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Net profit is Rs 420000. Interest on drawings is Rs 18000. Interest on capital is Rs 75000 salary is Rs 60000 reserve is Rs 45000 and commission is Rs 24000. What will be the remaining distributable profit?

Answer and explanation

Correct answer: Rs 234000

Interest on drawings is added and other appropriation items are deducted from net profit. Rs 420000 plus Rs 18000 minus Rs 204000 equals Rs 234000.

Related tags

AppropriationRemaining ProfitExpertProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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