Sajal and Kajal are partners sharing profits and losses in the ratio of 2 : 1. On 1st April, 2017 their Capitals were: Sajal–₹ 50,000 and Kajal–₹ 40,000.Prepare Profit and Loss Appropriation Account and the Partners' Capital Accounts at the end of the year after considering the following items:(a) Interest on Capital is to be allowed 5% p.a.(b) Interest on the loan advanced by Kajal for the whole year, the amount of loan being ₹ 30,000.(c) Interest on partners' drawings 6% p.a. Drawings: Sajal ₹ 10,000 and Kajal ₹ 8,000.(d) 10% of the divisible profit is to be transferred to Reserve.The net profit for the year ended 31st March, 2018 ₹ 68,460.Note: Net profit means net profit after debit of interest on loan by the partner.

Sajal and Kajal are partners sharing profits and losses in the ratio o

1.	Sajal and Kajal are partners sharing profits and losses in the ratio of 2 : 1. On 1st April, 2017 their Capitals were: Sajal–₹ 50,000 and Kajal–₹ 40,000.Prepare Profit and Loss Appropriation Account and the Partners' Capital Accounts at the end of the year after considering the following items:(a) Interest on Capital is to be allowed 5% p.a.(b) Interest on the loan advanced by Kajal for the whole year, the amount of loan being ₹ 30,000.(c) Interest on partners' drawings 6% p.a. Drawings: Sajal ₹ 10,000 and Kajal ₹ 8,000.(d) 10% of the divisible profit is to be transferred to Reserve.The net profit for the year ended 31st March, 2018 ₹ 68,460.Note: Net profit means net profit after debit of interest on loan by the partner.
Answer» Sajal and Kajal are partners sharing profits and losses in the ratio of 2 : 1. On 1st April, 2017 their Capitals were: Sajal–₹ 50,000 and Kajal–₹ 40,000. Prepare Profit and Loss Appropriation Account and the Partners' Capital Accounts at the end of the year after considering the following items: (a) Interest on Capital is to be allowed 5% p.a. (b) Interest on the loan advanced by Kajal for the whole year, the amount of loan being ₹ 30,000. (c) Interest on partners' drawings 6% p.a. Drawings: Sajal ₹ 10,000 and Kajal ₹ 8,000. (d) 10% of the divisible profit is to be transferred to Reserve. The net profit for the year ended 31st March, 2018 ₹ 68,460. Note: Net profit means net profit after debit of interest on loan by the partner.

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