Question

Read the following text and answer the given question:

Chandrika and Tara are in partnership with Capitals of ₹ 30,00,000 and ₹ 20,00,000 respectively. Business is being carried from the property owned by Tara on a monthly rent of ₹ 10,000. Chandrika is entitled to a salary of ₹ 15,000 per quarter and Tara a salary of ₹ 5,000 per month.  Manager is entitled to a commission of 10% of profit before charging such commission. Net Profit for the year ended 31st March 2024 before any of the above adjustments was ₹ 10,00,000.

Net Profit for the year will be ______.

विकल्प

• ₹ 10,00,000

• ₹ 8,80,000

• ₹ 7,92,000

• ₹ 8,00,000

Answer 1

Net Profit for the year will be ₹ 7,92,000.

Explanation:

Dr.	PROFIT AND LOSS ACCOUNT		Cr.
Particulars	₹	Particulars	₹
To Rent (₹ 10,000 × 12)	1,20,000	By Profit for the Year	10,00.000
To Manager's Commission (10% of 8,80,000)	88,000
To Net Profit transferred to P & L Appropriation A/c	7,92,000
	10,00,000		10,00,000

 

Dr.	PROFIT AND LOSS APPROPRIATION ACCOUNT			Cr.
Particulars	₹	₹	Particulars	₹
To Salary			By Profit & Loss A/с	7,92,000
Chandrika (₹ 15,000 × 4)	60,000
Tara (₹ 5,000 × 12)	60,000	1,20,000
To Profit transferred to:
Chandrika's Capital A/с	3,36,000
Tara's Capital A/c	3,36,000	6,72,000
		7,92,000		7,92,000