On 1-4-2022, Brij and Nandan entered into partnership to construct toilets in government girls schools in the remote areas of Uttarakhand. They contributed capitals of ₹ 10,00,000 and ₹ 15,00,000 respectively

On 1-4-2022, Brij and Nandan entered into partnership to construct toilets in government girls schools in the remote areas of Uttarakhand. They contributed capitals of ₹ 10,00,000 and ₹ 15,00,000 respectively. Their profit sharing ratio was 2 : 3 and interest allowed on capital as provided in the Partnership Deed was 12% per annum. During the year ended 31.3.2023, the firm earned a profit of ₹ 2,00,000.

Prepare Profit and Loss Appropriation Account of Brij and Nandan for the year ended 31.3.2023.

[Ans. Interest on Capital : Brij ₹ 80,000 and Nandan ₹ 1,20,000.]