[NCERT] Q 7 Accounting for Partnership Basic Concepts Solutions Class 12
Solutions of Question number 7 of Accounting for Partnership Basic Concepts NCERT Accountancy solutions Class 12 CBSE Board.
The partnership agreement between Maneesha and Girish provides that:
(i) Profits will be shared equally:
(ii) Maneesh will be allowed a salary of ₹ 400 p.m:
(iii) Girish who manages the sales department will be allowed a commission equal to 10% of the net profits, after allowing Maneesh’s salary:
(iv) 7% p.a. interest will be allowed on partner’s fixed capital;
(v) 5% p.a. interest will be charged on partner’s annual drawings:
(vi) The fixed capitals of Maneesh and Girish are ₹ 1,00,000 and ₹ 80,000, respectively. Their annual drawings were ₹ 16,000 and 14,000, respectively. The net profit for the year ending March 31, 2019 amounted to ₹ 40,000;
Prepare firm’s Profit and Loss Appropriation Account.
[Ans: Profit transferred to the Capital Accounts of Maneesh and Girish each, ₹ 10,290.]
Solution:-
