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
AmountParticulars
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)40,0001,00,000   
  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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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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