Guess Paper – 2012

Class – XII

Accounting for Partnership Firms – Fundamentals

Question 1. Amit and Vijay started a partnership business on 1st April, 2010. Their capital contributions were Rs.2,00,000 and Rs.1,50,000 respectively. The partnership deed provided inter alia that:
(a) Interest on capital @ 10% p.a.
(b) Amit to get a salary of Rs.2,000 per month and Vijay Rs.3,000 per month.
(c) Profits are to be shared in the ratio of 3:2.
The profits for the year ended 31st March, 2011 before making above appropriations were Rs.2,16,000. Interest on drawings amounted to Rs.2,200 for Amit and Rs.2,500 for Vijay.
Prepare Profit and Loss Appropriation A/c.

 [Ans. Divisible profit Rs.1,25,700]

Question 2. A, B and C were partners in a firm having capitals of Rs.50,000; Rs.50,000 and Rs.1,00,000 respectively. Their current account balances were A: Rs.10,000 B: Rs.5,000 and C: Rs.2,000 (Dr.). According to the partnership deed the partners were entitled to an interest on capital @ 10% p.a. C being the working partner was also entitled to a salary of Rs.12,000 p.a. The profits were to be shared as:
(a) The first Rs.20,000 in the proportion to their capitals.
(b) Next Rs.30,000 in the ratio of 5:3:2.
(c) Remaining profits to be shared equally.
The firm made a profit of Rs.1,72,000 before charging any of the above items. Prepare the profits and loss appropriation account and pass the necessary Journal entry for the appropriation of profits.

[ Ans.; Share in divisible profit A: Rs.50,000 B: Rs.44,000 and C:Rs. 46,000]

Question 3. X and Y are partners sharing profits in proportion of 3:2 with capitals of Rs.80,000 and Rs.60,000 respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an annual salary of Rs.6,000 which has not been withdrawn. During 2009-2010 the profits for the year prior to calculation of interest on capital but after charging Y’s Salary amounted to Rs.24,000. A provision of 5% of the profit is to be made in respect of commission to the manager. Prepare an account showing the allocation of profits.
Note: Manager Commission is a charge against the profit. Hence, it must be provided before making any appropriation (such as salary, interest on capital).

[Ans. Share in D.P.; X: Rs.9,300 and Y Rs.6,200]

Question 4. A and B formed a partnership on 1st April, 2009. They agreed that out of profits:
(a) A should receive a salary of Rs.500 per month.
(b) Interest on capital should be allowed @ 6% p.a. and
(c) Remaining profits be divided equally.
A contributed a capital or Rs.50,000 on 1st April, 2009 but B brought in his capital of Rs.1,00,000 on 1st July 2009. During the year, the drawings were A Rs.15,000 and B Rs.20,000. Profits for the year ended 31st March, 2010 before the above noted salary and interest were Rs.50,000. Prepare the profit and loss appropriation account and the capital accounts of the partners.

[Ans.: Capital A/c; A Rs.62,250; B Rs.1,02,750]

Question 5. Mohan, Vijay and Anil are partners, the balance of their capital accounts being Rs.30,000; Rs.25,000 and Rs.20,000 respectively. In arriving at these figures, the profits for the year ended 31st March, 2010, Rs.24,000 had already been credited to partners in the proportion in which they shared profits. Their drawings were Rs.5,000; Rs.4,000 and Rs.3,000 respectively during the year. Subsequently, the following omissions were noticed and it was decided to bring them into account:
(a) Interest on capital @ 10% p.a.
(b) Interest on drawings: Mohan Rs.250, Vijay Rs.200 and Anil Rs.150.
Make the necessary corrections through a journal entry and show your workings clearly.

[Ans.: Dr. Anil by Rs.550 and credit Mohan by Rs.550]

Question 6. Ram, Mohan and Sohan sharing profits and losses equally have capitals Rs.1,20,000; Rs.90,000 and Rs.60,000. For the year 2009, interest was credited to them @ 6% instead of 5%. Give the adjusting journal entry.

[Ans.: Debit Ram and Credit Sohan by Rs.300]

Question 7. Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2:1:2. Their capitals were fixed at Rs.3,00,000; Rs.1,00,000 and Rs.2,00,000 respectively. For the year 2009, interest on capital was credited to them @ 9% instead of 10% p.a. The profits for the year before charging interest was Rs.2,50,000. Show your working notes clearly and pass the necessary adjustment entry.

[Ans.: Dr. Shyam’s Current A/c by Rs.200; Mohan A/c Rs.400 and Cr. Sohan’s current A/c Rs.600]