Profit and Loss Appropriation A/c

Which one of the following items is recorded in the Profit and Loss Appropriation A/C?

• Interest on loan

• Partners' salary

• Rent paid to partners

• Manager's commission

____________ is an extension of Profit and Loss A/c

• Partner's Capital A/c

• Division of profit

• Profit and Loss Appropriation A/c

• Interest on loan A/c

Vidit and Seema were partners in a firm sharing profits and losses in the ratio of 2:1. Their capitals were Rs. 1,20,000 and Rs. 2,40,000 respectively. They were entitled to interest on capital @ 10% p.a. The interest on Vidit's capital will be Rs.___________

• 12,000

• 10,000

• 24,000

• 6,000

Interest on Partner's drawings is credited to ________

• Interest A/c

• Profit and Loss Appropriation A/c

• Profit and Loss A/c

• Partner's Capital A/c

Profit and Loss Appropriation Account is prepared for _________

• reserve fund

• none of these

• net profit

• divisible profit