|(i) Transfer 10% of distributable profits to reserve fund.|
|(ii) Interest on capitals @ 6% p.a.|
|(iii) Interest on drawings @ 6% p.a. Drawings being X Rs. 40,000 and Y Rs. 30,000. The partners decided to provide clean drinking water and build toilets in a nearby school.|
Profit and Loss Appropriation Account Dr for the year ending 31st March, 2017 Cr
Particulars Amt (Rs.) Particulars Amt (Rs.) To Interest on Capital A/cs By Net Profit as per Profit and Loss A/c 3,75,000 X \[\left( 2,00,000\times 6/100 \right)\] 12,000 By Interest on Drawings A/cs Y \[\left( 1,50,000\times 6/100 \right)\] 9,000 21,000 X \[(40,000\times 6/100\times 6/12)\] 1,200 To Reserve Fund A/c 35,610 Y \[(30,000\times 6/100\times 6/12)\] 900 To Profit Transferred to Partners' Capital A/cs X 1,60,245 Y 1,60,245 3,20,490 3,77,100 3,77,100
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