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Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.?
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Tarak and mehta enter partnership contributing rupees 192000 and rupee...
Profit and Loss Appropriation Account
Particulars | Amount (in Rs.)
--- | ---
Profit before interest | 21,120
Interest on Tarak's capital @12% | 23,040
Interest on Mehta's capital @12% | 8,640
Total Interest | 31,680
Net Profit | 52,800
Less: Salary to Tarak (2/3 of 10% of Net Profit) | 3,520
Balance | 49,280
Less: Interest on Capital | 31,680
Balance of Profit | 17,600
Distribution of Profit
Tarak's Share (2/3 of 17,600) | 11,733.33
Mehta's Share (1/3 of 17,600) | 5,866.67
Salary to Tarak | 3,520
Total | 21,120
Explanation:
In this question, Tarak and Mehta have entered into a partnership where Tarak has contributed capital of Rs. 1,92,000 and Mehta has contributed Rs. 72,000. They have agreed to allow interest on the capital @12%. The profit sharing ratio is 2:1, which means Tarak will get 2/3 of the profit, and Mehta will get 1/3 of the profit.
In the first year, the business makes a profit of Rs. 21,120 before allowing interest on capital. The total interest on Tarak's capital @12% is Rs. 23,040, and the interest on Mehta's capital @12% is Rs. 8,640. So, the total interest is Rs. 31,680. The net profit is calculated by deducting interest from the profit before interest, which is Rs. 52,800.
Tarak is entitled to a salary of 2/3 of 10% of the net profit, which is Rs. 3,520. After deducting the salary and interest on capital, the balance of profit is Rs. 17,600. This profit is then distributed between Tarak and Mehta in their profit-sharing ratio. Tarak's share is 2/3 of Rs. 17,600, which is Rs. 11,733.33, and Mehta's share is 1/3 of Rs. 17,600, which is Rs. 5,866.67. The salary to Tarak is also added to the distribution of profit, making the total profit distributed Rs. 21,120.
Particulars | Amount (in Rs.)
--- | ---
Profit before interest | 21,120
Interest on Tarak's capital @12% | 23,040
Interest on Mehta's capital @12% | 8,640
Total Interest | 31,680
Net Profit | 52,800
Less: Salary to Tarak (2/3 of 10% of Net Profit) | 3,520
Balance | 49,280
Less: Interest on Capital | 31,680
Balance of Profit | 17,600
Distribution of Profit
Tarak's Share (2/3 of 17,600) | 11,733.33
Mehta's Share (1/3 of 17,600) | 5,866.67
Salary to Tarak | 3,520
Total | 21,120
Explanation:
In this question, Tarak and Mehta have entered into a partnership where Tarak has contributed capital of Rs. 1,92,000 and Mehta has contributed Rs. 72,000. They have agreed to allow interest on the capital @12%. The profit sharing ratio is 2:1, which means Tarak will get 2/3 of the profit, and Mehta will get 1/3 of the profit.
In the first year, the business makes a profit of Rs. 21,120 before allowing interest on capital. The total interest on Tarak's capital @12% is Rs. 23,040, and the interest on Mehta's capital @12% is Rs. 8,640. So, the total interest is Rs. 31,680. The net profit is calculated by deducting interest from the profit before interest, which is Rs. 52,800.
Tarak is entitled to a salary of 2/3 of 10% of the net profit, which is Rs. 3,520. After deducting the salary and interest on capital, the balance of profit is Rs. 17,600. This profit is then distributed between Tarak and Mehta in their profit-sharing ratio. Tarak's share is 2/3 of Rs. 17,600, which is Rs. 11,733.33, and Mehta's share is 1/3 of Rs. 17,600, which is Rs. 5,866.67. The salary to Tarak is also added to the distribution of profit, making the total profit distributed Rs. 21,120.
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Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.?
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Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.?.
Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.?.
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Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.?, a detailed solution for Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.? has been provided alongside types of Tarak and mehta enter partnership contributing rupees 192000 and rupees 72000 respectivaly as capital on which they agree to allow intrest @12present p.a their profit sharing ratio is 2:1 and the business profit of Ist year is rupees 21120 before allowing intrest on capital. show the profit and loss appropriation account showing distribution of profit.? theory, EduRev gives you an
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