On 01.04.2022, Ravi, Kavi and Avi started a partnership firm with fixed capitals of ₹6,00,000, ₹6,00,000 and ₹3,00,000 respectively. The partnership deed provided for the following:
- Interest on capital @ 10% per annum.
- Interest on drawings @ 12% per annum.
- An annual salary of ₹1,20,000 to Avi.
- Profits and losses were to be shared in the ratio of their capitals.
The net profit of the firm for the year ended 31.03.2023 was ₹3,08,000 Interest on partners’ drawings was Ravi ₹4,800, Kavi ₹4,200 and Avi ₹3,000
Prepare Profit and Loss Appropriation Account of Ravi, Kavi and Avi for the year ended 31.03.2023.
Marks-3, CBSE:2022-23/Compartment/Q-18