Accountancy Worksheet CLASS XII

                     Chapter : Fundamentals of Partnership

Q:1 A, B and C started a firm on 1^st Oct, 2017 sharing profits equally. A drew regularly Rs 4,000 in the beginning of every month for the six months ended 31^st March, 2018. B drew regularly Rs 4,000 at the end of every month for the six months 31^st March 2018. C drew regularly Rs 4,000 in the middle of every month for the six months ended 31^st March, 2018.

Calculate interest on drawings @ 5%p.a for the period ending 31^st March 2018.

Q:2 A, B and C are partners in a firm. Though there is no provision in the Partnership Deed for interest on capital, this has been provided to the accounts @5% p.a for the two years ended 31^st March, 2017 and 31^st March 2018. Their fixed capitals on which interest was calculated throughout were A Rs 50,000 B Rs 40,000 and C Rs 30,000. During the two years they shared profits as follows:

2016-17  5:3:2.

2017-18  2:2:1

You are required to pass an adjustment entry as at 1^st April, 2018.

Q:3 The capitals of X, Y and Z as on 31^st March 2018 amounted to Rs 1,50,000 Rs 5,50,000 and Rs 11,00,000 resp. the profits amounting to Rs 3,00,000 for the year 2017-18 were distributed in the ratio of 4:1:1 after allowing interest on capital @ 10% pa. During the year each partner withdrew Rs 50,000 per month in the beginning of each month. The Partnership Deed was silent as to profit sharing ratio and interest on drawings but provided for interest on capital @ 12% pa. Pas adjustment entry.

Q:4    A, B and C started business on July 1 2015. You find that:

i)             A drew Rs 8,000 in the beginning of every month for 9 months ending 31^st March 2016.

ii)            B drew Rs 8,000 at the end of every month for 9 months ending 31^st March 2016.

iii)           C drew Rs 8,000 every month for 9 months ending 31^st March 2016.

Calculate interest on drawings @ 10% p.a.

Q:5 A and B are partners sharing the profits and losses in the ratio of 3:2 with capitals of Rs 2,00,000 and Rs 1,00,000 resp. Show the distribution of profits in the following cases:

i)             If the partnership deed is silent as to interest on capital and the profits for the year are Rs 50,000.

ii)            If the partnership deed provides for interest on capital @ 8% p.a. and the losses for the year are Rs 50,000.

iii)           If the partnership deed provides for interest on capital @ 8% p.a. and the profits for the year are Rs 50,000.

iv)           If the partnership deed provides for interest on capital @ 8% p.a. and the losses for the year are Rs 15,000.

v)               If the partnership deed provides for interest on capital @ 8% p.a. even if it involves the firm in losses and the profit for the year are Rs 15,000.

Q:6 A and B entered into partnership with capitals of Rs4,00,000 and Rs 2,00,000 resp and agreed to share profits and losses in the ratio of 3:2. Their partnership deed provides that interest on capital shall be allowed at 6% p.a. and it is to be treated as a charge against profits. Prepare the relevant account to allocate the profit in the following cases:

i)             Profit for the year is Rs 80,000.

ii)            Profit for the year is Rs 20,000.

iii)           Loss for the year is Rs 20,000.

Q:7 Shikha and Fatima were partners in a firm sharing profits in the ratio of 5:3. Their fixed capitals on 1.4.2017 were : Shikha Rs 3,00,000 and Fatima Rs 4,00,000. They agreed to allow interest on capital @ 12% p.a and to charge on drawings @ 15% p.a. The profit of the firm for the year ended 31.3.2018 before all above adjustments were Rs 63,000. The drawings made by Shikha were Rs 10,000 and by Fatima Rs 20,000 during the year. Prepare Profit and Loss Appropriation A/c. The interest on capital will be allowed even if the firm incurs a loss.

Q:8 A, B and C started a business in partnership. A contributes Rs 50,000 for the whole year. B introduces Rs 40,000 at first and increased it to Rs 46,000 at the end of four months but withdraws Rs 16,000 at the end of 9 months. C invests Rs 80,000 at first but withdraws Rs 20,000 at the end of 5 months.

Firm earned a profit of Rs 23,750 during the year. You are required to show the division of profits on the basis of the effective capital employed by each partner during the year.

Q:9 X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. After the final accounts have been prepared, it was discovered that interest on drawings had not been taken into consideration. The interest on drawing of partners amounted to Rs X Rs 2,550, Y Rs 1,850 and Z Rs 1,000. Give the necessary adjusting journal entry.

Q:10 R and S were partners in a firm sharing profits in 3:2 ratio. Their resp fixed capitals were Rs 10,00,000 and Rs 15,00,000. The partnership deed provides the following:

i)             Interest on capital @ 10% p.a.

ii)            Interest on drawings @ 12% p.a.

During the year ended 31.3.2016, R’s drawings were Rs 10,000 per month drawn at the end of every month and S’s drawings were Rs 20,000 per month drawn in the beginning of every month. After the preparation of final accounts for the year ended 31.3.2016 it was discovered that interest on R’s drawings was not taken into consideration.

Calculate interest on R’s drawings and give necessary adjusting entry for the same.

Q:11 Praveen, Sahil and Riya are partners having fixed capitals of Rs 2,00,000, Rs 1,60,000 and Rs 1,20,000 respectively. They share profits in the ratio of 3:1:1. The Partnership Deed provided for the following which were not recorded in the books:

i)             Interest on Capital @5% p.a.

ii)            Salary to Praveen Rs 1,500 p.m. and to Riya Rs 1,000 p.m.

iii)           Transfer of profit to General Reserve Rs 10,000. Net profit for the year ended 31^st  March, 2015 distributed among the partners was Rs1,00,000.

Pass necessary rectifying entry for the above adjustments in the books of the firm.

Also show your working clearly.

Q:12 The partners of a firm distributed the profits for the year ended 31^st  March, 2016, Rs 90,000 in the ratio of 3:2:1 without providing for the following adjustments :

i)             A and B were entitled to a salary of Rs 1,500 each per annum.

ii)            B was entitled to a commission of Rs 4,500.

iii)           B and C had guaranteed a minimum profit of Rs 35,000 p.a. to A.

iv)           Profits were to be shared in the ratio of 3:3:2.

Pass necessary journal entry for the above adjustments in the book of the firm.