Kamal and Kapil are partners having fixed capitals of Rs. 5,00,000 each as on 31st March, 2018. Kamal introduced further capital of Rs. 1,00,000 on 1st October, 2018 whereas Kapil withdrew Rs. 1,00,000 on 1st October, 2018 out of capital. Interest on capital is to be allowed @ 10% p.a. The firm earned net profit of Rs. 6,00,000 for the year ended 31st March, 2019. Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account. – Swamonk EduCare

Kamal and Kapil are partners having fixed capitals of Rs. 5,00,000 each as on 31st March, 2018. Kamal introduced further capital of Rs. 1,00,000 on 1st October, 2018 whereas Kapil withdrew Rs. 1,00,000 on 1st October, 2018 out of capital. Interest on capital is to be allowed @ 10% p.a. The firm earned net profit of Rs. 6,00,000 for the year ended 31st March, 2019. Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account.

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