12th Ts grewal 2021-22 Question 31 to 35 Accounting for partnership firm- fundamentals

Page No 2.87:

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

 



Page No 2.87:

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

 



Page No 2.87:

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, 2021. 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, 2021

Dr.

Cr.

Particulars

Amount

`

Particulars

Amount

`

Partners’ Commission:

 

Profit and Loss A/c

(Net Profit)

1,80,000

A’s Capital A/c

6,000

 

 

 

B’s Capital A/c

9,000

 

 

 

C’s Capital A/c

6,000

 

 

 

D’s Capital A/c

9,000

30,000

 

 

Profit transferred to:                     

 

 

 

A’s Capital A/c

60,000

 

 

 

B’s Capital A/c

45,000

 

 

 

C’s Capital A/c

30,000

 

 

 

D’s Capital A/c

15,000

1,50,000

 

 

 

1,80,000

 

1,80,000

 

 

 

 

 

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

 



Page No 2.87:

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, 2020 was ` 4,20,000. Show distribution of profit.

Answer:

Profit and Loss Appropriation Account

for the year ended March 31, 2020

Dr.

Cr.

Particulars

Amount

( `)

Particulars

Amount

( `)

Partners’ Salary:

 

Profit and Loss A/c (Net Profit)

4,20,000

X’s Capital A/c

(10,000×12)

1,20,000

 

 

 

Y’s Capital A/c

25,000

1,45,000

 

 

Partners’ Commission:

 

 

 

X’s Capital A/c

27,500

 

 

 

Y’s Capital A/c

22,500

50,000

 

 

Profit transferred to:

 

 

 

X’s Capital A/c

1,12,500

 

 

 

Y’s Capital A/c

1,12,500

2,25,000

 

 

 

4,20,000

 

4,20,000

 

 

 

 

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

 

= 2,47,500 ×  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× ½ = `1,12,500

 



Page No 2.88:

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