Question 23 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 23 Chapter 2 of +2-A

Question 23 Chapter 2 of +2-A

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)

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

2 Book 1 min - Question 23 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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