Q. 8. A and B are partners in a firm sharing profits or losses in the ratio of 2:3 entitled to 10% p.a. interest on his capital. B is entitled a commission of 10% on ne capitals of 4,00,000 and 8,00,000 respectively on 1st April, 2022. Each partner profit remaining after deducting interest on capital but before charging interest on capital and after charging all commissions. The profit for the year ended commission. A is entitled a commission of 8% of net profit remaining after deducting 31st March, 2023 prior to calculation of interest on capital was 6,00,000. Prepare Profit and Loss Appropriation Account. [Ans. Share of Profit A 1,60,000 and B 2,40,000; Commission to B 48,000 and to A 32,000.]
