Question 21 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 21 Chapter 2 – Unimax Class 12 Part 1

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The solution of Question 21 Chapter 2 – Unimax Class 12 Part 1:

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

21. (a) A and B are partners in a firm. A is entitled to a salary of Rs. 3000 per month together with a commission of 10% of Net Profits before charging any commission. Net profit before charging any salary and commission for the year 2021 was Rs. 96000. Show distribution of profits.
(b) Also show distribution of profits if A is if A is entitled to a salary of Rs. 2500 per month together with a commission of 10% of net profit after charging such commission in above case.

The solution of Question 21 Chapter 2 – Unimax Class 12 Part 1:

Profit & Loss Account For the year ended ….

Particulars		Rs.	Particulars	Rs.
To A’s Capital – Salary (3000 x 12)		36000	By Net Profit	96000
To Commission (60000 x 10%)		6000
To Net Profit transferred to Capital A/c
– A	27000
– B	27000	54000
		96000		96000

Profit & Loss Account For the year ended……

Particulars		Rs.	Particulars	Rs.
To A’s Capital (Salary) (2500 x 12)		30000	By Net Profit	96000
To Commission (66000 x 10/110)		6000
To Net Profit transferred to capital A/c		60000
– A	30000
– B	30000
		96000		96000