Profit and Loss appropriation account
Interest on drawing =
Rohit = 70000 x 5/100 = 3500
Mohit = 60000 x 5/100 = 3000
Sohit = 10000 x 5/100 = 500
Note- months are not taken for interest on drawings as per annum is not written with the percentage.
For interest on capital calculation of opening capital
700000 x 10/100 = 70000
800000 x 10/100 = 80000