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.

Anurag Pathak Changed status to publish April 11, 2024
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