Class 12th Account chapter 1 question 20 solution (ts grewal)

Question 20.                                                        Bhanu and Partap are partners sharing profits equally. Their fixed capitals as on 1st April, 2023 were ₹ 8,00,000 and ₹ 10,00,000 respectively. Their drawings during the year were ₹ 50,000 and ₹ 1,00,000 respectively. Interest on Capital is a charge and is to be allowed @ 10% p.a. and interest on drawings is to be charged @ 15% p.a. Net Profit for the year ended 31st March, 2024 before giving effect to the above) was ₹ 1,20,000.

Prepare Profit & Loss Appropriation Account.

[Ans.: Loss— ₹ 48,750; Dr. Bhanu’s Current A/c and Partap’s Current A/c by ₹ 24,375 each.]

SOLUTION :-