question_answer

You are required to answer the following questions from the above information 68 to 73.

Gagan and Juhi are partners in a firm for last 2 years. On 1st April, 2020 their capitals are Rs.4,00,000 and Rs.7,00,000 respectively. On 1st Sep, 2020 they decided to keep their capitals Fixed at Rs.5,00,000 each. On 1st Oct, 2020 they took loan of Rs.4,00,000 from Axis Bank @ 9% p.a. On 1st Jan, 2021 firm gave a loan to Juhi of Rs.2,00,000 @ 6% p.a.

Gagan is to be given monthly salary of Rs.3,500 and Juhi is to be given quarterly salary of Rs.4,000. Gagan Withdrawn Rs.24,000 in the Beginning of every quarter and Juhi withdrawn Rs.5,500 at the end of every month for personal use against the anticipated profits.

Partners are to be allowed interest on capital @ 6% per annum and Interest on Drawings is to be charged @10 % p.a.

Gagan is entitled to commission @ 8% on the profit (after considering all charge items, appropriations and interest on drawings) before charging such commission. Juhi is entitled to commission @ 8% on the final profit (after considering charge items, appropriations, interest on drawings and Gagan's commission) after charging such commission.

The profit was calculated Rs.5,04,475 (before considering charge items).

Calculate the amount of Net profit to be transferred to Profit and loss Appropriation Account?

A) Rs.5,07,475

B) Rs.4,86,475

C) Rs.4,98,475

D) Rs.4,89,475