Question

(Rent Payable to a Partner). $A$ and $B$ are partners sharing profits equally. Business is being carried from the property owned by $A$ on a yearly rent of $Rs.24,000$. $A$ is to get salary of $Rs.1,20,000$ p.a. and $B$ is to get commission @5% of net sales, which during the year was $Rs.30,00,000$. Net profit for the year ended 31st March, 2018 before providing for rent was $Rs.5,00,000$.
You are required to draw Profit and Loss Appropriation Account for the year ended 31stMarch, 2018.

Answer 1

PROFIT AND LOSS APPROPRIATION ACCOUNT FOR THE YEAR 2018

Particulars	Amount	Particulars	Amount
To A's salary	1,20,000	By Net profit (5,00,000-24,000)	4,76,000
To B's commission	1,50,000
To profit transferred to- A's capital A/c- 1,03,000 B's capital A/c - 1,03,000	2,06,000
Total	4,76,000	Total	4,76,000