Question

A and B are partners with capitals of 3 4,00,000 and £ 3,00,000
respectively. If the firm earned a profit of 2 35,000 for the year ended
31- March 2019, then interest on capital (a 10%p.a. would be
appropriated as:
& 40.000 and 30,000
b) 17.500 and 17 500
x
c) < 20,000 and ? 15,000
d) None of these​

Answer 1

Answer:

Profit and Loss Appropriation a/c

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