Q.1 What is the
status of partnership from an accounting viewpoint ?
Q.2 List the items that may appear on the debit side and credit
side of a partner's fluctuating capital account.
Q.3 Give two points of difference between Profit and Loss and
profit and loss appropriation A/c.
Q4. A, B and C are partners in a firm
having fixed capital of Rs. 80,000, Rs. 40,000 and Rs. 50,000 respectively
sharing profits as 7 : 6 : 4. The rate of interest on capital was agreed at 10%
p.a. but was wrongly credited to them @ 12% p.a. Give the necessary adjustment
entry to adjust the balance of partners capital a/c.
Q5. P, Q and R are partners with capitals of Rs. 40,000 , Rs.
30,000 and Rs. 20,000 respectively. The partnership deed provided the following
:
(1) R to get salary Rs. 2,000 p.a.
(2) Q to get commission Rs. 1,500
(3) P’s loan Rs. 20,000 @ 6% p.a.
(4) Drawings of partners were : P : Rs. 5,000 ; Q : Rs. 4,000 and
R : Rs. 3,000
(5) Profit sharing ration 2 : 1 : 1
The profits for the year ended 31st
December 2008 without taking the above facts amounted to Rs. 12,700.
Prepare Profit & Loss Appropriation
A/c and Partners’ capital a/c.
Q6. Which of
the following statements will be applicable to Partnership firm in the absence
of Partnership deed? (Any one of the following).
i) Salary allowed to a partner for extra
work done.
ii) Interest on capital of partners will
be 5% p.a.
iii) Interest on partner’s loan @ 6%
p.a.
iv) Profit
sharing ratio.
Q.7. A and B entered into partnership on 1st April,
2010 without any partnership deed. They
introduced capitals of Rs. 5, 00,000 and Rs. 3,
00,000 respectively. On 31st October, 2010, A advanced Rs. 2, 00,000 by way of
loan to the firm without any agreement as to interest. The Profit and Loss
Account for the year ended 31032011 showed a profit of Rs. 4, 30,000 but the
partners could not agree upon the amount of interest on loan to be charged and
the basis of division of profits. Pass a Journal Entry for the distribution of
the Profits between the partners and prepare the Capital A/cs of both the
partners and Loan A/ c of ‘A’.
Q8.Manoj Sahil and Dipankar are partners in a firm
sharing profits and losses equally. They have omitted interest on Capital @10%
per annum for three years ended on 31st March, 2011. Their fixed Capital on
which interest was to be calculated throughout the were :
Manoj Rs.3,00,000
Sahil Rs.2,00,000
Dipankar Rs.1,00,000
Give the
necessary adjusting journal entry with working notes.
Q9. A, Band C are partners with fixed capitals of
Rs. 2,00,000, Rs. 1,50,000 and Rs. 1,00,000 respectively. The balance of
current accounts on 1st January, 2004 were A Rs. 10,000 (Cr.); B Rs. 4,000
(Cr.) and C Rs. 3,000 (Dr.). A gave a loan to the firm of Rs. 25,000 on 1st
July, 2014. The Partnership deed provided for the following:-
(i) Interest on Capital at 6%.
(ii) Interest on drawings at 9%. Each partner drew
Rs. 12,000 on 1st July, 2014.
(iii) Rs. 25,000 is to be transferred in a Reserve
Account.
(iv)
Profit sharing ratio is 5:3:2 upto Rs. 80,000 and above Rs. 80,000 equally.
Net Profit of
the firm before above adjustments was Rs. 1,98,360.
From the
above information prepare Profit and Loss Appropriation Account, Capital and
Current Accounts of the partners.
Q10. A and B were partners in a firm sharing profits
and losses in the ratio of 3:2. They admit
C for 1/6th share in profits and guaranteed that his
share of profits will not be less then Rs.
25,000. Total profits of the firm were Rs. 90,000.
Calculate share of profits for each
partner when:
1. Guarantee is given by firm.
2. Guarantee is given by A
3.
Guarantee is given by A and B equally.
