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A, B, C are partner in a firm sharing profit and loses 2:2:1.C is allowed a salary of 4000 per annum and B is allowed commission of 3% on sales which is 200000.A is also entitled to get 10% commission on profit after charging salary to partners and all commission. During the accounting year, firm earned profit of 16 % on sales. Prepare a profit and loss appropriation account Class 12?
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A, B, C are partner in a firm sharing profit and loses 2:2:1.C is allo...
Profit and Loss Appropriation Account of A, B, C Firm

Partners Ratio: 2:2:1

Sales: 200000

Salary of C: 4000

Commission of B: 3% on Sales

Commission of A: 10% on Profit after charging Salary and Commission

Profit Earned: 16% on Sales

Heading 1: Calculation of Profit before charging Salary and Commission

Sales: 200000

Profit Earned: 16% on Sales

Profit before charging Salary and Commission: 32000

Heading 2: Calculation of Salary and Commission

Salary of C: 4000

Commission of B: 3% on Sales = 6000

Total Salary and Commission: 10000

Heading 3: Calculation of Profit after charging Salary and Commission

Profit before charging Salary and Commission: 32000

Less: Salary and Commission: 10000

Profit after charging Salary and Commission: 22000

Heading 4: Allocation of Profit among Partners

Ratio of A, B, C: 2:2:1

Share of A: 10/13 x 22000 = 16923.08

Share of B: 2/13 x 22000 = 3384.62 + 6000 = 9384.62

Share of C: 1/13 x 22000 = 1692.31 + 4000 = 5692.31

Heading 5: Summary of Profit and Loss Appropriation Account

Profit before charging Salary and Commission: 32000

Less: Salary and Commission: 10000

Profit after charging Salary and Commission: 22000

Allocation of Profit among Partners:

A: 16923.08

B: 9384.62

C: 5692.31

Total: 32000

Conclusion:

The Profit and Loss Appropriation Account shows the allocation of profit among the partners of the A, B, C firm. The calculation of profit before charging salary and commission, salary and commission, and profit after charging salary and commission is important to determine the share of each partner. The allocation of profit is based on the ratio of the partners, and the salary and commission are deducted from the profit before allocating it among the partners.
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A, B, C are partner in a firm sharing profit and loses 2:2:1.C is allowed a salary of 4000 per annum and B is allowed commission of 3% on sales which is 200000.A is also entitled to get 10% commission on profit after charging salary to partners and all commission. During the accounting year, firm earned profit of 16 % on sales. Prepare a profit and loss appropriation account Class 12?
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A, B, C are partner in a firm sharing profit and loses 2:2:1.C is allowed a salary of 4000 per annum and B is allowed commission of 3% on sales which is 200000.A is also entitled to get 10% commission on profit after charging salary to partners and all commission. During the accounting year, firm earned profit of 16 % on sales. Prepare a profit and loss appropriation account Class 12? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A, B, C are partner in a firm sharing profit and loses 2:2:1.C is allowed a salary of 4000 per annum and B is allowed commission of 3% on sales which is 200000.A is also entitled to get 10% commission on profit after charging salary to partners and all commission. During the accounting year, firm earned profit of 16 % on sales. Prepare a profit and loss appropriation account Class 12? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A, B, C are partner in a firm sharing profit and loses 2:2:1.C is allowed a salary of 4000 per annum and B is allowed commission of 3% on sales which is 200000.A is also entitled to get 10% commission on profit after charging salary to partners and all commission. During the accounting year, firm earned profit of 16 % on sales. Prepare a profit and loss appropriation account Class 12?.
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