FUNDAMENTALS OF PARTNERSHIP FIRM TS GREWAL (2022-23) CBSE

QUESTION: 23

Ashish and Aakash are partners sharing profits in the ratio of 3:2. Their capital Accounts had credit balances of ₹ 5,00,000 and ₹ 6,00,000. respectively as on 31st March, 2022 after debit of drawings during the year of ₹ 1,50,000 and ₹ 1,00,000 respectivley. Net Profit for the year ended 31st March, 2022 was ₹ 5,00,000.

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

Pass the Journal entry for interest on capital and prepare Profit and loss appropriation account.

Answer: