Aand B started a business by investing Rs.50,000 and Rs.80,000 respectively. B was
a sleeping partner. Ahad to receive 20% of the annual profit for his work and the
balance was to be divided between them in proportion to their capitals. If the total
amount received by Awas Rs.33,000 find the total annual profit? (In Rs.)
Answers
Answer:
Profit And Loss Account
Particulars AmountParticulars AmountTo Manager;s
commission
(15000*5/100) 750 By profit before B's Salary
(12500+2500) 15000To Net profit T/f to
P/L Appropriation
Account 14250 Total 15000 Total 15000 Profit And Loss Appropriation Account Particulars Amount ParticularsAmount 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/d50000 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 Total 57170 37080