Yadu, Vidu and Radhu were partners in a firm sharing profits in the ratio of 4:3:3. Their fixed capitals on 1st April, 2018 were Rs.  9,00,000, Rs.  5,00,000 and Rs.  4,00,000 respectively. On 1st November, 2018, Yadu gave a loan of Rs.  80,000 to the firm. As per the partnership agreement: 

(i) The partners were entitled to an interest on capital @ 6% p.a. 

(ii) Interest on partners’ drawings was to be charged @ 8% p.a. 

The firm earned profits of Rs.  2,53,000 (after interest on Yadu’s loan) during the year 2018 – 19. Partners’ drawings for the year amounted to Yadu : Rs. 80,000, Vidu : Rs. 70,000 and Radhu : Rs. 50,000. 

 Prepare Profit and Loss Appropriation Account for the year ending 31st March, 2019.  

Marks-4, CBSE:2019-20/Main/01/Q-15* 


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