Question - 02


A and B Commence of partnership business on 1st April, 2016 with capital of Rs. 50,000 and Rs. 40,000 respetively According to the partnership deed B is entitled to salary of Rs. 1,000 per month and interest is to be allowed on capital of 6% per annum the remaining profit are to be distributed between the ending on 31st March, 2017 the firm earned profit of Rs. 49,600 before charging salary to B and interest on capitals. 

Give journal entries relating to division of profit and prepare profit and loss approprieation account.

NOTE : Purchase Novbodh book for extra information.