48 :- A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April 2024, their capitals were: A – Rs 5,00,000 and B – Rs 3,00,000. During the year ended 31st March 2025. the firm earned a net profit of Rs 5,00,000. The terms of the partnership are:
- Interest on capital is to be allowed @6%pa
- A will get a commission @2% on net sales
- B will get a salary of Rs 5,000 per month
- B will get commission of 5% on profits after deduction of all expenses including such commission
Partner’s drawings for the year were : A Rs 80,000 and B Rs 60,000. Net sales for the year was Rs 30,00,000. After considering the above facts you are required to prepare Profit & Loss appropriation account and partner’s capital accounts.
Solution :-
WORKING NOTES :-
Calculation of B’s commission = 5/105 x (net profit – A’s commission – B’s salary- Interest on capital)
= 5/105 x (5,00,000 – 60,000 – 60,000 – 48,000)
= 5/105 x 3,32,000
= Rs 15,810