Question 40 Chapter 2 of +2- Part-

Question 40 Chapter 2 of +2-Part-1

40. (Journal Entries for Commission) Pass Journal Entries for the following
(a) Commission @5% payable to partner Mohan on profits before charging his commission. Profits are Rs.50,000.
(b) Commission @7% payable to partner Geeta on profits after charging his commission. Profits before commission are Rs.2,14,000.
(c) Fees Rs.2,500 p.m. is payable to partner Kanika.
Also, show relevant entries of transfers to Profit and Loss Appropriation a/c.

 

The solution of Question 40 Chapter 2 of +2 Part-1: – 

Journal
DateParticulars
L.FDebit Credit
a)Commission A/cDr. 2,500 
 To Mohan’s Capital A/c   2,500
 (Being commission due)    
      
b)Commission A/cDr. 14,000 
 To Geeta’s Capital A/c   14,000
 (Being commission due i.e. 7/107*2,14,000)    
      
c)Fees A/cDr. 30,000 
 To Kanika’s Capital A/c   30,000
 (Being fees payable)    
      
d)Profit and Loss Appropriation A/cDr. 46,500 
 To Commission A/c   16,500
 To Fees A/c   30,000
 (Being expenses transferred to Profit and loss appropriation account )    
      
d)Profit and Loss Appropriation A/cDr. 12,000 
 To General Reserve A/c   12,000
 (Being general reserve created)    
      
e)Commission A/cDr. 4,000 
 To B’s Capital A/c   4,000
 (Being commission payable to B)    
      

 

 

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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 40 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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