PROFIT AND LOSS APPROPRIATION ACCOUNTPROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars AmountPROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars Amount To INTEREST on capital PROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars Amount To Interest on capital X= 50,000PROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars Amount To Interest on capital X= 50,000To SalaryPROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars Amount To Interest on capital X= 50,000To SalaryY= 30,000 80,000 By NET profit 80,000PROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars Amount To Interest on capital X= 50,000To SalaryY= 30,000 80,000 By net profit 80,000 Total 80,000 Total 80,000PROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars Amount To Interest on capital X= 50,000To SalaryY= 30,000 80,000 By net profit 80,000 Total 80,000 Total 80,000Interest on X's capital = 20,00,000*8%=1,60,000PROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars Amount To Interest on capital X= 50,000To SalaryY= 30,000 80,000 By net profit 80,000 Total 80,000 Total 80,000Interest on X's capital = 20,00,000*8%=1,60,000Salary to Y = 8000*12 = 96,000PROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars Amount To Interest on capital X= 50,000To SalaryY= 30,000 80,000 By net profit 80,000 Total 80,000 Total 80,000Interest on X's capital = 20,00,000*8%=1,60,000Salary to Y = 8000*12 = 96,000Total = 2,56,000PROFIT AND LOSS APPROPRIATION ACCOUNT Particulars Amount Particulars Amount To Interest on capital X= 50,000To SalaryY= 30,000 80,000 By net profit 80,000 Total 80,000 Total 80,000Interest on X's capital = 20,00,000*8%=1,60,000Salary to Y = 8000*12 = 96,000Total = 2,56,000Net profits available is less than the appropriations to be made. So,the appropriations are to be made in the ratio of interest and salary i.e 5:3.