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प्रश्न
Sibi and Manoj are partners in a firm. Sibi is to get a commission of 20% of net profit before charging any commission. Manoj is to get a commission of 20% on net profit after charging all commission. Net profit for the year ended 31st December 2018 before charging any commission was ₹ 60,000. Find the commission of Sibi and Manoj. Also, show the distribution of profit.
उत्तर
Calculation of Commission:
Commission to Sibi:
`"Net profit before Commission" xx ("% of commission")/(100 + "% of commission")`
= `60,000 xx 20/100`
= ₹ 12,000
Commission to Manoj:
`"Net profit after Sibi's Commission" xx ("% of commission")/(100 + "% of commission")`
= `48,000 xx 20/100`
= ₹ 8,000
| Distribution of profit | ||
| Particulars | ₹ | ₹ |
| Net profit | 60,000 | |
| Less: commission | ||
| Sibi | 12,000 | |
| Manoj | 8,000 | 20,000 |
| 40,000 | ||
| Sibi's share of profit | `40,000 xx 1/2` | 20,000 |
| Manoj's share of profit | `40,000 xx 1/2` | 20,000 |
Let assumed to be equal partners (1 : 1)
| Dr. | Profit and Loss Appropriation A/C | Cr. | ||
| Particulars | ₹ | ₹ | Particulars | ₹ |
| To Sibi's commission | 12,000 | By Net profit b/d | 60,000 | |
| To Manoj's commission | 8,000 | |||
| To Profit transferred | ||||
| Sibi's Capital A/c | 20,000 | |||
| Manoj's Capital A/c | 20,000 | 4,000 | ||
| 60,000 | 60,000 | |||
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संबंधित प्रश्न
Which of the following is shown in the Profit and loss appropriation account?
Why is the Profit and loss appropriation account prepared?
Anand and Narayanan are partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1st January 2018, their capitals were ₹ 50,000 and ₹ 30,000 respectively. The partnership deed specifies the following:
- Interest on capital is to be allowed at 6% per annum.
- Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800 respectively.
- Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800 respectively.
Give necessary journal entries and prepare profit and loss appropriation account as on 31st December 2018. Assume that the capitals are fluctuating.
Dinesh and Sugumar entered into a partnership agreement on 1st January 2018, Dinesh contributing ₹ 1,50,000 and Sugumar ₹ 1,20,000 as capital. The agreement provided that:
- Profits and losses to be shared in the ratio 2 : 1 as between Dinesh and Sugumar.
- Partners to be entitled to interest on capital @ 4% p.a.
- Interest on drawings to be charged Dinesh: ₹ 3,600 and Sugumar: ₹ 2,200
- Dinesh to receive a salary of ₹ 60,000 for the year, and
- Sugumar to receive a commission of ₹ 80,000
During the year ended on 31st December 2018, the firm made a profit of ₹ 2,20,000 before adjustment of interest, salary and commission. Prepare the Profit and loss appropriation account.
Antony and Ranjith started a business on 1st April 2018 with capitals of ₹ 4,00,000 and ₹ 3,00,000 respectively. According to the Partnership Deed, Antony is to get the salary of ₹ 90,000 per annum, Ranjith is to get 25% commission on profit after allowing salary to Antony and interest on capital @ 5% p.a. but after charging such commission. The profit-sharing ratio between the two partners is 1 : 1. During the year, the firm earned a profit of ₹ 3,65,000.
Prepare profit and loss appropriation account. The firm closes its accounts on 31st March every year.
Anand and Narayanan are partners in a firm sharing profits and losses in the ratio of 5:3. On 1st January 2018, their capital was ₹ 50,000 and ₹ 30,000 respectively. The partnership deed specifies the following:
- Interest on capital is to be allowed at 6% per annum.
- Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800 respectively.
- The net profit of the firm before considering interest on capital and interest on drawings amounted to ₹ 35,000.
Give necessary journal entries and prepare profit and loss appropriation accounts as on 31st December 2018. Assume that the capitals are fluctuating.
