Question 38 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 38 Chapter 2 of +2- Part-

Question 38 Chapter 2 of +2-Part-1

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

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

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2 Book 1 min - Question 38 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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