Pappu and Munna are partners in a firm sharing profits in the ratio of 3 : 2. The partnership deed provided that Pappu was to be paid salary of ₹ 2,500 per month

Pappu and Munna are partners in a firm sharing profits in the ratio of 3 : 2. The partnership deed provided that Pappu was to be paid salary of ₹ 2,500 per month and Munna was to get a commission of ₹ 10,000 per year. Interest on capital was to be allowed @ 5% per annum and interest on drawings was to be charged @ 6% per annum. Interest on Pappu’s drawings was ₹ 1,250 and on Munna’s drawings ₹ 425. Capital of the partners were ₹ 2,00,000 and ₹ 1,50,000 respectively, and were fixed. The firm earned a profit of ₹ 90,575 for the year ended 31-3-2024.

Prepare Profit and Loss Appropriation Account fo the firm.

[Ans. Share of Profit : Pappu ₹ 20,850 and Munna ₹ 13,900.]