Yadu, Vidu and Radhu were partners in a firm sharing profits in the ratio of 4:3:3. Their fixed capitals on 1st April were Rs. 9,00,000, Rs. 5,00,000 and Rs. 4,00,000 respectively. On 1st November, Yadu gave a loan of Rs. 80,000 to the firm, as per the partnership agreement.
a) The partners were entitled to an interest on capital @6% p.a.
b) Interest on partner’s drawings was to be charged @8% p.a.
The firm earned profit of Rs. 2,53,000 (after interest on Yadu’s loan) during the year. Partners drawings for the year amounted to: Yadu – Rs. 80,000, Vidu – Rs. 70,000 and Radhu – Rs. 50,000. Prepare Profit & Loss Appropriation account for the year ending 31st March.