1 A,B and C are partners in a firm. A and B sharing profits in the ratio of 5:3 and C receiving a salary 150 of 300 per month, plus a commission of 5% on the profits after charging such salary and commission, or 1/5th of the profits of the firm, whichever is larger. Any excess of the latter over the A former is, under the Partnership agreement, to be borne personally by B. The profit for the year 10,210 ended 31st March, 2018 amounted to 21,420 after charging C's Salary. Prepare Profit and Loss appropriation a/c.
1 A,B and C are partners in a firm. A and B sharing profits in the ratio of 5:3 and C receiving a salary 150 of 300 per month, plus a commission of 5% on the profits after charging such salary and commission, or 1/5th of the profits of the firm, whichever is larger. Any excess of the latter over the A former is, under the Partnership agreement, to be borne personally by B. The profit for the year 10,210 ended 31st March, 2018 amounted to 21,420 after charging C's Salary. Prepare Profit and Loss appropriation a/c.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:1 A,B and C are partners in a firm. A and B sharing profits in the ratio of 5:3 and C receiving a salary
150
of 300 per month, plus a commission of 5% on the profits after charging such salary and
commission, or 1/5th of the profits of the firm, whichever is larger. Any excess of the latter over the
A
former is, under the Partnership agreement, to be borne personally by B. The profit for the year
10,210
ended 31st March, 2018 amounted to 21,420 after charging C's Salary. Prepare Profit and Loss
appropriation a/c.
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