Required: Profit and Loss appropriation account to allocate the profit and necessary journal entries.
Required: Profit and Loss appropriation account to allocate the profit and necessary journal entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please please answer that please early please
![Q.No.3. Mr. A and Mr. B start a business on 01st May,2021, with capital of
2,500,000 and 300,000. According to agreement Mr. A is entitled for a salary of
40,000 whereas another partner is entitled for 35,000. Mr. B gave a loan to the
business and interest on capital is allowed 5% p.a. During their first fiscal year
of partnership, they earned a net profit of Rs. 500000.
Required:
Profit and Loss appropriation account to allocate the profit and necessary journal
entries.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c766d52-17b6-4098-be54-3ba302cb8f4d%2F4b50bd64-ac39-44c4-96b0-525658b47a53%2Fbmc9evb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q.No.3. Mr. A and Mr. B start a business on 01st May,2021, with capital of
2,500,000 and 300,000. According to agreement Mr. A is entitled for a salary of
40,000 whereas another partner is entitled for 35,000. Mr. B gave a loan to the
business and interest on capital is allowed 5% p.a. During their first fiscal year
of partnership, they earned a net profit of Rs. 500000.
Required:
Profit and Loss appropriation account to allocate the profit and necessary journal
entries.
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