Question 31:
Shiv, Mohan and Gopal are
partners sharing profits and losses in the ratio of 2 : 2 : 1 respectively. Shiv is
entitled to a commission of 10% on the net profit. Net profit for the year is ` 1,10,000.
Determine the amount of commission payable to Shiv.
Answer:
Net Profit before charging commission = ` 1,10,000
Commission to Shiv = 10% of on Net Profit before charging such commission
Partner' s Commission = (Net
profit×rate of commission)/100
Shiv ' s Commission
=(1,10,000×10)/100=11,000
Question 32:
Abha, Bobby and Vineet are
partners sharing profits and losses equally. As per Partnership Deed, Vineet is
entitled to a commission of 10% on the net profit after charging such
commission. The net profit before charging commission is `2,20,000.
Determine the amount of commission payable to Vineet.
Answer:
Net Profit before charging Commission = ` 2,20,000
Commission to Vineet = 10% of on Net Profit after charging such commission
Partner' s Commission = (Net profit×Rate of
commission)/(100+Rate of commission)
Vineet's Commission
=(2,20,000×10)/(100+10)=20,000
Question 33:
A, B, C, and D are partners in a firm sharing profits as 4 : 3 : 2 : 1 respectively. It earned a profit of `1,80,000 for the year ended 31st March, 2022. As per the Partnership Deed, they are to charge a commission @ 20% of the profit after charging such commission which they will share as 2 : 3 : 2 : 3. You are required to show appropriation of profits among the partners.
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2022 |
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Dr. |
Cr. |
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Particulars |
` |
Particulars |
` |
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Partners’ Commission: |
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Profit and Loss A/c (Net Profit) |
1,80,000 |
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A’s Capital A/c |
6,000 |
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B’s Capital A/c |
9,000 |
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C’s Capital A/c |
6,000 |
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D’s Capital A/c |
9,000 |
30,000 |
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Profit transferred to: |
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A’s Capital A/c |
60,000 |
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B’s Capital A/c |
45,000 |
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C’s Capital A/c |
30,000 |
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D’s Capital A/c |
15,000 |
1,50,000 |
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1,80,000 |
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1,80,000 |
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Working Notes:
WN 1 Calculation of Partners’ Commission
Partners’ Commission = 20% on Net Profit after charging such commission
Partners' Commission = (Net profit×Rate of commission)/(100+Rate of commission)
Partners' Commission = (1,80,000×20)/(100+20)=30,000
This commission is to be shared by the partners in the ratio of 2 : 3 : 2 : 3
A' s Commission =(30,000×2)/10=6,000
B' s Commission =(30,000×3)/10=9,000
C' s Commission =(30,000×2)/10=6,000
D's Commission =(30,000×3)/10=9,000
WN 2 Calculation of Profit Share of each Partner
Profit available for Distribution = 1,80,000 ` 30,000 = ` 1,50,000
Profit sharing ratio = 4 : 3 : 2 : 1
A' s Profit share=(1,50,000×4)/10=60,000
B' s Profit share=(1,50,000×3)/10=45,000
C' s Profit share=(1,50,000×2)/10=30,000
D's Profit share=(1,50,000×1)/10=15,000
Question 34:
X and Y are partners
in a firm. X
is entitled to a salary of ` 10,000 per month and commission of 10% of the net profit
after partners' salaries but before charging commission. Y is entitled
to a salary of ` 25,000 p.a. and commission of 10% of the net profit after
charging all commission and partners' salaries. Net profit before providing for
partners' salaries and commission for the year ended 31st March, 2022 was ` 4,20,000. Show
distribution of profit.
Answer:
Profit and Loss Appropriation Account for the year ended March 31, 2022 |
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Dr. |
Cr. |
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Particulars |
( `) |
Particulars |
( `) |
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Partners’ Salary: |
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Profit and Loss A/c (Net Profit) |
4,20,000 |
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X (10,000 × 12) |
1,20,000 |
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Y |
25,000 |
1,45,000 |
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Partners’ Commission: |
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X’s Capital A/c |
27,500 |
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Y’s Capital A/c |
22,500 |
50,000 |
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Profit transferred to: |
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X’s Capital A/c |
1,12,500 |
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Y’s Capital A/c |
1,12,500 |
2,25,000 |
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4,20,000 |
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4,20,000 |
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Working Notes:
WN 1 Calculation of Commission
Commission to X = 10% of Net Profit after partners’
salaries but before charging such commission
Profit after Partners’ Salaries = 4,20,000 ` 1,45,000 = ` 2,75,000
Commission to X |
= Profit after Partners’ Salaries × Rate of commission / 100 |
|
= 2,75,000 × 10 /100= 27,500 |
Commission to Y = 10% of Net Profit after charging
Commission and Partners’ Salaries
Profit after commission and partners’ salaries = 4,20,000- ` 1,45,000- ` 27,500 = ` 2,47,500
Commission to Y |
= Profit after commission and partners’ salaries × Rate of commission / 100+Rate |
|
= 2,45,500 × 10 /100+10= 22,500 |
WN 2 Calculation of Profit Share of each Partner
Profit available for distribution = 4,20,000- ` 1,45,000 -` 50,000 = `2,25,000
Profit sharing ratio = 1 : 1
Profit share of each X and Y =
2,25,000× 1/2
Question 35:
Ram and Mohan, two partners, drew for their personal use `1,20,000 and ` 80,000. Interest is chargeable @ 6% p.a. on the drawings. What is the amount of interest chargeable from each partner?
Answer:
In this question, date of drawings made by the partners is not given. Therefore, interest on drawings is calculated on average basis for a period of six months.
Interest on Ram’s Drawings =
1,20,000× 6/ 100×6/12=3,600
Interest on Mohan’s Drawings
= 80,000× 6/ 100×6/12=2,400
Ts Grewal Solution 2022-2023
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Class 12 / Volume – I
Chapter 1 – Accounting For Partnership Firms Fundamentals
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