QUESTION: 78
Atul, Bipul and Charu are partners sharing profits equally. Bipul is guaranteed minimum profit of ₹ 200,000 per annum Salary is payable to Bipul of ₹10,000 per month. Net Profit for the year ended 31st March, 2022 is ₹ 6,60,000.
Prepare Profit & Loss Appropriation Account for the year.
Answer:
Working Note:
Profit for the year = 6,60,000
Less: Salary = 120,000
Distributable Profit = 5,40,000 ₹
Less: Charu’s Share In Profit = 2,00,000
Remaining Distributable Profit = 3,40,000 ₹
Profit Distributable between equally among remaining partners:
Atul: 340000×1/2 = 170000 ₹
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Hey! Would you mind providing video solutions? Thanks.
may be in forthcoming months but not with confirmation.