Question 38 Chapter 2 of +2-Part-1
Table of Contents
38. (Treatment of salary & commission) Fat and Thin are partners in a firm 3:2 ratio. Fat gets a salary of Rs.5,000 p.m. and 10% commission on net profit before charging any commission. Thin is to get 8% commission after charging all commission and salary. Net profit before charging salary and commission was Rs.1,80,000.
Show the distribution of profits.
The solution of Question 38 Chapter 2 of +2 Part-1: –
| Profit and Loss Account A/c |
|||||
| Particulars |
Amount | Particulars |
Amount | ||
| To Commission: | By Profit & Loss a/c (profit for the year) | 1,80,000 | |||
| – Fat @10% on (1,80,000-60,000) | 12,000 | ||||
| – Thin @8% on 1,08,000 | |||||
| (i.e. (1,80,000-60,000-12,000*8/108) | 8,000 | ||||
| To Salary – Fat | 60,000 | ||||
| To Net profit transferred to: | |||||
| -Fat (3/5) | 60,000 | ||||
| -Thin (2/5) | 40,000 | 1,00,000 | |||
| 1,80,000 | 1,80,000 | ||||
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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