Please answer Q15 as quick as possible
15. Reema and Seema are partner sharing profit equally. The partnership deep provides that both Reema and Seema will get monthly salary of Rs. 5,000 each. Interest on Capital will be allowed @ 5% P. A and interest on Drawings Will be Charged @ 10% p.a. Their capitals were Rs. 5,00,000 each and drawing during the year were Rs. 60.000 each.
The firm incurred a loss of Rs. 1,00.000 during the year ended 31st March, 2018.
Prepare Profit and loss Appropriation Account for the year ended 31st March. 2018.
Profit and Loss Appropriation Account
for the year ended March 31, 2018
|Profit & Loss A/c||1,00,000||Interest on Drawings A/c:|
|Seema||60,000||1,20,000||Loss transferred to|
|Interest on Capital:||Reema||1,32,000|