Kamal and Kapil are partners having fixed capitals of ₹ 5,00,000 each as on 31st March 2022. Kamal introduced further capital of ₹ 1,00,000 on 1st October 2022 whereas Kapil withdrew ₹ 1,00,000 on 1st October 2022 out of capital.

Interest on capital is to be allowed @ 10% p.a.

The firm earned a net profit of ₹ 6,00,000 for the year ended 31st March 2023.

Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account.

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