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Modern College Started Their Partnership Firm in the Name of “Be Safe” - Calculate the Amount of Profits to Be Transferred to Profit and Loss Appropriation Account

On 1st September 2020, twenty students of Modern College started their Partnership Firm in the name of “Be Safe” for selling sanitisers on digital
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Question no.’s 39, 40 and 41 are based on the hypothetical situation given below.

On 1st September 2020, twenty students of Modern College started their Partnership Firm in the name of “Be Safe” for selling sanitisers on digital mode. Since they were good friends of each other, they were not having any explicit agreement in place. All of them have agreed to invest ₹15,000/- each as capital. The books were closed on 31st March 2021, on which date the following information was provided by the firm:

ParticularsAmount (Rs.)
Sale of Sanitisers1,20,000
Cost of goods sold50,000
Total Remuneration to partners2,000 per month
Rent to a partner1,000 per month
Manager’s Commission5,000
Closing Stock as on March 31,20219,000
6% Fixed Deposit (made on 31.3.2021)20,000

Calculate the amount of profits to be transferred to Profit and Loss Appropriation Account. - 

(A) Profit ₹58,000 
(B) Profit ₹44,000 
(C) Profit ₹59,200 
(D) Profit ₹58,700




(A) Profit ₹58,000 






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