Question

Palash and Prnjalare partners without any greement on 1st january and they introduced capital 10,000 - and 5,000 - Rs. Respectively. On 31 August2020 Palash advances to the firm Rs. 4,000/- on loan. The profit and loss account for the year 2020 shows Profit of Rs. 4,000/- the partners are not agreed upon the question of interest and division of Profit. Prepare Profit and Loss account​

Answer 1

Notes : Net profit = profit-rent-interest on loan

= 1,35,000-24,000-300

= 1,10,700