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a and b are partners in the ratio of of 3 ratio 2 to respectively with capitals rupees 40000 and 30000 respectively interest on capital is agreed 5% per annum bi will be paid salary of of rupees 3000 per annum which he has not withdrawn. during the year 2013 the profit before charging interest on capital but after charging b e salary amounted 2 rupees 12000 the manager is to to be paid 5% commission on this amount prepare profit and loss account appropriation account
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a and b are partners in the ratio of of 3 ratio 2 to respectively with...
Profit and Loss Account
Revenue:
- Sales:
Expenses:
- Cost of Goods Sold:
- B's Salary: 3000
Profit before Interest on Capital: 12000
Appropriation Account
Profit before Interest on Capital: 12000
Less: B's Salary: 3000
Less: Manager's Commission (5% of 9000): 450
Net Profit: 8550
Distribution of Profits:
A's Share (3/5 x 8550): 5130
B's Share (2/5 x 8550): 3420
Explanation:
The Profit and Loss Account shows the revenue earned and expenses incurred during the year. In this case, the revenue is from sales and the expenses are the cost of goods sold and B's salary. The profit before charging interest on capital is 12000.
The Appropriation Account shows how the profits are distributed among the partners and other stakeholders. The net profit is calculated by deducting B's salary and the manager's commission from the profit before interest on capital. The manager's commission is calculated as 5% of the profit before B's salary.
The distribution of profits is based on the partnership agreement, which states that A and B share profits in the ratio of 3:2. A's share is calculated as 3/5 of the net profit, and B's share is calculated as 2/5 of the net profit.
Revenue:
- Sales:
Expenses:
- Cost of Goods Sold:
- B's Salary: 3000
Profit before Interest on Capital: 12000
Appropriation Account
Profit before Interest on Capital: 12000
Less: B's Salary: 3000
Less: Manager's Commission (5% of 9000): 450
Net Profit: 8550
Distribution of Profits:
A's Share (3/5 x 8550): 5130
B's Share (2/5 x 8550): 3420
Explanation:
The Profit and Loss Account shows the revenue earned and expenses incurred during the year. In this case, the revenue is from sales and the expenses are the cost of goods sold and B's salary. The profit before charging interest on capital is 12000.
The Appropriation Account shows how the profits are distributed among the partners and other stakeholders. The net profit is calculated by deducting B's salary and the manager's commission from the profit before interest on capital. The manager's commission is calculated as 5% of the profit before B's salary.
The distribution of profits is based on the partnership agreement, which states that A and B share profits in the ratio of 3:2. A's share is calculated as 3/5 of the net profit, and B's share is calculated as 2/5 of the net profit.
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a and b are partners in the ratio of of 3 ratio 2 to respectively with capitals rupees 40000 and 30000 respectively interest on capital is agreed 5% per annum bi will be paid salary of of rupees 3000 per annum which he has not withdrawn. during the year 2013 the profit before charging interest on capital but after charging b e salary amounted 2 rupees 12000 the manager is to to be paid 5% commission on this amount prepare profit and loss account appropriation account Related: Profit and Loss Appropriation Account - Class 12, Accountancy?
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a and b are partners in the ratio of of 3 ratio 2 to respectively with capitals rupees 40000 and 30000 respectively interest on capital is agreed 5% per annum bi will be paid salary of of rupees 3000 per annum which he has not withdrawn. during the year 2013 the profit before charging interest on capital but after charging b e salary amounted 2 rupees 12000 the manager is to to be paid 5% commission on this amount prepare profit and loss account appropriation account Related: Profit and Loss Appropriation Account - Class 12, Accountancy? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about a and b are partners in the ratio of of 3 ratio 2 to respectively with capitals rupees 40000 and 30000 respectively interest on capital is agreed 5% per annum bi will be paid salary of of rupees 3000 per annum which he has not withdrawn. during the year 2013 the profit before charging interest on capital but after charging b e salary amounted 2 rupees 12000 the manager is to to be paid 5% commission on this amount prepare profit and loss account appropriation account Related: Profit and Loss Appropriation Account - Class 12, Accountancy? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for a and b are partners in the ratio of of 3 ratio 2 to respectively with capitals rupees 40000 and 30000 respectively interest on capital is agreed 5% per annum bi will be paid salary of of rupees 3000 per annum which he has not withdrawn. during the year 2013 the profit before charging interest on capital but after charging b e salary amounted 2 rupees 12000 the manager is to to be paid 5% commission on this amount prepare profit and loss account appropriation account Related: Profit and Loss Appropriation Account - Class 12, Accountancy?.
a and b are partners in the ratio of of 3 ratio 2 to respectively with capitals rupees 40000 and 30000 respectively interest on capital is agreed 5% per annum bi will be paid salary of of rupees 3000 per annum which he has not withdrawn. during the year 2013 the profit before charging interest on capital but after charging b e salary amounted 2 rupees 12000 the manager is to to be paid 5% commission on this amount prepare profit and loss account appropriation account Related: Profit and Loss Appropriation Account - Class 12, Accountancy? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about a and b are partners in the ratio of of 3 ratio 2 to respectively with capitals rupees 40000 and 30000 respectively interest on capital is agreed 5% per annum bi will be paid salary of of rupees 3000 per annum which he has not withdrawn. during the year 2013 the profit before charging interest on capital but after charging b e salary amounted 2 rupees 12000 the manager is to to be paid 5% commission on this amount prepare profit and loss account appropriation account Related: Profit and Loss Appropriation Account - Class 12, Accountancy? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for a and b are partners in the ratio of of 3 ratio 2 to respectively with capitals rupees 40000 and 30000 respectively interest on capital is agreed 5% per annum bi will be paid salary of of rupees 3000 per annum which he has not withdrawn. during the year 2013 the profit before charging interest on capital but after charging b e salary amounted 2 rupees 12000 the manager is to to be paid 5% commission on this amount prepare profit and loss account appropriation account Related: Profit and Loss Appropriation Account - Class 12, Accountancy?.
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