Akhil and Nikhil were partners sharing profits and losses in the ratio of 3:2. Their fixed capitals were ₹1,00,000 and ₹80,000 respectively. Interest on capital was agreed @ 6% p.a. Nikhil was to be allowed an annual salary of ₹9,200. During the year 2021-22, the net profit prior to the calculation of interest on capital but after charging Nikhil’s salary amounted to ₹1,20,000.

Prepare Profit and Loss Appropriation Account of the firm for the year ending 31st March, 2022.

Marks-3, CBSE:2022-23/Zone-5/Set-1/Q-18*