Ajay, Bijay, and Chandan are partners in a firm with capitals of ₹ 1,50,000; ₹ 1,20,000, and ₹ 90,000 respectively. Their Partnership Deed provides as follows:

(i) Interest on Capital to be allowed @ 10% p.a.

(ii) Interest on drawings to be charged @ 10% p.a.

(iii) Bijay and Chandan each are to be paid a salary @ ₹ 1,500 per month.

(iv) Ajay is to be paid a commission of 5% of the net profit.

(v) Divisible (remaining) profits are to be distributed as follows: 40% to Ajay; 30% to Bijay; 20% to Chandan and 10% carried to General Reserve.

Net Profit for the year ended 31st March 2023 was ₹ 1,50,000. Ajay withdrew ₹ 3,000 per month in the beginning of each month, Bijay withdrew ₹ 3,000 per month in the middle of each month and Chandan withdrew ₹ 3,000 per month at the end of each month.

Prepare Profit and Loss Appropriation Account for the year ended 31st March 2023.

Anurag Pathak Changed status to publish April 15, 2023