Question

A and B are the partners sharing profit and losses in the ratio 3 by 2 with capital of rupees 200000 and 100000 respectively interest on capital is to be allowed @ 6% per annum profit profit for the year was RS 50,000​

Answer 1

What is the question?

Do we need to prepare profit and loss appropriation account??

If yes then

In Cr side :

Net profit = 50000

In Dr side:

Int on capital

A= 200000*6%=12000

B=100000*6%=6000

Divisible profit :

A= 18000*3/5=10800

B=18000*2/5=7200