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Gautam, Yashica and Asma entered into a partnership on 1st April, 2022 sharing profits and losses in the ratio of 3:2:1. Gautam and guaranteed that Asma’s share of profit after allowing interest on capital @ 5% p.a. would not be less than ₹ 30,000 p.a. The capitals contributed were Gautam ₹ 3,00,000, Yashica ₹ 2,00,000 and Asma ₹ 1,00,000.

Ans – b) Explanation:- Profit after interest = 1,20,000 – 15,000 – 10,000 – 5,000 = ₹ 90,000 Asma’s Share in Profit = 90,000 * 1/6 = ₹ 15,000 Deficiency to be charged from Gautam = Asma Guaranteed Profit –…

Pick the odd one out from the following

Ans – d) Explanation Salary due to a partner of the firm is the appropriation and is recorded in the profit and Loss Appropriation Account. On the other hand, interest on a loan of the partner, rent to the partner,…

X and Y are partners sharing profits equally. Z was manager who received salary of ₹ 8,000 p.m. and in addition commission of 5% on net profit after charging such commission. Profit for the year is ₹ 13,56,000 before charging salary. Find the total remuneration of Z.

Ans – a) Explanation:- Salary of Z = 8,000 * 12 = ₹ 96,000 Net Profit before charging Z’s commission = 13,56,000 – 8000 * 12 = ₹ 12,60,000 Z’s Commission = 12,60,000 * 5/105 = ₹ 60,000 Total Remuneration…

Net Profit of the firm with A, B and C as partners sharing profits equally had been ₹ 5,00,000. Their capitals had balances of ₹ 2,00,000 each and current accounts had balances of ₹ 50,000 (cr.), ₹ 40,000 (Cr.) and ₹ 30,000 (Dr.) respectively. The Partnership Deed allowed/charged interest on capitals and current account balances @ 10% p.a.

1. Ans -a) Explanation:- Interest on Partner’s Capital = 2,00,000 * 10% = ₹ 20,000 2. Ans – c) Explanation:- Interest on A’s Current A/c = 50,000 * 10% = ₹ 5,000 (Allowed) Interest on B’s Current A/c = 40,000…