Kajal and Koyal are partners. Their profit sharing ratio is equal. Kishmish was a manager who received the salary of ₹4,000 p.m. She also has to be given a commission of 5% on Net Profits after charging such salary and commission. Profit of the firm is ₹6,78,000 before charging Kishmish’s salary. Find out the total remuneration of Kishmish. (1)
(a) ₹78,000 (b) ₹30,000 (c) ₹76,000 (d) ₹88,000
Answers
Answer:
PROFIT AND LOSS APPROPRIATION A/C
(for the year ended 31st March, 2018)
Dr. Cr.
Particulars Amount Particulars Amount
To Interest on capital a/c
- Sajal
- Kajal
2500
2000 By Profit and loss a/c 68460
To Reserve a/c
(68460+300+240-2500-2000) *10/100 6450 By interest on drawings a/c
- Sajal
- Kajal
300
240
To Profit transferred to:
- Sajal's Capital a/c
- Kajal's Capital a/c
38700
19350
69000 69000
Note: interest on loan has already been deducted before to give the net profit.
PARTNER'S CAPITAL A/C
Dr. Cr.
Particulars Sajal Kajal Particulars Sajal Kajal
To Drawings a/c 10000 8000 By Balance b/d 50000 40000
To interest on drawings a/c 300 240 By interest on capital a/c 2500 2000
To Balance c/d 80900 53110 By Profit and loss appropriation a/c 38700 19350
91200 61350