Question

Tulsi and kabir are partner sharing profit in proportion of 3: 2 with capital of 8 and 6 respictively. int. on capital is agreed at 6% p. a. tulsi is to be allowed a salary of 6000 p. m. for the yrs ended 31dt march 2014, the profit prior to calculation of int. on capital but after charging tulsi salary amounts to 228000. manager is to be allowed a commissions of 10% of the profit .prepare an account showing the allocation of profit.

Answer 1

Answer:

1. first of all we prepare profit/loss account for calculation of managers commission.Manager's commission is 30‚000 and net profit is 2,70,000

explanation

2. prepare profit/loss appropriation account net profit is calculated.2,70,000 and deducted debit side of p/l app. account 1.we deducted int. on capital is 0.48 for tulsi and Kabir is 0.36=total of it comes 0.84

2. We deducted salary of tulsi 72,000

and answer comes=262,799.16 and distribute in ratio 3:2 so tulshi profit is 157,679.496 and kabir profit is 105,119.664

question completed