Question 40 Chapter 2 of Class 12 Part – 1 Usha Publication

Question 40 Chapter 2 of Class 12 Part – 1 Usha Publication

40. (Journal Entries for Commission) Pass Journal Entries for the following
(a) Commission @5% payable to partner Mohan on profits before charging his commission. Profits are Rs.50,000.
(b) Commission @7% payable to partner Geeta on profits after charging his commission. Profits before commission are Rs.2,14,000.
(c) Fees Rs.2,500 p.m. is payable to partner Kanika.
Also, show relevant entries of transfers to Profit and Loss Appropriation a/c.

The solution of Question 40 Chapter 2 of Class 12 Part – 1 Usha Publication: -

We are providing a solution of Question 40 Chapter 2 of Class 12 Part - 1 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:

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2. Check out the Solution of this question in Article Format: -

Journal

Date	Particulars		L.F	Debit	Credit
a)	Commission A/c	Dr.		2,500
	To Mohan’s Capital A/c				2,500
	(Being commission due)
b)	Commission A/c	Dr.		14,000
	To Geeta’s Capital A/c				14,000
	(Being commission due i.e. 7/107*2,14,000)
c)	Fees A/c	Dr.		30,000
	To Kanika’s Capital A/c				30,000
	(Being fees payable)
d)	Profit and Loss Appropriation A/c	Dr.		46,500
	To Commission A/c				16,500
	To Fees A/c				30,000
	(Being expenses transferred to Profit and loss appropriation account )