Question

Distribution of Net Profit : Profit and Loss Appropriatlon
4. A, B and C have capitals of 60,000, 30,000 and 12,000 respectively, on which they are
entitled to get interest at 5% p.a. The profits for the year before charging interest on capital
amounted to 34,000. Prepare Profit & Loss Appropriation A/c, if they share profits and losses
in the ratio of 6 :3 : 1.
3 17 340 R4 8,670; C-2,890]
of Profit
A​

Answer 1

Explanation:

entitled to get interest at 5% p.a. The profits for the year before charging interest on capital

amounted to 34,000. Prepare Profit & Loss Appropriation A/c, if they share profits and losses

in the ratio of 6 :3 : 1.

3 17 340 R4 8,670; C-2,890]

of Profit

A