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Aditi and Shruti are partners sharing and losses in 2:3 business is being carried from the premises owned by Aditi on a quarterly rent of 15000 aditi is entitled to salary of 20000 per month and Shruti is to get commission @5% of net sales, which during the year was 60,00,000 net profit for the year ended 31st March 2022 before providing for rent was 800,000
you are required to draw profit and loss appropriation account for the year ended 31st March 2022?
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Aditi and Shruti are partners sharing and losses in 2:3 business is be...
Profit and Loss Appropriation Account
For the Year Ended 31st March 2022
Net Profit Before Rent
- Net Profit: Rs. 8,00,000
Less: Rent
- Rent for the year: Rs. 15,000 x 4 = Rs. 60,000
Adjusted Net Profit
- Adjusted Net Profit: Rs. 8,00,000 - Rs. 60,000 = Rs. 7,40,000
Appropriation of Profit
- Aditi's Salary: Rs. 20,000 x 12 = Rs. 2,40,000
- Shruti's Commission: 5% of Net Sales
- Net Sales: Rs. 60,00,000
- Commission: 0.05 x Rs. 60,00,000 = Rs. 3,00,000
Calculation of Appropriations
- Total Appropriations (Aditi's Salary + Shruti's Commission):
- Rs. 2,40,000 + Rs. 3,00,000 = Rs. 5,40,000
Remaining Profit for Partners
- Remaining Profit: Rs. 7,40,000 - Rs. 5,40,000 = Rs. 2,00,000
Distribution of Remaining Profit
- Aditi's Share: (2/5) x Rs. 2,00,000 = Rs. 80,000
- Shruti's Share: (3/5) x Rs. 2,00,000 = Rs. 1,20,000
Final Appropriation Summary
- Total Appropriated: Rs. 7,40,000
- Aditi: Salary Rs. 2,40,000 + Share Rs. 80,000 = Rs. 3,20,000
- Shruti: Commission Rs. 3,00,000 + Share Rs. 1,20,000 = Rs. 4,20,000
This Profit and Loss Appropriation Account provides a clear overview of how the profits are allocated between the partners, taking into account their salaries, commissions, and profit sharing ratios.
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Aditi and Shruti are partners sharing and losses in 2:3 business is being carried from the premises owned by Aditi on a quarterly rent of 15000 aditi is entitled to salary of 20000 per month and Shruti is to get commission @5% of net sales, which during the year was 60,00,000 net profit for the year ended 31st March 2022 before providing for rent was 800,000 you are required to draw profit and loss appropriation account for the year ended 31st March 2022?
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Aditi and Shruti are partners sharing and losses in 2:3 business is being carried from the premises owned by Aditi on a quarterly rent of 15000 aditi is entitled to salary of 20000 per month and Shruti is to get commission @5% of net sales, which during the year was 60,00,000 net profit for the year ended 31st March 2022 before providing for rent was 800,000 you are required to draw profit and loss appropriation account for the year ended 31st March 2022? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Aditi and Shruti are partners sharing and losses in 2:3 business is being carried from the premises owned by Aditi on a quarterly rent of 15000 aditi is entitled to salary of 20000 per month and Shruti is to get commission @5% of net sales, which during the year was 60,00,000 net profit for the year ended 31st March 2022 before providing for rent was 800,000 you are required to draw profit and loss appropriation account for the year ended 31st March 2022? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Aditi and Shruti are partners sharing and losses in 2:3 business is being carried from the premises owned by Aditi on a quarterly rent of 15000 aditi is entitled to salary of 20000 per month and Shruti is to get commission @5% of net sales, which during the year was 60,00,000 net profit for the year ended 31st March 2022 before providing for rent was 800,000 you are required to draw profit and loss appropriation account for the year ended 31st March 2022?.
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