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Bhanu and Partab are partners sharings profits eqully. Their fixed capitals as on 1st April, 2017 are ₹ 8,00,000 and ₹ 10,00,000 respectively. Their drawings the year were ₹ 50,000 and ₹ 1,00,000 respectively. Interest on Capital is a charge and is to be allowed @ 10% p.a. and interest on drawings is to be charged @ 15% p.a. Profit for the year ended 31st March, 2018 was ₹ 1,20,000. Prepare Profit and Loss Appropriation Account. |
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Answer» and Loss APPROPRIATION is calculated belowExplanation:Bhanu’s drawings PER year = Rs. 50,000 Partab’s drawings per year = Rs. 1,00,000 Calculation of InterestInterest will be calculated at 15% per annum. Bhanu’s interest ION drawings Partab’s interest ion drawings Calculation of Interest based on their capitalInterest on capital will be calculated at the RATE of 10% per annum. Fixed capitals for each ONE of them is given as 8,00,000 and 10,00,000. Bhanu’s Partab’s Total interest will be (Rs. 80000 + Rs. 100000) i.e., Rs. 1,80,000 |
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