Question 36:
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, 2023 was ` 4,20,000. Show distribution of profit.
Answer:
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Profit and Loss Appropriation Account for the year ended March 31, 2023 |
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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 1Calculation 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
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Commission to X |
= Profit after Partners’
Salaries × Rate of commission / 100 |
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= 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
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Commission to Y |
= Profit after commission
and partners’ salaries × Rate of commission / 100+Rate |
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= 2,45,500 × 10 /100+10= 22,500 |
WN 2Calculation 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 37:
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
Question 38:
Brij and Mohan are partners
in a firm. They withdrew ` 48,000 and `
36,000 respectively during the year evenly in the middle of every month.
According to the partnership agreement, interest on drawings is to be charged @
10% p.a.
Calculate interest on drawings of the partners using the appropriate formula.
Answer:
Since, the drawings are made
evenly at the middle of every month, therefore interest on drawings is
calculated for a period of six months.
Interest on Brij's Drawings= `. 48,000×10/100×6/12= `. 2,400
Interest on Mohan's Drawings= `. 36,000×10/100×6/12= `. 1,800
Question 39;
Dev withdrew `10
000 on 15th day of every month Interest on drawings was to be charged @ 12% per
annum. Calculate interest oh Dev's Drawings. (CBSC 2019)
Answer;
Interest on Dev’s Drawings=10,000×12=1,20,000×12/100×6/12=7,200
Note ; Interest on drawing will be calculated for 6 month as average
,because same amount withdrawn in the middle of every month during the year
Question 40:
One of the partners in a
partnership firm has withdrawn `9,000 at
the end of each quarter, throughout the year. Calculate interest on drawings at
the rate of 6% per annum.
Answer:
Amount of Drawings = `
9,000 per quarter
Annual Drawings= ` (9,000 × 4) = ` 36,000
Rate of Interest on Drawings = 6% p.a.
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Average Period |
= |
(Months remaining after the
first drawings + Months remaining after the last drawings)/2 |
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= |
(9 + 0)/2 = 4.5 months
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Interest on Drawings |
= |
(Annual drawings × Rate
of Drawings/100 × Average Period/12)
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= |
(36,000 × 6/100 × 4.5/12) =
` 810 |
Ts Grewal Solution 2023-2024
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Class 12 / Volume – I