Atul and Mithun are partners sharing profits in the ratio of 3 : 2. Balances as on 1st April 2023 were as follows:
Capital Accounts (Fixed): Atul – ₹ 5,00,000 and Mithun – ₹ 6,00,000.
Loan Account: Atul – ₹ 3,00,000 (Cr.) and Mithun – ₹ 2,00,000 (Dr.)
It was agreed to allow and charge interest @ 8% p.a. Partnership Deed was provided to allow interest on capital @ 10% p.a. Interest on Drawings was charged ₹ 5,000 each.
Profit before giving effect to above was ₹ 2,28,000 for the year ended 31st March 2024.
Prepare Profit and Loss Appropriation Account.
Solution:
