Simran and Reema are partners sharing profits in the ratio of 3 : 2. Their capitals as on 1st April 2022 were ₹ 2,00,000 each whereas Current Accounts had balances of ₹ 50,000 and ₹ 25,000 respectively. Interest on capital is to be allowed @ 5% p.a. Net Profit of the firm for the year ended 31st March 2023 was ₹ 3,00,000.

Pass the Journal entries for interest on capital and distribution of profit. Also prepare Profit and Loss Appropriation Account for the year.

Anurag Pathak Changed status to publish April 11, 2024
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