Question

A and B are partners with a profit-sharing ratio of 2 : 1 and capitals of ₹3,00,000 and ₹2,00,000 respectively. They are allowed 6% p.a. interest on their capitals and are charged 10% p.a. interest on their drawings. Their drawings during the year were A ₹60,000 and B ₹40,000. B’s share of net profit as per profit and loss appropriation account amounted to ₹40,000. Net Profit of the firm before any appropriations was: (1) (A) ₹1,22,000 (B) ₹1,13,000 (C) ₹1,17,000 (D) ₹1,45,000​

Answer 1

Add: Interst on capital= A - 18000

B-12000

profit..=120000

150000

Less: Interst on drawing=A- 3000

B-2000

145000 ans...

Answer 2

option D is correct hope it helped