wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Byju's Answer
Standard XII
Accountancy
Salary/Commission
Salary to par...
Question

Salary to partners is a/an profits.

A
charge against
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
appropriation of
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
distribution of
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
transfer of
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B appropriation of
Salary to partners is an appropriation of profits. This implies that it will be restricted to profits of the business and will not be drawn in the periods of loss.

flag
Suggest Corrections
thumbs-up
2
similar_icon
Similar questions
Q. X and Y are partners in a firm. X is entitled to a salary of ₹ 10,000 per month and commission of 10% of the net profit after partners' salaries but before charging commission. Y is entitled to a salary of ₹ 25,000 p.a. and commission of 10% of the net profit after chaging all commission and partners' salaries. Net profit before providing for partners' salaries and commission for the year ended 31st March, 2018 was ₹ 4,20,000, show distribution of profit.
Q. X and Y are partners in a firm. X is entitled to a salary of Rs. 10,000 per month and commission of 10% of the net profit after partners' salaries but before charging commission. Y is entitled to a salary of Rs. 25,000 p.a. and commission of 10% of the net profit after charging all commission and partners' salaries. Net profit before providing for partners' salaries and commission for the year ended 31st March, 2018 was Rs. 4,20,000. Show, distribution of profit.
Q. A and B are partners sharing profits in the ratio of 3 : 2. with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. B is to be allowed an annual salary of Rs. 2,500. During the year profit prior to interest on capital but after charging B's salary amounted to Rs. 12,500. A provision of 5% of the profits is to be made in respect of Manager's Commission. Prepare an account showing the allocation of profits and the Partners' Capital Accounts.
Q. X and Y are partners in a firm sharing profits in the ratio of 3 : 2. The have a manager, Z, who gets ₹ 10,000 p.m. salary plus commission of 5% of the profit after charging his salary and commission, Now, they decide to admit Z as a partner, giving him 1/5th share in the profits of the firm. Any excess amount which Z receives as a partner (over his salary and commission) will be borne by X. The profit for the year ended 31st March, 2018 amounted to ₹ 8,40,000 after charging Z's salary. Prepare Profit and Loss Appropriation Account showing the division of profit for the year.
Q. X and Y are partners in a firm sharing profits in the ratio of 3 :2.They have a manager, Z, who gets Rs.10,0000 salary plus commission of 5% of the profit after charging his salary and commission. Now, they decided to admit Z as a partner, giving him 1/5th share in the profits of the firm. Any excess amount which Z received as a partner (over his salary and commission) will be borne by X. The profit for the year ended 31st Ma 2018 amounted to Rs. 8,40,000 after charging Z's salary. Prepare Profit and Loss Appropriation Account showing the division of profit for the year.
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Calculating Salary/Commission
ACCOUNTANCY
Watch in App
explore_more_icon
Explore more
Salary/Commission
Standard XII Accountancy
Join BYJU'S Learning Program
book_image
AI Tutor
book_image
Textbooks
book_image
Question Papers
book_image
Install app
CrossIcon