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Amit and Vijay started a partnership business on 1st April,2017. Their capital contributions were ₹ 2,00,000 and ₹ 1,50,000 respectively. The Partnership Deed provided that: (a) Interest on capital be allowed @ 10% p.a. (b) Amit to get a salary of ₹ 2,000 per month and Vijay ₹ 3,000 per month. (c) Profits are to be shared in the ratio of 3 : 2. Profit for the year ended 31st March, 2018 befor above appropriations was ₹ 2,16,000. Interest on drawings amounted to ₹ 2,200 for Amit and ₹ 2,500 for Vijay. Prepare Profit and Loss Appropriation Account.

Answer»

Notes:1. Calculation of Interest on CAPITAL Interest on Amit's Capital = Interest on VIJAY's Capital = 2. Calculation of PROFIT Share of each PARTNER Divisible Profit = 2,16,000 + 4,700 - 35,000 - 60,000 = 1,25,700.Profit Sharing = 3 : 2.Amit's Profit Share = Vijay's Profit Share =



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