is Rs. 80,000  Each partner’s profit will be 17,200 Thus, the divisible profit will be



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