A and B have capitals of Rs. 2,00,000 and Rs. 1,00,000 respectively and interest
on capital is to be allowed @ 10% p.a. Their profit-sharing ratio is 3: 2 and profit
(before interest) for the year is Rs. 18,000. Showing your calculations clearly,
prepare ‘Profit and Loss Appropriation Account’ of A and B for the year ended 31s t
March, 2021
Answer:
loss =12000,A’s loss t/to his capital account is Rs 7200 and B’s loss t/to his capital account is Rs 4800.