Profit and Loss Appropriation Account

A and B are partners agreed to allow interest on capital ₹6,000 and ₹3,600 respectively. Salary to A ₹36,000. Net profit of the firm is ₹80,000. Calculate A's share of profit

• ₹40,000

• ₹17,000

• ₹17,200

• ₹40,200

X and Y are partner sharing profit in the ratio 3:2 with capital of ₹8,00,000 and ₹6,00,000 respectively. Interest on capital is agreed @5% p.a. Y is to be allowed an annual salary of ₹60,000. Profit for the year was ₹3,00,000. Show the division of profit among X and Y.

• X ₹1,80,000 ; Y ₹1,20,000

• X ₹1,02,000 ; Y ₹68,000

• X ₹85,000 ; Y ₹85,000

• None of above

Name the accounts where interest on capital is shown:

• profit and loss appropriation account

• partner's capital account

• profit and loss appropriation account and partner's capital account

• None of above

Which one of the following is correct entry of interest on capital:

• Debit: Interest on capital , Credit: Partner's capital account

• Debit: Profit and loss appropriation account , Credit: Interest on capital

• Both 1 and 2

• None of above

Interest on partner's drawing is shown in which side of prot and loss appropriation account:

• Debit Side

• Credit Side

• Either Credit or Debit Side