Nirmal and Pawan are partners sharing profits in the ratio of 3 : 2. The firm had given a loan to Pawan of ₹ 5,00,000 on 1st April 2024. Interest was to be charged @ 10% p.a. The firm took a loan of ₹ 2,00,000 from Nirmal on 1st December 2024. Before giving effect to the above, the firm incurred a loss of ₹ 10,000 for the year ended 31st March 2025. Determine the amount to be transferred to the Profit and Loss Appropriation Account.
Solution
