A and B are partners in a firm sharing profits or losses in the ratio of 2 : 3 with capitals of ₹ 4,00,000 and ₹ 8,00,000 respectively on 1st April, 2023. Each partner is entitled to 10% p.a

A and B are partners in a firm sharing profits or losses in the ratio of 2 : 3 with capitals of ₹ 4,00,000 and ₹ 8,00,000 respectively on 1st April, 2023. Each partner is entitled to 10% p.a. interest on his capital. B is entitled a commission of 10% on net profit before charging any commission. A is entitled a commission of 8% of net profit after charging all commissions. Net profit for the year ended 31st March, 2024 was ₹ 4,80,000.

Prepare Profit and Loss Appropriation Account.

[Ans. Share of Profit A ₹ 1,12,000 and B ₹ 1,68,000; Commission to B ₹ 48,000 and to A ₹ 32,000.]