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sharma and verma are partner sharing profit in thre ratoi 4:1 in a firm their capital on 1st april 2018 were sharma 500000 and varma 100000 the partner deed provied that shrma will get a commision 10% of the nret propfit after allowing a salary of 5000 pre month to verma the profit of the firm for the year ended 31 st marcg 2019 wasv 280000 prepare profit and loss appropriation account of shrama and varma ( paryt 2 )
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sharma and verma are partner sharing profit in thre ratoi 4:1 in a fir...
Profit and Loss Appropriation Account of Sharma and Verma for the year ended 31st March 2019
Particulars Amount (Rs.)
Net Profit as per Profit and Loss Account 280,000
Salary to Verma (5,000 x 12) (60,000)
Net Profit available for appropriation 220,000
Sharma's Commission (10% of net profit) 22,000
Balance Profit carried to next year's account 198,000
Explanation:
Introduction: The given problem is related to the partnership firm of Sharma and Verma. The task is to prepare the Profit and Loss Appropriation Account for the year ended 31st March 2019.
Step-by-Step Solution:
- Calculation of Profit: The first step is to calculate the net profit of the firm for the year ended 31st March 2019. The given profit is 280,000.
- Salary to Verma: As per the partnership deed, Verma is entitled to a salary of 5,000 per month. Therefore, the salary for the year would be 5,000 x 12 = 60,000. This amount is deducted from the net profit to arrive at the net profit available for appropriation.
- Net Profit Available for Appropriation: The net profit available for appropriation is calculated by deducting the salary of Verma from the net profit. Therefore, 280,000 - 60,000 = 220,000.
- Commission to Sharma: As per the partnership deed, Sharma is entitled to a commission of 10% of the net profit after deducting the salary of Verma. Therefore, Sharma's commission would be 10% of 220,000, which is 22,000.
- Balance Profit: The balance profit is calculated by deducting the commission of Sharma from the net profit available for appropriation. Therefore, 220,000 - 22,000 = 198,000.
Conclusion:
The Profit and Loss Appropriation Account of Sharma and Verma for the year ended 31st March 2019 shows that the net profit available for appropriation is 220,000. After deducting Sharma's commission of 22,000, the balance profit carried to next year's account is 198,000.
Particulars Amount (Rs.)
Net Profit as per Profit and Loss Account 280,000
Salary to Verma (5,000 x 12) (60,000)
Net Profit available for appropriation 220,000
Sharma's Commission (10% of net profit) 22,000
Balance Profit carried to next year's account 198,000
Explanation:
Introduction: The given problem is related to the partnership firm of Sharma and Verma. The task is to prepare the Profit and Loss Appropriation Account for the year ended 31st March 2019.
Step-by-Step Solution:
- Calculation of Profit: The first step is to calculate the net profit of the firm for the year ended 31st March 2019. The given profit is 280,000.
- Salary to Verma: As per the partnership deed, Verma is entitled to a salary of 5,000 per month. Therefore, the salary for the year would be 5,000 x 12 = 60,000. This amount is deducted from the net profit to arrive at the net profit available for appropriation.
- Net Profit Available for Appropriation: The net profit available for appropriation is calculated by deducting the salary of Verma from the net profit. Therefore, 280,000 - 60,000 = 220,000.
- Commission to Sharma: As per the partnership deed, Sharma is entitled to a commission of 10% of the net profit after deducting the salary of Verma. Therefore, Sharma's commission would be 10% of 220,000, which is 22,000.
- Balance Profit: The balance profit is calculated by deducting the commission of Sharma from the net profit available for appropriation. Therefore, 220,000 - 22,000 = 198,000.
Conclusion:
The Profit and Loss Appropriation Account of Sharma and Verma for the year ended 31st March 2019 shows that the net profit available for appropriation is 220,000. After deducting Sharma's commission of 22,000, the balance profit carried to next year's account is 198,000.
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sharma and verma are partner sharing profit in thre ratoi 4:1 in a firm their capital on 1st april 2018 were sharma 500000 and varma 100000 the partner deed provied that shrma will get a commision 10% of the nret propfit after allowing a salary of 5000 pre month to verma the profit of the firm for the year ended 31 st marcg 2019 wasv 280000 prepare profit and loss appropriation account of shrama and varma ( paryt 2 ) Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts?
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sharma and verma are partner sharing profit in thre ratoi 4:1 in a firm their capital on 1st april 2018 were sharma 500000 and varma 100000 the partner deed provied that shrma will get a commision 10% of the nret propfit after allowing a salary of 5000 pre month to verma the profit of the firm for the year ended 31 st marcg 2019 wasv 280000 prepare profit and loss appropriation account of shrama and varma ( paryt 2 ) Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about sharma and verma are partner sharing profit in thre ratoi 4:1 in a firm their capital on 1st april 2018 were sharma 500000 and varma 100000 the partner deed provied that shrma will get a commision 10% of the nret propfit after allowing a salary of 5000 pre month to verma the profit of the firm for the year ended 31 st marcg 2019 wasv 280000 prepare profit and loss appropriation account of shrama and varma ( paryt 2 ) Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for sharma and verma are partner sharing profit in thre ratoi 4:1 in a firm their capital on 1st april 2018 were sharma 500000 and varma 100000 the partner deed provied that shrma will get a commision 10% of the nret propfit after allowing a salary of 5000 pre month to verma the profit of the firm for the year ended 31 st marcg 2019 wasv 280000 prepare profit and loss appropriation account of shrama and varma ( paryt 2 ) Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts?.
sharma and verma are partner sharing profit in thre ratoi 4:1 in a firm their capital on 1st april 2018 were sharma 500000 and varma 100000 the partner deed provied that shrma will get a commision 10% of the nret propfit after allowing a salary of 5000 pre month to verma the profit of the firm for the year ended 31 st marcg 2019 wasv 280000 prepare profit and loss appropriation account of shrama and varma ( paryt 2 ) Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about sharma and verma are partner sharing profit in thre ratoi 4:1 in a firm their capital on 1st april 2018 were sharma 500000 and varma 100000 the partner deed provied that shrma will get a commision 10% of the nret propfit after allowing a salary of 5000 pre month to verma the profit of the firm for the year ended 31 st marcg 2019 wasv 280000 prepare profit and loss appropriation account of shrama and varma ( paryt 2 ) Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for sharma and verma are partner sharing profit in thre ratoi 4:1 in a firm their capital on 1st april 2018 were sharma 500000 and varma 100000 the partner deed provied that shrma will get a commision 10% of the nret propfit after allowing a salary of 5000 pre month to verma the profit of the firm for the year ended 31 st marcg 2019 wasv 280000 prepare profit and loss appropriation account of shrama and varma ( paryt 2 ) Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts?.
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