CBSE 12: ACCOUNTANCY PAPER
CH 1: INTRODUCTION TO PARTNERSHIP
35 Marks | 1.5 Hours
Question 1: State whether the following statements are true or false. ALSO CORRECT THE FALSE STATEMENT
[6]
(i)
Valid partnership can be formulated even without a written agreement between the partners;
(ii)
Each partner carrying on the business is the principal as well as the agent for all the other partners;
(iii)
Maximum number of partners can be 50;
(iv)
Methods of settlement of dispute among the partners can’t be part of the partnership deed;
(v)
If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the
partner;
(vi)
Interest on partner’s loan is to be given @ 12% p.a., if the deed is silent about the rate.
Question 2: Profit & Loss Appropriation Account
[2]
Yadu, Madhu and Vidu are partners sharing profits and losses in the ratio of 2:2:1. There fixed capitals on April 01, 2019
were; Yadu Rs. 5,00,000, Madhu Rs. 4,00,000 and Vidhu Rs. 3,50,000. As per the partnership deed, partners are entitled
to interest on capital @ 5% p.a., and Yadu has to be paid a salary of Rs. 2,000 per month while Vidu would be receiving
a commission of Rs. 18,000. Net loss of the firm as per profit and loss account for the year ending March 31, 2019
amounted to Rs. 75,000 on the basis of above information prepare profit and loss appropriation account. Prepare profit
and loss appropriation account for the year ending March 31, 2019.
Question 3: Profit & Loss Appropriation Account with Capital Accounts
[5]
Amitabh and Babul 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. Babul is to be allowed an annual salary of Rs. 2,500. Manager is to
be allowed commission Rs. 5,000. Amitabh has also given a Loan on April 01, 2019 of Rs. 50,000 to the firm without
any agreement. During the year 2019-20, the profits earned is Rs. 22,250.
Prepare Profit and Loss Appropriation account showing the distribution of profit and the partners’ capital accounts
for the year ending March 31, 2020.
Question 4: Interest on Partner’s Capital
[3]
Josh and Krish are partners sharing profits and losses in the ratio of 3:1. Their capitals at the end of the financial year
2015-2016 were Rs. 1,50,000 and Rs. 75,000. During the year 2015-2016, Josh’s drawings were Rs. 20,000 and the
drawings of Krish were Rs. 5,000, which had been duly debited to partner’s capital accounts. Profit before charging
interest on capital for the year was Rs. 16,000. The same had also been debited in their profit sharing ratio. Krish had
brought additional capital of Rs. 16,000 on October 1, 2015. Calculate interest on capital @ 12% p.a. for the year 20152016.
Question 5: Interest on Drawings
[4]
John, a partner in Modern Tours and Travels withdrew money during the year ending March 31, 2020 from his capital
account, for his personal use. Calculate interest in drawings in each of the following alternative situations, if rate of
interest on drawings is 9% p.a.
(a) If he withdrew Rs. 3,000 per month at the beginning of the month.
(b) If has withdrawn Rs.36,000 during the year evenly at the end of each month.
(c) If the amounts withdrawn were:
Rs. 12,000 on June 01, 2019,
Rs. 8,000; on August 31, 2019,
Rs. 3,000; on September 30, 2019,
Rs. 7,000, on November 30, 2019, and
Rs. 6,000 on January 31, 2020.
DEEPA NADKARNI ACADEMY
For CBSE Tutorials in Ahmedabad: +91 9978846749 / 9825303554
Question 6: Guarantee of Profit
[3]
John and Mathew share profits and losses in the ratio of 3:2. They admit Mohanty into their firm to 1/6 share in profits.
John personally guaranteed that Mohanty’s share of profit, after charging interest on capital @ 10 per cent per annum
would not be less than Rs. 30,000 in any year. The capital provided was as follows: John Rs. 2,50,000, Mathew Rs.
2,00,000 and Mohanty Rs. 1,50,000. The profit for the year ending March 31,2015 amounted to Rs. 1,50,000 before
providing interest on capital. Show the Profit & Loss Appropriation Account if new profit-sharing ratio is 3:2:1.
Question 7: Past Adjustment
[3]
The net profit of X, Y and Z for the year ended March 31, 2020 was Rs. 60,000 and the same was distributed among
them in their agreed ratio of 3 : 1 : 1. It was subsequently discovered that the under mentioned transactions were
not recorded in the books :
(i)
Interest on Capital @ 5% p.a.
(ii)
Interest on drawings amounting to X Rs. 700, Y Rs. 500 and Z Rs. 300.
(iii)
Partner’s Salary : X Rs. 1000, Y Rs. 1500 p.a.
(iv)
The capital accounts of partners were fixed as : X Rs. 1,00,000, Y Rs. 80,000 and Z Rs. 60,000.
Record the adjustment entry.
Question 8: Guarantee by Partner to a firm
[3]
Amit, Babita and Sona form a partnership firm, sharing profits in the ratio of 3 : 2 : 1, subject to the following :
(i)
Sona’s share in the profits, guaranteed to be not less than Rs. 15,000 in any year.
(ii)
Babita gave guarantee to the effect that gross fee earned by her for the firm shall be equal to her average
gross fee of the proceeding five years, when she was carrying on profession alone (which is Rs. 25,000).
The net profit for the year ended March 31, 2017 is Rs. 75,000.
The gross fee earned by Babita for the firm was Rs. 16,000.
You are required to prepare Profit and Loss Appropriation Account.
Question 9: Past Adjustment
[2]
Nusrat, Sonu and Himesh are partners sharing profits and losses in the ratio of 5 : 3 : 2. The partnership deed provides
for charging interest on drawing’s @ 10% p.a. The drawings of Nusrat, Sonu and Himesh during the year ending March
31, 2015 amounted to Rs. 20,000, Rs. 15,000 and Rs. 10,000 respectively. After the final accounts have been prepared,
it was discovered that interest on drawings has not been taken into consideration. Give necessary adjusting journal
entry.
Question 10: Guarantee of Profit to a Partner
[4]
Mohit and Rohan share profits and losses in the ratio of 2:1. They admit Rahul as partner with 1/4 share in profits with
a guarantee that his share of profit shall be at least Rs. 50,000. The net profit of the firm for the year ending March 31,
2015 was Rs. 1,60,000. Prepare Profit and Loss Appropriation Account. (Show working notes)
DEEPA NADKARNI ACADEMY
For CBSE Tutorials in Ahmedabad: +91 9978846749 / 9825303554