# Question 30 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 30 Chapter 2 – Unimax Class 12 Part 1

30. Y and Z are partners with opening capitals of Rs. 200000 and Rs. 150000 respectively and their profit sharing ratio is 3 : 2. Interest on Capital is agreed @ 10% per annum. Z is to be allowed an annual salary of Rs. 9600. The profits of the year 2021, before adjustment of interest on capital and before charging salary amounted to Rs. 75000. Y is entitled to a commission of 10% of the profits after deducting salary and interest on capital, but before charging such commission.
Prepare Profit and Loss Appropriation Account and Capital Accounts of Y & Z.

## The solution of Question 30 Chapter 2 – Unimax Class 12 Part 1:

Profit & Loss of Appropriation A/c For the year ended .

 Particulars Rs. Particulars Rs. To Interest on Capital By Net Profit 75000 – Y 20000 – Z 15000 35000 To Salary A/c 9600 To Commission A/c 3040 To Profit transferred to capital A/cs – Y (3/5) 16416 – Z (2/5) 10944 27360 75000 75000

Capital Accounts

 Particulars Varun Sahil Particulars Varun Sahil To Bal c/d 239456 185444 By Balance b/d 200000 150000 By Interest on capital A/c 20000 15000 By Commission A/c 3040 By Salary A/c 9600 By Profit & Loss Appropriation A/c (Profit) 16416 10944 239456 185544 239456 185544

Working Note :
Calculation of Commission

= (Rs. 75000 – Rs. 35000 – Rs. 9600) x 10%
= Rs. 30400 x 10%
= Rs. 3040

https://tutorstips.com/not-for-profit-organisations/

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)