Question

According to profit and loss account the net profit for the year is 150000 the total interest on partners capital is 18000 and interest on partners drawing is is 2000 the net profit as per profit and Loss appropriation account will be

Answer 1

Answer:

the actual profit will be = 1,50,000 - 18,000 = 1,32,000

and after interest on drawings = 1,32,000 + 2000 = 1,34,000

Answer 2

Answer:

There will be no profit

Explanation:

Profit = 150000

Interest on partners capital = 180000

Interest on Drawings. = 2000

(Assuming the profit sharing ratio between the partners to be equal i.e 1:1)

They will share the profit proportionately i.e

150000 + 2000 = 152000*1/2 = 76000 + 76000