A and b are partners sharing profits and losses in ratio of 3:1 on 1st April 2019,their capitals were a ₹50000 and b ₹30000.during the year ended 31march,2020,the firm earned a net profit of 50000.tue termsof partnership are:
a) intrest on capital is to allowed@6%.p.a.
b)a will get a salary of₹500 per month.
d)B will get commission of 5%on profits after deduction of all expenses including such commission.
Partners drawings for the year were A ₹8000 and B ₹6000 for the year was ₹300000 prepare. Profit and loss account and partners capital account
Answers
- Interest on capital is to allowed 6% p.a.
A's capital = 50,000
B's capital = 30,000
∴ Interest on A's capital = =3,000
∴ Interest on B's capital = =1,800
- A will get a commission of 2% on turnover.
- B will get commission of 5% on profits after deduction of all expenses.
Commission to A =
=6,000
Profits after all expense = 50,000 - (3,000+1,800) - 6,000 - 6,000
= RS. 33,200
Commission to B = Profit after all expenses * {R/(100+R)} [R=Rate]
= 33,200 * {5/(100+5)}
= 33,200 * {5/(105)}
=1,581
∴ 6,000 + 1,581 = 7,581
Share of profit of each partner available for distribution
=50,000 - 4,800 - 6,000 - 7,581
= RS. 31,619
Ratio = 3:1
∴ A's profits share = 31,617 * (3/4) = 23,714
∴ B's profits share = 31,617 * (1/4) = 7,905
Answer:
Explanation:
Profit & loss Account
To Int. on capital By Net profit 50000
A 3000
B 1800 4800
To commision
A 6000
B 6000 12000
To commision B 1581
To Profits
A's Account 23714
B's Account 7905
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50000 50000
PARTNERS CAPITAL ACCOUNT
PARTICULARS A B PARTICULARS A B
To drawings 8000 6000 By bal b/d 50000 30000
To bal c/d 74714 35286 By Int on cap 3000 1800
By commission 6000 1581
By p &l A/c 23714 7905
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82714 41286 82714 41286