Question 37 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 37 Chapter 2 - Unimax Class 12 Part 1

37. The partnership agreement of Kanu and Shruti provides that :
(i) Profits will be shared equally.
(ii) Shruti will be allowed an annual salary of Rs. 4800.
(iii) Kanu will be allowed a commission equal to 10% of net profit after allowing Shruti’s salary but before any other adjustments.
(iv) 7% interest will be allowed on partners’ fixed capitals.
(v) 5% interest will charged on partners’ annual drawings without considering time period.
(vi) The fixed Capitals of Kanu and Shruti are Rs. 100000 and Rs. 80000 respectively. Their annual drawings were Rs. 16000 and Rs. 14000 respectively.
The net profit for year ending 31st March, 2021 before providing above adjustments amounted to Rs. 40000. Prepare firm’s Profit and Loss Appropriation Account.

The solution of Question 37 Chapter 2 - Unimax Class 12 Part 1:

Profit & Loss of Appropriation A/c For the year ended 31st March, 2021