Provide the solution for the given solution

Solution:

  Dr                                      Profit & Loss Appropriation A/c                                       Cr
PARTICULARS AMOUNT PARTICULARS AMOUNT
To Interest on Capital A/c   By Net Profit (29400 - 1200) 28200
Robin - 3000      
Raaj - 1200 4200    
To Robin's Salary A/c 10000    
To Raaj 's Salary A/c 7000    
To Profit t/f to       
Robin - 5000      
Raaj - 2000 7000    
  28200   28200
Working Notes-
1. Interest on Robin's loan = 20000 x 6% = Rs 1200
2. Net Profit after interest on loan = Net profit - Interest on loan 
                                                      = 29400 - 1200 = Rs 28200

  • 0
What are you looking for?