Arun and Arora were partners sharing profits and losses in the ratio 5:3. Their fixed capitals on 1.4.2016 were Arun Rs. 60,000; Arora Rs. 80,000. Interest on capital @ Rs. 12%. Interest on drawings @15% p.a. Profit for the year ended 31.3.2017 before all above adjustment was Rs. 12,600. Drawings Arun Rs. 2,000. Arora Rs. 4,000 during the year. Prepare profit and loss appropriation account.
