A and B entered into partnership on 1st April, 2018 without any Partnership Deed. They
introduced capitals of 5,00,000 and 3,00,000 respectively. On 31st October, 2018, A advanced
2.00.000 as loan to the firm without any agreement as to interest.
Profit and Loss Account for the year ended 31st March, 2019 showed a profit of * 4,30,000, but
the partners could not agree upon the amount of interest on loan to be charged and the basis
of division of profits.Pass a Journal entry for distribution of the profit between the partners and prepare Capital Accounts of both the partners and Loan Account of A.
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Refer to above attachment...
1. There is no partnership deed between A and B as per the provision of partnership Act, intrest on A'sLoan will be
provided to A for 5 month at the rate 6% p.a.
Interest on A,s Loan
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