51 :- Amit, Binita, and Charu are the three partners. On 1st April, 2024, their capitals stood as: Amit Rs 1,00,000, Binita Rs 2,00,000, and Charu Rs 3,00,000. It was decided that:
(a)They would receive interest on Capitals @ 5% p.a.,
(b) Amit would get a salary of Rs 10,000 per month,
(c) Binita would receive commission @ 5% of net profit after deduction of commission, and
(d) 10% of the net profit would be transferred to the General Reserve.
Before the above items were taken into account, profit for the year ended 31st March, 2024 was ₹ Rs 5,00,000.
Prepare the Profit and Loss Appropriation Account and the Capital Accounts of the Partner.
Solution :-
WORKING NOTES :-
Calculation of Binita’s commission
Binita’s commission = Rs 5,00,000 x 5/105
= Rs 23,810