Ajay presents the following Profit & Loss appropriate account to his partner Vijay
Profit & Loss appropriate For the year ended 31 st March 2006
Dr. Cr.
Particulars Amount Particulars Amount
To Salary to Ajay 20,000 By Profit for the year 54,400
To Salary to Vijay 17,000
To interest on capital @ 6%
Ajay on Rs.1,00,000=6,000
Vijay on Rs. 40,000=2,400 8,400
To interest on Ajay’s Loan 2,000
To profit transferred to
5/7 th Ajay’s capital a/c 5000
2/7 th Vijay’s capital a/c 2000 7,000
54,400 54,400
There is no partnership deed. Vijay feels that he has not treated fairly. Point out
Ajay has contravened the provisions of law and draw out Profit and Loss
Appropriation account on proper lines.
