Reema and Seema are partners sharing profits equally. The Partnership Deed provides that both Reema and Seema will get a monthly salary of ₹ 15,000 each, Interest on Capital will be allowed @ 5% p.a. and Interest on Drawings will be charged @ 10% p.a. Their capitals were ₹ 5,00,000 each and drawings during the year were ₹ 60,000 each.
The firm incurred net loss of ₹ 1,00,000 during the year ended 31st March 2024.
Prepare Profit and Loss Appropriation Account for the year ended 31st March 2024.
Solution:
