Question 23 Chapter 2 of +2-A
Table of Contents
23. Amar, Bhanu, and Charu are partners in a firm. Amar and Bhanu are to get annual salary of 1,20,000 p.a. each as they are fully involved in the business. Net profit for the year is
4,80,000. Determine the share of profit to be credited to each partner.
The solution of Question 23 Chapter 2 of +2-A:
| Profit and Loss Appropriation Account A/c for the year ended 31st March 2019 |
||||||
| Particulars |
Amount | Particulars |
Amount | |||
| To Salary to partners | By Profit and Loss Adjustment A/c | 4,80,000 | ||||
| Amar | 1,20,000 | |||||
| Bhanu | 1,20,000 | 2,40,000 | ||||
| To Profit Transferred to *1 | ||||||
| Amar’s Current A/c | 80,000 | |||||
| Bhanu’s Current A/c | 80,000 | |||||
| Charu’s Current A/c | 80,000 | 2,40,000 | ||||
| 4,80,000 | 4,80,000 | |||||
Working Note:
*1: -Calculation of share of profit of Amar, Bhanu, and Charu
Profit Sharing Ratio = 1: 1 : 1
Net Profit after interest= 2,40,000
= 2,40,000 X 1/3
Profit share = 80,000/- each
Jay’s Capital = 80,000
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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