21. Kamal and Kapil are partners having fixed capitals of ₹5,00,000 each as on 1st April, 2024. Kamal introduced further capital of ₹1,00,000 on 1st January, 2025 whereas Kapil withdrew ₹1,00,000 on 1st January, 2025 out of capital.

Interest on capital is to be allowed @ 10% p.a.

The firm earned net profit of ₹6,00,000 for the year ended 31st March, 2025.

Pass the Journal entry for allowing interest on capital, transfer entry and prepare Profit & Loss Appropriation