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X and y are partner sharing Profit in the ratio 3:2 with capital of Rs 80,000 and Rs 60,000 respectively interst on capital is agreed @5%p.a. Y is to be allowed an annual salary of Rs6,000 which has not been withdrawn. Profit for the year ended 31st March, 2017 before interst on capital but after charging Y's salary amounted to Rs 24,000 A provisions of 5% of the profit is to be made in respect of commission to the manager, prepare an a/c showing tge allocation of profit?
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X and y are partner sharing Profit in the ratio 3:2 with capital of Rs...
Profit Allocation Overview
The profit allocation for partners X and Y involves several steps, including calculating interest on capital, deducting manager's commission, and distributing the remaining profit according to their profit-sharing ratio.
1. Profit Before Deductions
- Profit before interest on capital and manager's commission: Rs 24,000
- Y's salary: Rs 6,000
2. Profit After Salary
- Profit after deducting Y's salary:
Rs 24,000 - Rs 6,000 = Rs 18,000
3. Manager's Commission
- Provision for manager's commission (5% of profit after Y's salary):
Rs 18,000 * 5% = Rs 900
4. Profit After Manager's Commission
- Profit remaining after deducting manager's commission:
Rs 18,000 - Rs 900 = Rs 17,100
5. Interest on Capital Calculation
- Interest on X's capital:
Rs 80,000 * 5% = Rs 4,000
- Interest on Y's capital:
Rs 60,000 * 5% = Rs 3,000
6. Total Interest on Capital
- Total interest on capital:
Rs 4,000 + Rs 3,000 = Rs 7,000
7. Profit Available for Distribution
- Profit available after interest on capital:
Rs 17,100 - Rs 7,000 = Rs 10,100
8. Distribution of Remaining Profit
- Profit-sharing ratio: 3:2
- X's share:
(3/5) * Rs 10,100 = Rs 6,060
- Y's share:
(2/5) * Rs 10,100 = Rs 4,040
9. Final Profit Allocation Summary
- Total Profit Distributed:
- X: Rs 4,000 (interest) + Rs 6,060 = Rs 10,060
- Y: Rs 3,000 (interest) + Rs 6,000 (salary) + Rs 4,040 = Rs 13,040
This allocation ensures that the partners receive their due amounts based on the partnership agreement, while also accounting for Y's salary and the manager's commission.
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X and y are partner sharing Profit in the ratio 3:2 with capital of Rs 80,000 and Rs 60,000 respectively interst on capital is agreed @5%p.a. Y is to be allowed an annual salary of Rs6,000 which has not been withdrawn. Profit for the year ended 31st March, 2017 before interst on capital but after charging Y's salary amounted to Rs 24,000 A provisions of 5% of the profit is to be made in respect of commission to the manager, prepare an a/c showing tge allocation of profit?
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X and y are partner sharing Profit in the ratio 3:2 with capital of Rs 80,000 and Rs 60,000 respectively interst on capital is agreed @5%p.a. Y is to be allowed an annual salary of Rs6,000 which has not been withdrawn. Profit for the year ended 31st March, 2017 before interst on capital but after charging Y's salary amounted to Rs 24,000 A provisions of 5% of the profit is to be made in respect of commission to the manager, prepare an a/c showing tge allocation 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 X and y are partner sharing Profit in the ratio 3:2 with capital of Rs 80,000 and Rs 60,000 respectively interst on capital is agreed @5%p.a. Y is to be allowed an annual salary of Rs6,000 which has not been withdrawn. Profit for the year ended 31st March, 2017 before interst on capital but after charging Y's salary amounted to Rs 24,000 A provisions of 5% of the profit is to be made in respect of commission to the manager, prepare an a/c showing tge allocation of profit? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X and y are partner sharing Profit in the ratio 3:2 with capital of Rs 80,000 and Rs 60,000 respectively interst on capital is agreed @5%p.a. Y is to be allowed an annual salary of Rs6,000 which has not been withdrawn. Profit for the year ended 31st March, 2017 before interst on capital but after charging Y's salary amounted to Rs 24,000 A provisions of 5% of the profit is to be made in respect of commission to the manager, prepare an a/c showing tge allocation of profit?.
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