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Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts?
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Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entit...
Preparation of Profit and Loss Appropriation Account
The Profit and Loss Appropriation Account outlines how the net profit is distributed among partners and other entitlements. Here’s how to prepare it for Asha and Lata based on the given data.
Net Profit for the Year
- Net Profit = 540,000
Salary and Commission Calculations
- Asha’s Salary: 200,000
- Asha’s Commission: 8% of net profit before commission
- Calculation: 8% of 540,000 = 43,200
- Lata’s Commission: 8% of net profit after Asha's salary and commission
- Net profit after Asha's salary = 540,000 - 200,000 = 340,000
- Calculation: 8% of 340,000 = 27,200
Total Appropriation
- Total Appropriation to Asha and Lata is calculated as follows:
- Asha's Total Entitlement = Salary + Commission
- = 200,000 + 43,200 = 243,200
- Lata's Total Entitlement = Commission
- = 27,200
Distribution of Net Profit
- Total Entitlements = Asha’s Total + Lata’s Total
- = 243,200 + 27,200 = 270,400
- Remaining Profit for Distribution:
- = Net Profit - Total Entitlements
- = 540,000 - 270,400 = 269,600
Final Profit Distribution
- Asha’s Share = (1/3) * Remaining Profit
- = 89,866.67 (approx.)
- Lata’s Share = (2/3) * Remaining Profit
- = 179,733.33 (approx.)
Final Appropriation Account Summary
- Net Profit: 540,000
- Asha’s Salary: 200,000
- Asha’s Commission: 43,200
- Lata’s Commission: 27,200
- Asha’s Share from Remaining Profit: 89,866.67
- Lata’s Share from Remaining Profit: 179,733.33
This appropriation account provides a clear overview of how profits are allocated among partners while adhering to their entitlements and profit-sharing ratio.
The Profit and Loss Appropriation Account outlines how the net profit is distributed among partners and other entitlements. Here’s how to prepare it for Asha and Lata based on the given data.
Net Profit for the Year
- Net Profit = 540,000
Salary and Commission Calculations
- Asha’s Salary: 200,000
- Asha’s Commission: 8% of net profit before commission
- Calculation: 8% of 540,000 = 43,200
- Lata’s Commission: 8% of net profit after Asha's salary and commission
- Net profit after Asha's salary = 540,000 - 200,000 = 340,000
- Calculation: 8% of 340,000 = 27,200
Total Appropriation
- Total Appropriation to Asha and Lata is calculated as follows:
- Asha's Total Entitlement = Salary + Commission
- = 200,000 + 43,200 = 243,200
- Lata's Total Entitlement = Commission
- = 27,200
Distribution of Net Profit
- Total Entitlements = Asha’s Total + Lata’s Total
- = 243,200 + 27,200 = 270,400
- Remaining Profit for Distribution:
- = Net Profit - Total Entitlements
- = 540,000 - 270,400 = 269,600
Final Profit Distribution
- Asha’s Share = (1/3) * Remaining Profit
- = 89,866.67 (approx.)
- Lata’s Share = (2/3) * Remaining Profit
- = 179,733.33 (approx.)
Final Appropriation Account Summary
- Net Profit: 540,000
- Asha’s Salary: 200,000
- Asha’s Commission: 43,200
- Lata’s Commission: 27,200
- Asha’s Share from Remaining Profit: 89,866.67
- Lata’s Share from Remaining Profit: 179,733.33
This appropriation account provides a clear overview of how profits are allocated among partners while adhering to their entitlements and profit-sharing ratio.
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Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts?
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Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts?.
Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts?.
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Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts?, a detailed solution for Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts? has been provided alongside types of Asha and Lata are partner sharing profit in ratio of 1:2.Asha is entitled to salary of 200000p.a and a commission of 8 percentage of net profit before charging any commission.lata is entitled to a commission of 8 percentage of net profit charging her commission.net profit for the year ended 31st March 2024amounted to 540000. prepare P&L appropriation accounts? theory, EduRev gives you an
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