# Question 91 Chapter 2 of Class 12 Part – 1 VK Publication

Question 91 Chapter 2 of Class 12 Part - 1 VK Publication

Question 91 Chapter 2 of Class 12 Part – 1

91. Ramesh and Somesh are in partnership sharing profits and losses in 3:2. They decided to admit their manager, Kamlesh as a partner with effect from 1st April 2016, providing him share of profits. As a manager, Kamlesh was obtaining a salary of Rs. 54,000 and a commission of 10% of net profits after charging such salary and commission. As per partnership dee any excess amount entitled to Kamlesh as a partner over the amount which would have been due to him if he continued to be the manager, would have to be borne by Ramesh and Somesh in their profit sharing ratio. Profit for the year ended 31st March, 2017 amounts to Rs. 4,50,000. Show the distribution of profit among partners for the year ended 31st Marc 2017.

## The solution of Question 91 Chapter 2 of Class 12 Part – 1: –

Profit and Loss Appreciation Account

For the year ended 31st March 2017

 Particulars Advertisement-X Advertisement-Y Amount Particular Amount To Profit Transferred to: By Profit And Loss A/C 4,50,000 Ramesh’s Capital A/C 1,80,000 (Net profit) Somesh’s Capital A/C 1,20,000 Kamlesh’s Capital A/C 1,50,000 4,50,000 4,50,000

Working Note:

 Profit before Kamlesh’s salary and commission 4,50,000 Less: Kamlesh’s salary 54,000 3,96,000 Less: Kamlesh’s commission((3,96,000×10)/110) 36,000 Net divisible profit 3,60,000

Kamlesh’s total remuneration as a manager 54,000+ 36,000 = Rs. 90,000
Ramesh’s share in profit = 5,60,000×3/5 = Rs. 2,16,000
Somesh’s share in profit= 3,60,000 ×2/5= Rs. 1,44,000
As Kamlesh has joined as a partner, he will get share in profit of Rs. 4,50,000,i.e., Rs. 1,50,000
Therefore, deficiency (difference) of 260,000 (1,50,000-90,000) will be borne by Ramesh and Somesh in the ratio of 3:2
Deficiency borne by Ramesh 60,000 ×3/5= Rs. 86,000.
Deficiency borne by Somesh = 60,000×2/5 = Rs.24,000
Thus, final share in profit,
for Ramesh: 2,16,000-36,000= Rs. 1,80,000
for Somesh: 1,44,000-24,000 = Rs. 1,20,000
for Kamlesh: Rs.1,50,000

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## 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