Parul and Rajul were partners in a firm, sharing profits and losses in the ratio of 5 : 3. The balance in their Fixed Capital Accounts on 1st April, 2023 were
Parul and Rajul were partners in a firm, sharing profits and losses in the ratio of 5 : 3. The balance in their Fixed Capital Accounts on 1st April, 2023 were: Parul ₹ 6,00,000 and Rajul *8,00,000. The partnership deed provided for allowing interest on capital at 12% per annum. The net profit of the firm for the year ended 31st March, 2024 was ₹ 1,26,000.
Prepare Profit & Loss Appropriation Account for the year ended 31st March, 2024. Show your working clearly.
(CBSE 2025)
[Ans: Interest on Capital: Parul— 54,000; Rajul- 72,000.]
Anurag Pathak Answered question
