Simran and Reema are partners sharing profits in the ratio of 3: 2. Their capitals as on 31st March, 2018 were Rs. 2,00,000 each whereas Current Accounts had balances of Rs. 50,000 and Rs. 25,000 respectively interest is to be allowed @ 5% p.a. on balances in Capital Accounts. The firm earned net profit of Rs. 3,00,000 for the year ended 31st March, 2019. Pass the Journal entries for interest on capital and distribution of profit. Also prepare Profit and Loss Appropriation Account for the year.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site it will imply that you agree with Swamonk EduCare's Terms of Use .Ok
