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A and B share profits in the ratio 3:2. Interest on capital due to A is ₹12000 and to B is ₹8000. Remaining profit is ₹30000. What total net profit will be shown in the Profit and Loss Appropriation Account?

Answer and explanation

Correct answer: ₹50000

Net profit equals remaining profit plus appropriations before distribution. In exams identify residual profit and appropriations separately.

Related tags

PartnershipAdjustmentsInterest On CapitalPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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