P**articulars** | **Rs.** | **particulars** | **Rs.** |

To interest on mahesh's loan | 150 | By net profit b/d | 15,200 |

To profit transferred to: Mahesh's capital A/C 7,525 Ramesh's 7,525 | 15,050 | | |

| 15,200 | | 15,200 |

**Working Note**

1, Calculation of interest on mahesh loan

Amount of loan given by mahesh =Rs.10.000

Period (from jan 01 to march 31,2016 ) =3 months

2. Calculation of interest on capital

**No,** interest on capital will be allowed to the parthers

**Note:** There is no partnership deed between mahesh and ramesh therefore as per partnership act

a. interest on loan will be allowed at 6% p.a

b.No interest on parters capital will be allowed and

c.profit after interest on mahesh loand will be distributed equally between mahesh and ramesh