Amal ,kamal, and Bimal share an account of Rs.660 in the ratio 3:4:5.what is the share of Bimal?
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ACCOUNTANCY
Amal, Bimal and Kamal are three partners. On 1st April, 2017, their Capitals stood as: Amal Rs. 40,000, Bimal Rs. 30,000 and Kamal Rs. 25,000. It was decided that:
(a) they would receive interest on Capital @ 5% p.a.,
(b) Amal would get a salary of Rs. 250 per month,
(c) Bimal would receive commission @ 4% on net profit after deducting commission, interest on capital and salary, and
(d) After deducting all of these 10% of the profit should be transferred to the General Reserve.
Before the above items were taken into account, the profit for the year ended 31st March, 2018 was Rs. 33,360. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the Partners.
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ANSWER
PROFIT AND LOSS APPROPRIATION ACCOUNT
Particulars Amount Particulars Amount
To interest on Capital
Amal- 40000*5%=2000
Bimal=30000*5%=1500
Kamal=25000*5%=1250 4750 By net profit 33360
To salary to Amal
250*12 3000
To commission (Notes) 985
To general reserve (Notes) 2462
To profit T/f to
Amal's capital A/c = 7388
Bimal's capital A/c = 7387
Kamal's capital A/c= 7388 22163
Total 33360 Total 33360
Notes:- Calculation of commission to Bimal=33360-4750-3000 = 25610
= 25610*4/104 = 985.
Transfer to general reserve = 33360-4750-3000-985 = 24625*10%=2462