12th Class Accountancy Fundamentals of Partnership Question Bank MCQs - Accounting for Partnership Firm : Fundamental

According to profit and loss account, the net profit for the year is Rs.4,20,000. Salary of a partner is Rs.5,000 per month and the commission of another partner is Rs.10,000. The interest on drawings of partners is Rs.4,000. The net profit as per profit and Loss appropriation account will be:

A) Rs.3,54,000

B) Rs.3,46,000

C) Rs.4,09,000

D) Rs.4,01,000

Correct Answer: A

Solution :

[a] Rs.3,54,000

Hint: Net Profit = [4,20,000 + 4,000 - (5,000 \[\times \] 12) -10,000]

=Rs.3,54,000