Subject - Accountancy (005)

Class XII (2024-2025)

S. Accounting for Partnership firm and Companies Marks

no Part – A
1 Which one is not the feature of Partnership? 1
A. Sharing of profit
B. Limited liability
C. Two or more than two person
D. Agreement
2 In the absence of any agreement, profit and loss of the firm are shared_______. 1
A. In capital ratio
B. In different proportion
C. Equally
D. None of the above
3 Profit and loss appropriation account is prepared to ______. 1
A. Find out net profit
B. Find out divisible profit
C. Create a reserve fund
D. None of the above
4 Which accounts are opened when the capitals are fixed? 1
A. Only current accounts
B. Liability accounts
C. Capital and current accounts
D. Only capital accounts
5 Pick the item which is not included in the Partnership deed 1
A. Profit and loss sharing ratio
B. Salaries, commission, etc, if payable to any partner
C. Accounting period of the firm
D. Date of expulsion of partner
6 Mansoor and Reshma who are partners in a firm and the capitals are Rs.2,00,000 and 1
Rs. 1,50,000 on April 1,2016 repectively. Mansoor introduced additional capital of Rs.
1,00,000on August 1,2016. Calculate interest on capital @6% PA of both the partners.
A. Mansoor - 16,000, Reshma – 9,000
B. Mansoor – 2,0000, Reshma – 15,000
C. Mansoor – 16,000, Reshma – 13500
D. Mansoor – 18,000, Reshma – 9,000
7 Abdul, partner of ABC ltd withdraw money during year ending march 1,2017 from his 1
capital, for his personal use. If he withdrew Rs. 3,000 per month at the begging of the
month. Rate of interest is 9 percent PM. What will be the interest on drawing?
A. 2,000
B. 1,755
C. 1,550
D. 2,755
8 Interest on partners loan is credited to 1
A. Partner’s fixed Capital A/c
B. Partner’s current A/c
C. Partner’s loan A/c
D. Partner’s Drawings A/c
9 Annu, Banu and Chanu are partners, Chanu has been given a guarantee of minimum 1
profit of ₹8,000 by the firm. Firm suffered a loss of ₹5,000 during the year. Capital
account ofBanu will be ________ by₹_________.
A. Credited, 6,500.
B. Debited, 6,500.
 C. Credited, 1,500.
D. Debited, 1,500.
10 Fill the journal entries of interest on Capital: 1
For Allowing interest
Interest on capital A/c dr xxxx
To _________________ xxxx

A. Partner’s capital/current A/c (individually)

B. Profit and loss appropriation A/c
C. Partner’s Drawings A/c
D. None of the above
11 Das and Sinha are partners in a firm sharing profits in 4:1 ratio. They admitted Pal as a 1
new partner for 1/4 share in the profits, which he acquired wholly from Das.
Determine the new profit sharing ratio of the partners.
A. 4:11:5
B. 11:4:5
C. 10:7:4
D. None of the Above
12 Amar and Bahadur are partners in a firm sharing profits in the ratio of 3:2. They 1
admitted Mary as a new partner for 1/4 share. The new profit sharing ratio between
Amar and Bahadur will be 2:1. Calculate their sacrificing ratio.
A. 5:6
B. 3:2
C. 1:4
D. 2:3
13 A Goodwill account is a _______. 1
A. Current account
B. Wasting account
C. Intangible account
D. Fictitious account.
14 The goodwill of the firm is not affected by _____. 1
A. The reputation of the firm
B. Better customer service
C. None of the options are correct
D. Location of the firm
15 At the time of admission of a new partner, undistributed profits appearing in the 1
balance sheet of the old firm is transferred to the capital account of _____.
A. Old partners in new profit-sharing ratio
B. All the partners in the new profit-sharing ratio
C. Old partners in the old profit-sharing ratio
D. None of the above
16 Identify the Wrong statement: 1
A. In Partnership firm, there is no limit for maximum number of partner.
B. When two or more persons join hands to set up a business and share its profits
and losses, they are said to be in partnership.
C. The clauses of partnership deed can be altered with the consent of all the
partners
D. All transactions relating to partners of the firm are recorded in the books of
the firm through their capital accounts
17 A and B were partners in a firm sharing profits and losses in the ratio of 3:2. Aney 1
admit C into the partnership with 1/6 share in the profits. Calculate the new profit
sharing ratio?
 A. 1:4:3
B. 3:2:1
C. 1:2:3
D. 2:5:1
18 Compute the value of goodwill on the basis of four year’s purchase of the average 1
profits based on the last five years? The profits for the last five years were as follows:
Rs
2013 40,000
2014 50,000
2015 60,000
2016 50,000
2017 60,000
A. 1,20,000
B. 1,50,000
C. 2,00,000
D. 2,08,000
19 The excess amount which the firm can get on selling its assets over and above the 1
saleable value of its assets is called
A. Surplus
B. Super Profit
C. Reserve
D. Goodwill
204. If a change in partner’s association initiates a formation of a new agreement it is 1
known as
A. The realization of partnership.
B. Revaluation of partnership.
C. Reconstitution of partnership.
D. None of the above.

Part – B
21 Hari, Vedha and Madhu set up a partnership firm on April 1, 2019. They contributed 3
Rs. 50,000, Rs. 40,000 and Rs. 30,000, respectively as their capitals and agreed to
share profits and losses in the ratio of 3:2:1. Hari is to be paid a salary of Rs. 1,000 per
month and Vedha, a Commission of Rs. 5.000. It is also provided that interest to be
allowed on capital at 6% p.a. The drawings for the year were Hari Rs. 6,000, Vedha
Rs. 4,000 and Madhu Rs. 2,000. Interest on drawings of Rs. 270 was charged on Hari's
and Madhu Rs. 2.000. Interest on drawings and Rs. 90, on Madhu's drawings. The net
profit as per Profit and Loss Account for the year ending March 31, 2020 was Rs.
35,660. Prepare the Profit and Loss Appropriation Account to show the distribution of
profit among the partners.
22 Arthi and Mala are partners in a firm. Their capital accounts as on April 01. 2016 3
showed a balance of Rs. 2,00,000 and Rs. 3.00.000 respectively. On July 01, 2016,
Arthi introduced additional capital of Rs. 50,000 and Mala, Rs. 60,000. On October
01 Arthi withdrew Rs. 30,000, and on January 01, 2016 Mala withdraw, Rs. 15,000
from their capitals. Interest is allowed @ 8% p.a. Calculate interest payable on capital
to both the partners during the financial year 2016-2017.
23 Mohit and Rohan share profits and losses in the ratio of 2:1. They admit Rahul as 3
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.
24 Answer any one question: 3
(a) X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3: 2 : 1,
respectively. Z’s share in the profit is guaranteed by X and Y to be a minimum of Rs
8,000. The net profit for the year ended March 31, 2017, was Rs 30,000. Prepare
Profit and Loss Appropriation Account, indicating the amount finally due to each
partner.
(or)
(b)On March 31, 2017, after the close of books of accounts, the capital accounts of
Ram, Shyam and Mohan showed balance of Rs 24,000 Rs 18,000 and Rs 12,000,
respectively. It was later discovered that interest on capital @ 5% had been omitted.
The profit for the year ended March 31, 2017, amounted to Rs 36,000 and the
partner’s drawings had been Ram, Rs 3,600; Shyam, Rs 4,500 and Mohan, Rs 2,700.
The profit-sharing ratio of Ram, Shyam and Mohan was 3:2:1. Calculate interest on
capital.
25 Discuss the methods of valuation of Goodwill. 3
26 Answer both questions: 3
i. P and Q are partners sharing profits in 2:1 ratio. They admitted R into partnership
giving him 1/5 share which he acquired from P and Q in 1:2 ratio. Calculate new
profit sharing ratio?
ii. X and Y are partners sharing profits in 5:3 ratio admitted Z for 1/10 share which
he acquired equally for X and Y. Calculate new profit sharing ratio?
Part – C
27 Write down the factors which affect goodwill of the firm. 4
28 Answer all the question: 4
i. Anil and Vishal are partners sharing profits in the ratio of 3:2. They admitted
Sumit as a new partner for 1/5 share in the future profits of the firm. Calculate
new profit sharing ratio of Anil, Vishal and Sumit.
ii. Anshu and Nitu are partners sharing profits in the ratio of 3:2. They admitted Jyoti
as a new partner for 3/10 share which she acquired 2/10 from Anshu and 1/10
from Nitu. Calculate the new profit sharing ratio of Anshu, Nitu and Jyoti.
iii. Rohit and Mohit are partners in a firm sharing profits in the ratio of 5:3. They
admit Bijoy as a new partner for 1/7 share in the profit. The new profit sharing
ratio will be 4:2:1. Calculate the sacrificing ratio of Rohit and Mohit.
iv. Ramesh and Suresh are partners in a firm sharing profits in the ratio of 4:3. They
admitted Mohan as a new partner. The profit sharing ratio of Ramesh, Suresh and
Mohan will be 2:3:1. Calculate the gain or sacrifice of old partner.
29 i. Firm’s Capital in a business is Rs. 2,00,000. The normal rate of return on firm’s 4
capital is 15%. During the year 2015 the firm earned a profit of Rs. 48,000.
Calculate goodwill on the basis of 3 years purchase of super profit?
ii. A business has earned average profits of Rs. 1,00,000 during the last few years.
Find out the value of goodwill by capitalisation method, given that the assets of
the business are Rs. 10,00,000 and its external liabilities are Rs. 1,80,000. The
normal rate of return is 10%?
30 Lokesh and Azad are partners sharing profits in the ratio 3:2, with capitals of Rs. 4
50,000 and 30,000, respectively. Interest on capital is agreed to be paid @ 6% p.a.
Azad is allowed a salary of Rs. 2,500 p.a. During 2016, the profits prior to the
calculation of interest on capital but after charging Azad’s salary amounted to Rs.
12,500. A provision of 5% of profits is to be made in respect of manager’s
commission. Prepare partner’s capital accounts and profit and loss Appropriation
Account.
31 Harshad and Dhiman are in partnership since April 01, 2019. No Partnership 4
 agreement was made. They contributed Rs. 4,00,000 and 1,00,000 respectively as
capital. In addition, Harshad advanced an amount of Rs. 1,00,000 to the firm, on
October 01, 2019. Due to long illness, Harshad could not participate in business
activities from August 1, to September 30, 2016. The profits for the year ended
March 31, 2020 amounted to Rs. 1,80,000. Dispute has arisen between Harshad and
Dhiman.
Harshad Claims:
(i) he should be given interest @ 10% per annum on capital and loan;
(ii) Profit should be distributed in proportion of capital;
Dhiman Claims:
(i) Profits should be distributed equally;
(ii) He should be allowed Rs. 2,000 p.m. as remuneration for the period he
managed the business, in the absence of Harshad;
(iii) Interest on Capital and loan should be allowed @ 6% p.a.
You are required to settle the dispute between Harshad and Dhiman. Also prepare
Profit and Loss Appropriation Account
32 Answer any one question: 4
(a)Compute the value of goodwill on the basis of four years’ purchase of the average
profits based on the last five years? The profits for the last five years were as follows:
Rs
2015 40,000
2016 50,000
2017 60,000
2018 50,000
2019 60,000
(or)
(b)Ram, Raj and George are partners sharing profits in the ratio 5: 3 : 2. According to
the partnership agreement George is to get a minimum amount of Rs 10,000 as his
share of profits every year. The net profit for the year 2013 amounted to Rs 40,000.
Prepare the Profit and Loss Appropriation Account
Part – D
33 Simmi and Sonu are partners in a firm, sharing profits and losses in the ratio of 3:1. 6
The profit and loss account of the firm for the year ending March 31, 2020 shows a
net profit of Rs. 1,50,050. Prepare the Profit and Loss Appropriation Account and
partners current account by taking into consideration the following information:
(i) Partners capital on April 1, 2019 Simmi, Rs. 30,000; Sonu, Rs. 60,000;
(ii) Current accounts balances on April 1, 2019 Simmi, Rs. 30,000 (cr.); Sonu, Rs.
15,000 (cr.)
(iii) Partners drawings during the year amounted to Simmi, Rs. 20,000; Sonu, Rs.
15,000
(iv) Interest on capital was allowed @ 5% p.a.
(v) Interest on drawing was to be charged @ 6% p.a. at an average of six months
(vi) Partners’ salaries : Simmi Rs. 12,000 and Sonu Rs. 9,000
34 On March 31, 2017, the balance in the capital accounts of Eluin, Monu and Ahmed, 6
after making adjustments for profits, drawing, etc; were Rs 80,000, Rs 60,000 and Rs
40,000 respectively. Subsequently, it was discovered that interest on capital and
interest on drawings had been omitted. The partners were entitled to interest on
capital @ 5% p.a. The drawings during the year were Eluin Rs 20,000; Monu, Rs
15,000 and Ahmed, Rs 9,000. Interest on drawings chargeable to partners were Eluin
Rs 500, Monu Rs 360 and Ahmed Rs 200. The net profit during the year amounted to
Rs 1,20,000. The profitsharing ratio was 3: 2: 1. Pass necessary adjustment entries.
35 Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 6
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.