FUNDAMENTALS- PRACTICE QUESTIONS
Q:1 Interest on drawings to be charged from partners-
A- Rs 1,000; B Rs 2,000; C Rs 3,000.
Interest on drawings was ignored while preparing accounts.
Pass an adjusting journal entry to rectify.
Q:2 Dates Capital introduced Capital withdrawn
X Y X Y
1-1-2014 1,00,000 2,00,000
1-3-2014 20,000 - - 30,000
1-7-2014 20,000 1,00,000 -
1-10-2014 10,000 10,000
Calculate interest on capital @10% p.a.
Q:3 Drawings of A Rs 20,000 as on 1-7-2014. Accounting year ends on 31-12-2014.
Interest on drawings for the year is at the rate 7%. Calculate interest on drawings.
Q:4 Balance Sheet- Extract
31-12-2014
Liabilities Rs Assets Rs
Capital
A 10,00,000 Drawings A 20,000
B 8,00,000 B 40,000
P&L Appropriation 1,00,000
Additional capital introduced by A on 1-7-2014 was Rs 50,000 and capital withdrawn by B on 1-7-2014 was Rs 1,00,000. Profit during the year was Rs 1,50,000. Drawings made by B Rs 50,000.
Calculate interest on capital @ 10% p.a.
Q:5 Extract of Balance Sheet
Liabilities Rs Assets Rs
Capitals P& L( Dr bal) 50,000
A 2,00,000
B 4,00,000
Loss during the year was Rs 1,20,000.
Calculate interest on capital @ 10% p.a.
Profit sharing ratio between the partners was 3:2.
Q:6
Capitals
A 2,00,000 Advertisement suspense 20,000
B 1,00,000
Loss during the year Rs 50,000.
Calculate interest on capital @10% p.a
Q:7 Loss during the year Rs 30,000. Interest on loan to the partners A-1,500 & B -2,000.
In which account P& L or P& L Appropriation will distribution of loss be shown?
Q:8 Rent payable to a partner is a charge against profit or an appropriation of profit? Why?
Q:9 A and B share profits and losses in the ratio of 2:1 and as from 1-4-2014, they admit C who is to have 1/10th share of the profit with a guaranteed minimum of Rs 16,000. A and B continue to share profits as before. The profit for the year ended 31-3-2015 was Rs 1,00,000. Ignoring the above terms, the profit was divided equally between the partners. Give an adjustment entry to rectify.
Q:10 A and b were in partnership sharing profits and losses in the ratio of 3:2. In appreciation of services of C who was in receipt of a salary of Rs 24,000 p.a and a commission of 5% of net profit after charging such salary and commission, they took him into partnership on 1-4 2014 giving him 1/8th share profits. Any excess over his former remuneration to which C becomes entitled will be borne by A and B in the ratio of 2:3.
Ignoring the above terms the profit of the year Rs 4,44,000 was divided between the partners equally. . Give an adjustment entry to rectify.
Q:11 X, Y and Z entered into partnership on 1-7-2014 to share profits and losses in the ratio of 3:2:1. X personally guaranteed that Z’s share of profits after charging interest on capital @6 % p.a would not be less than Rs 36,000 p.a. The capital contributed by X Rs 2,00,000; Y Rs 1,00,000. Profit for the year ended on 31-3-2015 was 1,38,000. Prepare P & L Appropriation Account.
Q:12 A, B and C are partners having capitals of Rs 10,00,000; Rs 8,00,000 and Rs 6,00,000 respectively and sharing profits and losses equally. C is guaranteed a minimum profit of Rs 1,00,000 as share of profit every year. The firm incurred a loss of Rs 3,00,000 for the year ended 31-3-2015.
Show necessary accounts.
Q:13 The capitals of partners A, B and C at the end of the year were Rs 1,00,000; 2,00,000 and 3,00,000 respectively after considering the following-
i) Profits for the year was 60,000.
ii) Drawings during the year were Rs 1,000; 2,000 and 3,000 respectively by A, B and C.
iii) Salary to the partners A, B and C Rs 2,000; 4,000 and 6,000.
Interest on capital @ 2% p.a was provided to them ignored while calculating closing capital and also was not provided to the partners.
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