Question

Amar bhanu and charu are partners in a firm. Amar and bhanu are to get annual salary of 120000 each as they are fully involved in the business. Net profit for the year is 480000 determine the share of profit to be credited to each partner? URGENT ANSWER IS REQUIRED...​

Answer 1

Answer:

Partnership Final Accounts requires that before rhe profit is shared, an appropriation account will be created in the following manner.

Net profit                                 XXX

Add interest on drawings      XXX

Less interest on capital          XXX

Less salaries to partners        XXX

Then the balance is shared according to the ratio agreed.

Now in this case there are only salaries to partners, therefore, it shall be

Net profit                                        480000

less salaries (120000+120000)     240000

                                                        240000

Now since there is no agreement on how to share the profits, they will share equally i.e Bhanu will be credited with 120000 and Charu will be credited with 120000

Explanation:

Well explained above

Answer 2

Answer:

Explanation:

Salary to Amar =120000

Salary to Bhanu =120000

Total salary. =240000

After providing salary of 240000, remaining profit is 240000 【480000 (net profit)-240000 (total salary)】will be shared among partners equally since no ratio isn't given.

Thus

Share of profit for each partners

=240000×1/3

=80000