Q. ​  Asha, Nisha and Jagat are partners in a firm. On April 1, 2013 the balance in their capital accounts stood at Rs. 8,00,000, Rs.6,00,000 and Rs. 4,00,000 respectively. They shared profits in the  
proportion of 3:2:1. Partners are entitled to interest on capital @6% p.a and salary to Asha @Rs. 4,000 per month and a commission of Rs. 6,000 per quarter to Jagat as per the provisions of the partnership deed.  
Asha's share of profit excluding interest on capital and salary is guaranteed at Rs. 60,000 p.a. Jagat's share of profit including interest on capital but excluding salary is guranteed at Rs. 50,000 p.a.
Any deficiency arising in that account shall be met by Nisha. The profit of the firm for the year ended March 31, 2014 amounted to Rs.3,00,000. 
Prepare Profit and loss Appropriation for the year ended March 31,2014. 

Dear Student,
Profit and Loss Appropriation Account
for the year ended 31.03.2014
Dr.     Cr.
Particulars Amount
Particulars Amount
Interest on Capital A/c:   Profit and Loss A/c 3,00,000
Asha 48,000      
Nisha 36,000      
Jagat 24,000 1,08,000    
Asha’s Capital A/c (Salary) 48,000    
Jagat’s Capital A/c (Commission) 24,000    
Profit transferred to:      
Asha’s Capital A/c 60,000      
Nisha’s Capital A/c(40,000-6,000) 34,000      
Jagat’s Capital A/c(20,000+6,000) 26,000 1,20,000    
  3,00,000   3,00,000


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