Question No 36 Chapter No 18

Question No 36 Chapter No 18

Mutual indebtedness

36.The following balances have been extracted from the books of Miss Mehak as on 31st March 2018

Ledger Account(Dr. Rs)(Cr. Rs)
Trading A/c Balance80,000
Office expenses6,000
Selling expenses8,000

Adjustments

  1. manager’s commission is 10% of net profit before charring such commission
  2. Manager’s commission is 10% of net profit after charging such commission
    Calculate the amount of the manager’s commission under both the alternative and also show how to commission payable will be shown in the balance sheet

The solution of Question No 36 Chapter No 18:-

Calculation of net profit before the commission

Gross Profit=80,000
Less: office expenses=6,000
Less: selling expenses=8,000
Net profit before commission=66,000

 

(i) manager’s commission is 10% of net profit before charring such commission

     
 =10X66,0000
 100
 =6,600  
Balance Sheet
Labilities
AmountAssets
Amount
Manager commission due 6,600   
      
      

(ii) manager’s commission is 10% of net profit after charring such commission

 =10X66,0000
 110
 =6,000  

 

Balance Sheet
Labilities
AmountAssets
Amount
Manager commission due 6,000   
      
      

 

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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