Question

x and y are partners in a firm without partnership deed. The firm earned large profits from a transaction die to efforts of x. x wants ₹10,000 for the efforts.Is x entitled to it and why.​

Answer 1

Answer:

PROFIT AND LOSS APPROPRIATION A/C

(for the year ended 31st March, 2018)

Dr. Cr.

Particulars Amount Particulars Amount

To Partner's Salary a/c

- X (10000*12)

- Y

120000

25000 By Net Profit a/c 420000

To Partner's Commission a/c

- X

- Y

27500

22500

To Profit transferred to:

- X's Capital a/c

- Y's Capital a/c

112500

112500

420000 420000

Working Note:

Calculation of partner's commission:

Commission to X= Profit after partner's salary but before charging such commission

Profit after salary= 420000-145000

= 275000

X's commission= 275000* 10/100

= 27500

Commission to Y= Profit after partner's salary and commission

Profit after salary and commission= 420000-145000-27500

= 247500

Y's commission= 247500 * 10/110

= 22500