Aakash and P>aadal entered into partnership on 1st October, $\displaystyle 2023$ with the capitals of ₹ $\displaystyle 80,00,000$ and ₹ $\displaystyle 60,00,000$ respectively. They decided to share profits and losses equally. Partners were entitled to interest on capital @ $\displaystyle 10$% per annum as per the provisions of the partnership deed. P>aadal is given a guarantee that his share of profit, after charging interest on capital will not he less than ₹ $\displaystyle 7,00,000$ per annum. Any deficiency arising on that account shall he met by Aakash. The profit of the firm for the year ended 3lstMarch, $\displaystyle 2024$ amounted to ₹ $\displaystyle 13,00$,000. Prepare Profit and Loss Appropriation Account for the year ended 3lS* March, 2024.

OR

Parul and Rajul were partners in a firm, sharing profits and losses in the ratio of $\displaystyle 5$ : 3. The balance in their fixed capital accounts on 1st April, $\displaystyle 2023$ were : Parul ₹ $\displaystyle 6,00,000$ and Rajul ₹ $\displaystyle 8,00$,000. The partnership deed provided for allowing interest on capital at $\displaystyle 12$% per annum. The net profit of the firm for the year ended 31st= March, $\displaystyle 2024$ was ₹ $\displaystyle 1,26$,000. Prepare Profit and Loss Appropriation Account for the year ended 31St= March, 2024. Show your working clearly.

Books of Aakash and Baadal Profit and Loss Appropriation A/c for the year ended 31st March $\displaystyle 2024$ Dr. Cr. Particulars Amount Particulars Amount (₹) (₹) To Interest on Capital: By Profit and Loss A/c $\displaystyle 13,00,000$ (Net Profit)……………. Aakash $\displaystyle 4,00,000$ ½ $\displaystyle 7,00,000$ Baadal $\displaystyle 3,00,000$ ½ To Profit transferred to capital accounts: Aakash $\displaystyle 3,00,000$ ½ Less: Share of deficiency $\displaystyle 50,000$ ½ $\displaystyle 2,50,000$ Baadal $\displaystyle 3,00,000$ ½ Add deficiency Received from Aakash $\displaystyle 50,000$ ½ $\displaystyle 3,50,000$ $\displaystyle 13,00,000$ $\displaystyle 13,00,000$ $\displaystyle 7$ Q. (b) Parul and Rajul were partners in a firm….. Books of Parul and Rajul Profit and Loss Appropriation A/c 31st for the year ended March $\displaystyle 2024$ Dr. Cr. Particulars Amount Particulars Amount (₹) (₹) To Interest on Capital: By Profit and Loss A/c $\displaystyle 1,26,000$ (Net Profit)…………….½ Parul $\displaystyle 54,000$ ½ Rajul $\displaystyle 72,000$ ½ $\displaystyle 1,26,000$ $\displaystyle 1,26,000$ $\displaystyle 1,26,000$ Interest on Capital @$\displaystyle 12$% p.a. Parul: ₹$\displaystyle 6,00,000$ x $\displaystyle 12$/$\displaystyle 100$ = ₹$\displaystyle 72,000$ Rajul: ₹$\displaystyle 8,00,000$ x $\displaystyle 12$/$\displaystyle 100$ = ₹$\displaystyle 96,000$ Ratio of Interest on Capital $\displaystyle 3$:$\displaystyle 4$ Net Profit ₹$\displaystyle 1,26,000$ Interest on Capital in the ratio $\displaystyle 3$:$\displaystyle 4$ will be: Parul: ₹$\displaystyle 1,26,000$ x $\displaystyle 3$/$\displaystyle 7$ = ₹$\displaystyle 54,000$ Rajul: ₹$\displaystyle 1,26,000$ x $\displaystyle 4$/$\displaystyle 7$ = ₹$\displaystyle 72,000$