56. Aditi, Bobby and Krish were partners in a firm sharing profits and losses in the ratio of 5:3:2. Their capital were ₹5,00,000, ₹4,00,000 and ₹2,00,000 respectively. The partnership deed provided for the following:

(a) interest on capital @ 10% per annum.

(b) interest on drawings @ 6% per annum.

(c) interest on partner’s loan to the firm @ 9% per annum.

During the year, Aditi had withdrawn ₹60,000 and Bobby ₹50,000. On 1st September, 2021, Krish had given loan of ₹40,000 to the firm.

Pass necessary Journal entries in the books of the firm for the following transactions for the year ended 31st March, 2022:

(i) Allowing interest on Bobby’s capital.

(ii) Charging interest on Aditi’s drawings.

(iii) Providing interest on Krish’s loan to the firm.

Also pass transfer entries in the Profit & Loss Account/Profit & Loss may be. Appropriation Account, as the case may be.

(CBSE 2023)