P and Q are the partners sharing profit and losses in the ratio 3:2. On 1st July 2020, P granted loan of Rs 1,00,000 and On 1st October 2020, Q granted a loan of Rs 2,00,000 to the firm. On 31 march 2021, the net profit of the firm was 50,000 before any interest on loan to partners. Profit transferred to P & L Appropriation A/C will be:

₹39,500

The correct answer is option 2- ₹39,500.

"Interest on loan"
P = 1,00,000 * 6/100 * 9/12
   = 4,500

Q = 2,00,000 * 6/100 * 6/12
   = 6,000

Total interest = 4,500 + 6,000
                      = 10,500

Net profit before any interest = 50,000

Profit transferred to P & L App A/c = Net profit before interest - Interest on partners
Net Profit transferred to P & L App. A/c =  50,000 - 10,500
                                                              = 39,500