0.19. P and Q are partners sharing profits and losses in the ratio of 60:40. On 1st
April, 2014, their capitals were: P- 5,00,000 and Q - 3,00,000. During the year
ended 31st March, 2015, they earned a profit of 7,60,000. The terms of partnership
are :
(1) Interest on the capital is to be charged @ 8% p.a.
(ii) P will get commisson @ 3% on turnover.
(iii) Q will get a salary of 35,000 per month.
(iv) Q will get commission of 5% on profits after deduction of interest, salary and
commission (including his own commission).
(v) P is entitled to a rent of 20,000 per month for the use of his premises by the
firm.
Partner's drawings for the year were :P - 340,000 and Q - 330,000. Turnover
for the year was 20,00,000. After considering the above factors, you are required to
prepare the Profit and loss Appropriation Account and the Capital Accounts of the
Partners
[Ans. Share of Profit P 1,92,000 and Q 31,28,000. Balance of Capital A/cs P
87,52,000 and Q 4,98,000.]
Hints: (1) Net Profit Credited to P & L Appropriation A/c : 37,60,000 - Rent 32,40,000 =
5,20,000
(i) O's Commission as of 73,36,000
(it) Rent will be credited to Rent Payable Account.
105
dl
h eti
f their monitolo
Answers
deduction of interest, salary and
commission (including his own commission).
(v) P is entitled to a rent of 20,000 per month for the use of his premises by the
firm.
Partner's drawings for the year were :P - 340,000 and Q - 330,000. Turnover
for the year was 20,00,000. After considering the above factors, you are required to
prepare the Profit and loss Appropriation Account and the Capital Accounts of the
Partners
[Ans. Share of Profit P 1,92,000 and Q 31,28,000. Balance of Capital A/cs P
87,52,000 and Q 4,98,000.]
Hints: (1) Net Profit Credited to P & L Appropriation A/c : 37,60,000 - Rent 32,40,000 =
5,20,000
(i) O's Commission as of 73,36,000
(it) Rent will be credited to Rent Payable Account.
105
dl
h eti
f their monitolo
0.19. P and Q are partners sharing profits and losses in the ratio of 60:40. On 1st
April, 2014, their capitals were: P- 5,00,000 and Q - 3,00,000. During the year
ended 31st March, 2015, they earned a profit of 7,60,000. The terms of partnership
are :
(1) Interest on the capital is to be charged @ 8% p.a.
(ii) P will get commisson @ 3% on turnover.
(iii) Q will get a salary of 35,000 per month.
(iv) Q will get commission of 5% on profits after deduction of interest, salary and
commission (including his own commission).
(v) P is entitled to a rent of 20,000 per month for the use of his premises by the
firm.
Partner's drawings for the year were :P - 340,000 and Q - 330,000. Turnover
for the year was 20,00,000. After considering the above factors, you are required to
prepare the Profit and loss Appropriation Account and the Capital Accounts of the
Partners
[Ans. Share of Profit P 1,92,000 and Q 31,28,000. Balance of Capital A/cs P
87,52,000 and Q 4,98,000.]
Hints: (1) Net Profit Credited to P & L Appropriation A/c : 37,60,000 - Rent 32,40,000 =
5,20,000
(i) O's Commission as of 73,36,000
(it) Rent will be credited to Rent Payable Account.
105
dl
h eti
f their monitolo