Question

08. A and B are partners. The net divisible profit as per Profit and Loss
Appropriation A/c is Rs 2,50,000. The total interest on partner's drawings is
Rs.4,000. A's salary is Rs.4,000 per quarter and B's salary is Rs.40,000 per
annum. Calculate the net Profit/Loss earned during the year.
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Answer 1

Net Profit during the year = Divisible profits + Salary to partners – Interest on Drawings = 2,50,000 + 16,000 + 40,000 – 4000 = Rs.3,02,000