PARTNERSHIP Solve pls...........!!

PLEASE sOLVE THIS..................cALCULATE ONLY  B'S  COMMISSION.......................

A & B are partners Sharing Profits and losse in the ratio 3:1 .capitals of A & B 50,000, 30,000 During the year the earned profit 50,000. The term of partnership are as folloews:

1) A will get a Commision 2% on turnover
b) Intrest on Capital is to be Charged @ 6% p.a
c) B will get a Salary Rs. 500 P.M
d) B will get Commision of 5% on profit after deduction of all expenses including Such Commision

Partner's Drawings for the year were A Rs. 8,000 B Rs. 6,000. Turnover for the year was Rs 3,00,000

 WHAT AMOUNT OF COMMISSION IS TO BE SHOWN IN P&L APPROPRIATION A/C

COMMISSION......................??

ANS......IS    .....1581..........HOW IT CAN BE.......PLS EXPLAIN IN DETAIL.....................!!

Profit                                                50,000

A's Commission on sales             (6,000)

B's Salary                                         ( 6,000)

Int on capital                                     (4800)

Net Profit                                            33,200

B's Commission -- 33200*5/105  = 1581

Originally posted by : Chiradeep.R.H
	Profit                                                50,000 A's Commission on sales             (6,000) B's Salary                                         ( 6,000) Int on capital                                     (4800) Net Profit                                            33,200 B's Commission -- 33200*5/105  = 1581

thanx.....sir........

But how we know that............we use that formula Rate /100+rate....for calculating.........commission.......!!

Mr.Harish it is clearly mentioned in the question that the commission has to be calculated on net profits after deducting all expenses including such commission. 

So we have to do backward calculations

how did u calculate a's commission on sales

 

@ sruthy

At the end of the question, TUrnover is given as 3,00,000.

Since A's commission is to be 2% of the turnover, it will be 3,00,000*2%= Rs. 6,000.

 

Agreed with Mr.Sanjay.

but i am not gettin the answer if i do using partner's capital accounts.. (ie. calculatin their profits and losses seperately)

u av to prepare the p&l appropriation a/c for finding net distributable profit.