Question

Q. 115, X, Y and Z were in partnership. X and Y sharing profits in the proportion
of 2 : 1and Z receiving a salary of 1,790 per month plus 5% of the profit after
charging his salary and commission or 1/5th of the profit of the firm whichever is more.
Any excess of the latter over the former received by Z is, under the partnership deed,
to be borne by X. The profit for the year ended 31st March, 2018 amounted to
1,28,520 after charging Z's salary.
Prepare the Profit and Loss Appropriation Account showing the division of the
profit of the year.
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Answer 1

Explanation:

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Answer 2

Answer:

The excess amount of 21480 will be subtracted from A and B.

Concept:

Mathematicians use the profit and loss formula to calculate market prices for goods and to assess how lucrative a company is. There is a selling price and a cost price for every goods. We can determine the profit made or loss suffered for a certain product based on the values of these prices.

Given:

X and Y shared in the profits = 2:1

Z received salary per month = 1790 at 5%

Z receiving his salary after commission =$\frac{1}{5^{th} }$  of the profit

Amounted to Z salary after charging = 1,28,520

To find:

Profit and Loss Appropriation Account showing the division of the

profit of the year.

Calculation:

Receipt account for profit and loss For the year ended, or March 31, 2018.

Let Z's salary = 21480

Z's commission = 25704

Z will receive = 128520 - (21480 + 25704)

                      = 81336

Z as a partner will receive = 47184

$\frac{1}{5^{th} }$ of 128520 = 25704

As stated in the question, the excess amount of 21480 will be subtracted from A and B.

So, the excess amount of 21480 will be subtracted from A and B.

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