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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Neeraj and Surya are partners sharing profits and losses in the ratio of 2 : 1. Their capitals are ₹4,00,000 and ₹2,00,000 respectively. Neeraj is entitled to interest on capital @ 12% p.a. and Surya is entitled to a salary of ₹6,000 per month. Profit before providing for interest on capital and partner’s salary for the year ended 31st March, 2025 was ₹50,000. Show the distribution of profits.
Total appropriations claimed: Interest on Neeraj’s capital = ₹4,00,000 × 12% = ₹48,000; Surya’s salary = ₹6,000 × 12 = ₹72,000; Total = ₹1,20,000.
As the profit (₹50,000) is less than the total appropriations (₹1,20,000), the profit is distributed in the ratio of appropriations (48,000 : 72,000 = 2 : 3):
Neeraj = ₹50,000 × 2/5 = ₹20,000; Surya = ₹50,000 × 3/5 = ₹30,000.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 1 Q.54 - Accounting for Partnership Firm Fundamentals", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Accounting for Partnership Firm – Fundamentals.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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