Question

a and b are partners capital is 100000 and 20 capital a 60000 interest on capital is payable 6% per annum b is get salary of 3000 per month net profit for the year is 80000 prepare profit and loss appropriation account​

Answer 1

Profit and Loss Appropriation a/c

( for the year ended......)

Dr. Cr.

Particulars Amount Particulars Amount

To Interest on capital

- A

- B

6000

3600 By Profit a/c

(before interest and salary) 80000

To Salary to B (3000*12) 36000

To Profit transferred to:

- A's Capital a/c

- B's Capital a/c

17200

17200

80000 80000