Question

X and Y are partners sharing profits and losses in the ratio of 7:3. Their capital accounts as 1st April, 2018 stood at X  -Rs. 5,00,000; Y-  Rupees 400000.  Partners are allowed interest on capital at the rate of 5% per annum.     Drawings of X and Y during the year ended  31st March, 2019. were rupees 72000 and rupees 50000 respectively.   Profits for the year before allowing interest on capital and salary to  Y @ rupees 5000 per month amounted to rupees 800000.   10% of the divisible profit is to be set a aside as General Reserve. Prepare profit and loss appropriation account.                                              

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Answer 1

Answer:

profit is 800000 loss is 72000