Question

A and B are partners with the capital of file light and 3 respectively interest payable on capital was 10% per annum find interest on capital for the both the partners when the profit earned by the firm is 48000​

Answer 1

Answer:

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