Class 12th Account chapter 1 question 18  Ts grewal

Q18.

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 Accounts: Atul – ₹ 3,00,000 (Cr.) and Mithun – ₹ 2,00,000 (Dr.)

It was agreed to allow and charge interest @ 8% p.a. Partnership Deed 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 & Loss Appropriation Account.

[Ans.: Share of Profit: Atul – ₹ 72,000; and Mithun – ₹ 48,000]