Arun and Barun were partners sharing profits in the ratio of 3 : 2. Their capitals were ₹50,000 and ₹30,000 respectively.
Partnership deed provided for interest on capital @ 6% p.a. to Arun and Barun and quarterly salary of ₹1,000 to Barun. Arun had given a loan of ₹1,00,000 on 1st October, 2021 to the firm without any agreement about interest. For the year 2021 22, the profits earned were ₹26,800.
Prepare Profit and Loss Appropriation Account of the firm for the year ended 31st March, 2022.