Question 37 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 37 Chapter 2 of +2- Part-

Question 37 Chapter 2 of +2-Part-1

37. (Treatment of salary and Commission) Pass Journal Entries for the following transactions and the relevant transfer entries to profit and loss appropriation account :
(a) Salary Rs.3,000 p.m. payable to partner X and Rs.4,000 p.m. to Y.
(b) Interest on Capital is allowed @10% p.a. on capital of Rs.1,00,000 and Rs.70,000 to X and Y respectively.
(c) Commission 5% is payable to Z on the profit of Rs.40,000.

 

The solution of Question 37 Chapter 2 of +2 Part-1: – 

Journal
Date Particulars
L.F Debit Credit
a) Partners’ Salary A/c Dr.   84,000  
  To X’s Capital A/c       36,000
  To Y’s Capital A/c       48,000
  (Being salary due to partners)        
           
b) Interest on capital A/c Dr.   17,000  
  To X’s Capital A/c       10,000
  To Y’s Capital A/c       7,000
  (Being interest on capital allowed)        
           
c) Commission A/c Dr.   2,000  
  To Z’s Capital A/c       2,000
  (Being interest on Capital allowed)        
           
  Profit and Loss A/c Dr.   1,03,000  
  To Partners’ Salary A/c       84,000
  To Interest on capital A/c       17,000
  To Commission A/c       2,000
  (Being expenses transferred to Profit and loss account )        
           

 

 

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

 

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2 Book 1 min - Question 37 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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