Please solve 67,68
Q67. (HOTS ) Ajoo and Bajoo were in partnership sharing profit and losses in the proportion of 4/5 and 1/5 respectively. In appreciation of the services of their employee Sajoo who was in receipt of salary of Rs.2,400 p.a. and a commission of 5% on the net profits after charging such salary and commission, they took him into partnership as from 1-4-2016 giving him 1/8th share of the profit.
The agreement provided that any excess over his former remuneration to which Sajoo becomes entitled will be paid out of Ajoo's share of profit.
The profit for the year ended 31st March, 2017 amounted to Rs. 57,000. Divide this between the partners.
[ Ans. Profit Ajoo Rs. 39,475; Bajoo Rs. 10,400 ; Sajoo Rs. 7,125.]
Q68. [HOTS) P, Q and R are in partnership. P and Q sharing profit in the ratio of 4 :3 and R receiving a salary of Rs. 20,000 p.a. plus a commission of 10% of the profit after charging his salary and commission of th of the profit of the firm whichever is more. Any excess of the latter over the former received by R is, under the partnership deed, to be borne by P and Q in the ratio of 3 : 2. The profit for the year ending 31st March, 2017 came to 3,85,000 after charging R's salary.
Divide the profits among partners.
[ Ans. Profit P Rs. 1,92,500 ; Q Rs. 1,45,000 and R Rs. 67,500.]
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Q.67
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Q.67
| Actual Appropriation | ||
| Total Profits | 57,000 | |
| Less : Profit share to Sajoo from firm (Note) | 5,000 | |
| Profit available for other partners to be distributed in ratio 4:1) | 52,000 | |
| Profit share of Ajoo | (52,000 x 4/5) | 41,600 |
| Less : Borne for Sajoo | 2,125 | |
| Net profit credited | 39,475 | |
| Profit share of Bajoo | (52,000 x 1/5) | 10,400 |
| Less : Borne for Sajoo | - | |
| Net profit credited | 10,400 | |
| Profit share of Sajoo from firm | 5,000 | |
| Add : Borne by Ajoo to match up profit | 2,125 | |
| Net profit credited | 7,125 | |
| Calculation of Remuneration of Sajoo and amount to be borne by Ajoo for sajoo's share | ||
| Remuneration of Sajoo | ||
| Profit before Salary and Commission | 57,000 | |
| Less : Salary | 2,400 | |
| Profit before Commission | 54,600 | |
| Less : Commission @ 5% on profit after charging commission | 54,600 x 5/105 | 2,600 |
| Profit after commission | 52,000 | |
| Therefore Total Remuneration of Sajoo | (2,400 + 2,600) | 5,000 |
| Profit share of Sajoo as per PSR | (57,000 x 1/8) | 7,125 |
| Therefore Sajoo would get profit from firm to the extent of remuneration | 5,000 | |
| Excess of Remuneration to be borne by Ajoo | (7,125 - 5,000) | 2,125 |
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