16. X and Y are partners sharing profits in the ratio of 3:2 with capitals of ₹8,00,000 and ₹6,00,000 respectively. Interest on capital is to be allowed @5 % p.a. Y is to be allowed an annual salary of ₹60,000 which has not been withdrawn. Profit for the year ended 31st March, 2025 before interest on capital but after charging Y’s salary was ₹2,40,000.

A provision of 5% of the net profit is to be made in respect of commission to the Manager. 

Prepare Profit & Loss Appropriation Account showing the allocation of profits.