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According to profit and loss account the net profit for the year is rs 4,20,000. salary of a partner is rs 5,000 per month and the commission of another partner is rs 10,000 the interest on drawing of the partners is rs 4,000 the net profit as per the profit and loss appropriation account will be:?
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According to profit and loss account the net profit for the year is rs...
To determine the net profit as per the profit and loss appropriation account, you would need to subtract the salaries and commissions of the partners and the interest on their drawings from the net profit shown in the profit and loss account.
In this case, the net profit as per the profit and loss appropriation account would be:
Net profit from profit and loss account - (salaries + commissions + interest on drawings)
= 4,20,000 - (5,000 x 12 + 10,000 + 4,000)
= 4,20,000 - 82,000
= 3,38,000
Therefore, the net profit as per the profit and loss appropriation account is Rs 3,38,000.
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According to profit and loss account the net profit for the year is rs...
Calculation of Net Profit as per Profit and Loss Appropriation Account

Salary of a Partner:
- One partner's salary is Rs. 5,000 per month.
- Therefore, the annual salary of this partner would be: Rs. 5,000 x 12 months = Rs. 60,000.

Commission of Another Partner:
- Another partner's commission is Rs. 10,000.
- This amount is already included in the net profit of Rs. 4,20,000.

Interest on Drawing of Partners:
- The interest on drawing of partners is Rs. 4,000.
- This amount is a charge against the net profit.

Net Profit as per Profit and Loss Appropriation Account:
- To calculate the net profit as per profit and loss appropriation account, we need to adjust the above amounts against the net profit of Rs. 4,20,000.
- Therefore, the calculation is as follows:

Net Profit as per Profit and Loss Account: Rs. 4,20,000
Less: Salary of one partner: Rs. 60,000
Less: Interest on drawing of partners: Rs. 4,000
Net Profit as per Profit and Loss Appropriation Account: Rs. 3,56,000

Explanation:
The profit and loss account shows the net profit earned by the business during the year. However, this net profit needs to be adjusted for certain items such as the salary and commission of partners, interest on drawing of partners, etc. to arrive at the net profit as per the profit and loss appropriation account. This account shows how the net profit is to be distributed among the partners. In this case, one partner's salary and another partner's commission are deducted from the net profit, while the interest on drawing of partners is added back to arrive at the net profit as per the profit and loss appropriation account.
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According to profit and loss account the net profit for the year is rs 4,20,000. salary of a partner is rs 5,000 per month and the commission of another partner is rs 10,000 the interest on drawing of the partners is rs 4,000 the net profit as per the profit and loss appropriation account will be:?
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According to profit and loss account the net profit for the year is rs 4,20,000. salary of a partner is rs 5,000 per month and the commission of another partner is rs 10,000 the interest on drawing of the partners is rs 4,000 the net profit as per the profit and loss appropriation account will be:? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about According to profit and loss account the net profit for the year is rs 4,20,000. salary of a partner is rs 5,000 per month and the commission of another partner is rs 10,000 the interest on drawing of the partners is rs 4,000 the net profit as per the profit and loss appropriation account will be:? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for According to profit and loss account the net profit for the year is rs 4,20,000. salary of a partner is rs 5,000 per month and the commission of another partner is rs 10,000 the interest on drawing of the partners is rs 4,000 the net profit as per the profit and loss appropriation account will be:?.
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