Question

Atul and Mithun are partners sharing profit in ratio 3:2, balance is on 1st April 2019 were as follows capital account (fixed) :- Atul 500000 and Mithun 600000 .
loan account of Atul 3 lakh (Cr) and Mithun 2 lakh (Dr).
it was agreed to allow and charge interest @ 8% per annum .partnership deed provided to allow interest on capital @ 10% per annum interest on drawing was changed rupees 5000 each.
profit before giving effect to above was 2,28,000 for year ended 31st March 2020. prepare profit and loss appropriation account​

Answer 1

Answer:

Explanation:

Profit & loss A/c

To interest        24000         By Profit                     228000

To Net Profit     220000       By Int. on loan             16000

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                            244000                                     244000

        P & L Appropiate A/c

To interest on Capital                                  By P& L App A/c     220000

Atul 50000                                                    By Int. on Drawing

Mithun  60000            110000                            Atul    5000

To Divisible Profit                                                  Mithun  5000       10000

Atul   72000

Mithun  48000

                                    120000

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                                   230000                                                      230000

Answer 2

Answer:

Explanation:

Profit & loss A/c

To interest        24000         By Profit                     228000

To Net Profit     220000       By Int. on loan             16000

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                           244000                                     244000

       P & L Appropiate A/c

To interest on Capital                                  By P& L App A/c     220000

Atul 50000                                                    By Int. on Drawing

Mithun  60000            110000                            Atul    5000

To Divisible Profit                                                  Mithun  5000       10000

Atul   72000

Mithun  48000

                                   120000

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                                  230000                                                      230000