2.7
A & B are partners sharing profits in the ratio of 3:2 with capital of
Rs.800,000 and 600,000 respectively. Interest on capital is agred at
6% p.a. A is allowed a salary of Rs.6000 per month. For the year
ended 31 March, 2018, the profit prior to calculation as interest on
capital but after charging A's salary amounted to Rs.228000.
Manager is to be allowed a commission of 10% of the profit.
Answers
Answer:
ANSWER
Profit And Loss Account
Particulars Amount Particulars Amount
To Manager;s
commission
(15000*5/100) 750 By profit before B's Salary
(12500+2500) 15000
To Net profit T/f to
P/L Appropriation
Account 14250
Total 15000 Total 15000
Profit And Loss Appropriation Account
Particulars Amount Particulars Amount
To Interest on capital
A = 50000*6% = 3000
B=30000*6% = 1800 4800 By net profit 14250
B's Salary 2500
To profit T/f to
A's Capital A/c = 4170
B's Capital A/c = 2780 6950
Total 14250 Total 14250
Partners capital account
Particulars A B Particulars A B
By bal b/d 50000 30000
By Int on capital 3000 1800
salary 2500
To bal c/d 57170 37080 By P/L Appr A/c 4170 2780
Total 57170 , 37080