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Kamal and Kapil ar partners having fixed capitals of ₹ 5,00,000 each as on 31st March, 2017. Kamal introduced further captial of ₹ 1,00,000 on 1st October, 2017 whereas Kapil withdrew ₹ 1,00,000 on 1st October, 2017 out of capital.Interest on capital is to be allowed 10% p.a.The firm earned net profit of ₹ 6,00,000 for the year ended 31st March 2018.Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account.

Answer» Kamal and Kapil ar partners having fixed capitals of ₹ 5,00,000 each as on 31st March, 2017. Kamal introduced further captial of ₹ 1,00,000 on 1st October, 2017 whereas Kapil withdrew ₹ 1,00,000 on 1st October, 2017 out of capital.

Interest on capital is to be allowed 10% p.a.

The firm earned net profit of ₹ 6,00,000 for the year ended 31st March 2018.

Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account.


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