Multipl No. of Questions : 35 jon Each of the question 9! /Choices for answer, out ‘of which ONLY con with each options ‘is no penalty f0F I! Direct Options’ ‘A response box is giv’ you will gett mark, while ther tnership deed should be properly ined as per the provisions 1. The p vibly registered witht drafted and preps of the and pr the (a) Indian Companies (p) Indian Partnership Act, 1932, + partnership Act, 1932, Registrar af Registrar of Firms (c) Stamp Act, Registrar of Cs 1, Registrar of Firms ompanies oo0a (p) Stamp Act 2, Which of the following is not a feature of partnership? (a) Atleast 2 persons () Agreement between partners [© Maximum number of partners are 50 2s per Indian Partnership Act, 1932 (p) Mutual agency oo oo 3, A, Band C are in partnership business. ‘A used % 2,00,000 belonging to the firm without informing to other partners and made a profit of € 35,000 by using this dimount. Which decision should be taken by the firm to rectify this situation? -d to return only & 2,00,000 to the (a) Annee firm a (B) Ais required to return & 35,000 to the firm o () Ais required to pay back & 35,000 only a equally to B and C (p) Aneed to return & 2,35,000 to the firm 4, Inthe absence of deed, partners are entitled to ; (i) profit share in capital ratio e Choice Ques 5. tions Suggested Time : 55 .Q) Le. there are Four “ i" wy have t0 golect the Correct option, cx option: FF eBCH COFWE ay, fed out question® m making additional si nid advances by they, tion (MCI ymmission fo! p loan a} apital g 4 Pick the odd one out (A) Rent to partner (p) Manager's comm! (c) Interest on partner's loa (p) Salary to partner jission ooo0 p of the Ina partnership firm, which in respect of following statements is true liability of a partner? (A) Itis limited to the extent of his capita contribution (B) Itis limited to the extent of debit b in his capital account, if any (C) Itis unlimited only for the acts don her/him as a partner (D) His unlimited jointly and severally the acts of the firm done while he is # Partner 6 by Which of the following is correct?” (i) Under fixed capital account interest * capital is not allowed. (ii) Under fixed capital account, capita" partners fluctuate a:‘Accounting for Partnership Firm: Fundamentals (iit) Under fixed capital account, only capital introduce or capital withdrawn affect the capital. (iv) Under fixed capital account, salary of partners is not shown, Codes (a) Only Gi) (©) Gii) and (ivy 1D (B) (and (ivy a OD) @.Giand ivy) 8, A. Band C are partners in the firm sharing profits in the ratio of & 5 : 3 : 2. If B's share of profit at the end of the year amounted to 8 1,50,000, what will be A's share of profit? (A) ¥1,50,000 (B) %2,50,000 (©) ¥ 3,00,000 (D) %5,00,000 oooo 9. Anil and Vimal are partners in a firm sharing profits and losses in the ratio of 3:2, Sunil, manager of a firm, receives salary of % 20,000 in addition to commission of 10% on net profit after charging such commission. Total remuneration to Sunil is, © 70,000. What was the profit for the year before charging salary and commission? (a) ©5,50,000 O (B) %4,70,000 Oo (C) %6,30,000 0 (D) %5,00,000 a 10, Xand Y are partners sharing profits and losses in the ratio 3 : 2 with capitals of 2 1,50,000 and & 1,00,000 respectively. They are allowed 6% p.a. interest on capital and charged 6% interest on drawings of each partner. Interest on drawings calculated as % 3,000 and @ 2,000. Y's share of profit as per profit and loss appropriation account is % 20,000. Net profit earned during the year before any appropriation was (A) 865,000 (8) % 60,000 (©) €55,000 (D) 50,000 1. Kanha, Resham and Nisha were partners in a firm. Nisha had given a loan of @ 1,00,000 to the firm @ 10% p.a oo0o0oo0 12. 13, 14. The accountant of the firm is emphasising that interest on loan will be paid @ 6% p. ‘At what rate the interest on loan will be paid to Nisha? ese 2024) (A) 6% pa a (B) 10% pa. o (C) 8% pa, a (D) No interest on loan will be paid a After doing the adjustments regarding drawings ® 40,000, share of profit & 24,000 and the additional capital introduced % 32,000, the capital of Ashok, a partner, as on 31st March, 2022 was ® 5,00,000. His capital as on Ist April, 2021 was .. (a) 8484000 (B) &5,16,000 a (©) 8446000 (D) 85,96,000 oO Which of the following is not correct? (i Interest on drawings @ 6% p.a. on total drawings of & 10,000 will be % 600. (ii) Interest on drawings @ 6% p.a on drawings of & 1,000 on beginning of every month will be & 390, (iii) Interest on drawings @ 6% p.a. on drawings of & 1,000 at the end of every month will be ¥ 330. (iv) Interest on drawings @ 6% on drawings of & 10,000 will be & 600, Codes (a) Only () (B) Only (iv) (©) @, Gi) and (ii) (D) Gi), Gi) and (iv) oooa Vanya and Aanya were partners in a firm sharing profits and losses in the ratio of 3: 2. Their capitals were & 5,00,000 and % 1,00,000 respectively. Vanya was entitled to interest on capital @ 8% p.a. and Aanya was entitled to salary @ % 5,000 per month, The net profit before any appropriation was @1,75,000. Vanya's share in divisible profit will be ICBSE 2024) A) 45,000 O_(B) % 30,000 o c) €37,500 1 (D) 8 40,000 Oo15. 16. 7 18. Omkar and Shiva were partners in a firm. Omkar was entitled to a salary of % 20,000 p.a. while Shiva was entitled to a salary of 250,000 p.a. Net profit for the year ended 31st March, 2023 after charging salary of Omkar and Shiva was %5,60,000. The total amount credited to Omkar's capital account will be (CBSE 2024) (A) &2,45,000 D (8) 22,65,000 Oo C) %3.15,000 O (b) 2 3,00,000 a A. and B were partners in a firm. Their capitals at the end of the year were ¥ 3,00,000 and @ 1,50,000 respectively. During the year B withdrew @ 10,000. Profit for the year was @ 32,000. Calculate B's ‘opening capital. (A) 8 1,28,000 (B) © 1,44,000 (©) 8 1,08,000 (D) ¥1,24,000 oooo X and Y are partners sharing profits and losses in the ratio of 3:2. Their capitals are % 2,00,000 and @ 1,00,000 respectively. Interest on capital is allowed @8% p.a. Firm earned a profit of % 15,000 for the year ended 31st March, 2024. Interest on capitals will be (A) % 16,000, ¥ 8,000 (B) © 9,000, ® 6,000 (©) 8 10,000, ® 5,000 (D) 27,500, % 7,500 oo0o00 Arun and Varun are partners in a firm and sharing the profits and losses in the ratio of 2: 3 with a capital of ® 1,00,000 and % 80,000 respectively. Calculate the amount of profit and loss to be distributed among the partners if partnership deed provides interest on capital (charge) @ 10% p.a. and loss for the year is € 52,000. Loss distributed among the partners are (A) X=8 20,800, ¥ = 31,200 a bi) X=8 28,000, ¥ = & 42,000 a ©) X=2 42,000, ¥ = 2 28,000 o b) X=8 31,200, ¥ = & 20,800 ao 19. A drew € 10,000 on Ist da 20. 22. checkmate RCCOUNTANCY case cn, Q ¥ Of every gus the number 2 eS will be chargeg for 9 months. Calculate months for which inte (A) 5 months. (B) 6 months (©) 7.5 months (D) 4.5 months oo000 Calculate rate of interest, if a partne, £2,000 atthe end of every mena ne interest on drawings calculated is 6ey (A) 10%pa. OF (B) 6% pa (©) 8% pa O wD s%pa q 21. A, Band C are partners, their partnersh deed provides for interest on drawings a. 8% p.a. B withdrew a fixed amount in the middle of every month and his interest og drawings amounted to ® 4,800 at the end of the year. What was the amount of monthly drawings? (a) €5,000 a (©) 248,000 = Ravi, Mohan and Raju are partners sharing profits and losses in the ratio of 5 : 3 : 2 Their capitals were % 5,00,000, % 3,00,000 and & 2,00,000 respectively. Interest on capital was allowed at 6% p.a and salary of each partner is % 10,000 per quarter. Firm earned a profit of % 80,000. Calculate the ratio in which profits were distributed. (A) 53:2 (B) Vets (C) 35:30:15 (D) 35:29: 26 (8) © 10,000 oO (D) 81,20,000 g ooa0 23. Manoj and Ravi are partners in a firm sharing profits and losses equally. Their fixed capitals were @ 1,00,000 and % 50.000 respectively. The deed provides for interes on capital @ 10% p.a but it was wrong! credited by 8% p.a. In adjustment ent (A) Manoj's capital account will be debited (B) Manoj's current account will be debitee C) Ravi’s capital account will be debited, D) Ravi’s current account will be debi anna24. A, Band C are 25. 26. 27. Partners in the ratio of 4:32. Salary to.A® 15,000 and toc % 3,000 omitted to be recorded. For rectification, X will be (A) credited with ® 7,000 (B) credited with % 15,000 (C) debited with ? 7,000 (D) debited with & 15,000 oooagd Ajay and Vinod are partners in the ratio of 3: 2. Their fixed capital were 3,00,000 and © 4,00,000 respectively. After the close of accounts for the year it was observed that the interest on capital which was agreed to be provided at 5% p.a. was erroneously provided at 10% p.a. By what amount will Ajay's account be affected if partners decide to pass an adjustment entry for the same? (A) Ajay’s current account will be debited by @ 15,000 a (B) Ajay's current account will be credited by 26,000 a (©) Ajay's current account will be credited by © 35,000 o (D) Ajay's current account will be debited by 20,000 o A, Band C are partners, C has been given a guarantee of minimum profit of € 8,000 by the firm, Firm suffered a loss of 5,000 during the year. Capital of B will be .... by (A) credited, % 6,500 (B) debited, & 6,500 (C) eredited, ® 1,500 (D) debited, % 1,500 A and B are partners in a firm sharing profits and losses in the ratio 3 : 2. On Ist July, C join the firm for 1/6th share in profit. Cis given a guarantee of minimum profit of % 12,000 during the year. Profit for the year ended 31st March, 2024 amounted to % 48,000. oooao 28. 29. 30, Deficiency met by A and B will be (A) A-® 2,400, B-® 1,600 (B) A-® 600, B-% 400 (C) A-2 7,200, B-% 4,800 (D) A-% 2,000, B-% 2,000 Choose the correct sequence related to guarantee of partners. (i) Guarantee by partner to partner Gi) Guarantee by firm to partner (iii) Guarantee by partners to firm (iv) Transfer of net profit to profit and loss appropriation account Codes A @, Giid, Gv), (i) (B) (iv), Gi), Gi), ©) Gi, Gid, Gv), @ (D) Gi), @, GH, Civ) X, Y and Z are partners in a firm sharing profits and losses in the ratio of 6 : 4 : 1. X guaranteed a profit of % 15,000 to Z. The net profit for the year ending 31st March, 2019 was % 99,000. X's share in the profit of the firm will be (A) & 30,000 (B) & 15,000 (©) 848,000 (D) & 45,000 ooog oooo oooo0 E, F and G are partners sharing profits in the ratio of 3 : 3 : 2. According to the partnership agreement, G is to get a minimum amount of € 80,000 as his share of profits every year and any deficiency on this account is to be personally borne by E. The net profit for the year ended 31st March, 2021 amounted to % 3,12,000. Calculate the amount of deficiency to be borne by E. (A) % 1,000 (B) & 4,000 (C) & 8,000 (D) & 2,000 oo00031. Which of the following statements are correct? (i) The liability of a partner for acts of the firm is unlimited. Gi) Private assets of a partner can also be used for paying the debts of the firm Gi) Each partner is liable jointly with all other partners and also severally to the third parties for all the acts of the firm done, while he is partner. (iv) The liability of partner is limited to the extent of his capital contribution. Codes (%) (i) and Gili) ‘B) (i) and (ii) (©) Gi), Gi) and (iii) (D) (i), Gi), Gi) and (iv) oooo 32. Match the Column I with Column IT in the following information (ii). Revenue to the firm C._tinrest om drawings ‘Codes A BC A Gi) GD @ © Ww @w di) O ABC o (8) di) (i) Gili) Oo O@ @ @ oO 33. Match the Column I with Column II in the following information —__ a Columt ss & A. Maximum partners (1) Consent of all partners prescribed by goverment B. Partnership deed is Gi) 50 also known as )- Amicles of partnership “C Maximum partners 3s pet Indian Companies het 2013 - Admission of partner (8) 100 neh, KECOUNTANGY BSE Cag, 35. Codes ape D & av ai @ aD Ba aida 0 ow @ Gd Gi D) way a ay? GD Match the following. if interest on draw is calculated @ 8% pa Columat Come A drew £3,000 at the ead of each quarter for 9 months B. Adrew € 3,000 at the Degmaaumg of (1m) 180 ‘each quarter CA drew © 3.000 at the Degunmung of (un) 360 each half year 6 Codes a BC & a @ Gid B) a Gi id © @ Gi @ D ji @ a Match the Column [ with Column 11 in the following information Cohama tt (0) Debit side of peodit ant Jess account B_ Inmereston drawings (i) Debit side of profit ant Jos appropeatioe 2s Columa 1 A. Ioterest on capital C._ Interest on parmer's (itt) Credit sae of pent and oan Joss apprapnance aot Codes A BC © Gi Gi @ ) i) Gi Gi) © Gd Ww Gin (P) @ GdAssertion-Reason Questions Jo. of Questions :@ ‘Suggested Time : 15 Minutes irecti i rection Each of the question given below consist of the two statements; one labelled as Assertion (A) ind other as Reason (R). List of common options applicable for each question is given below. (A) Both Assertion (A) and Reason (R) are true and Reason (A) is the correct explanation of Assertion (A) (B) Both Assertion (A) and Reason (R) are true, but Reason (A) is not the correct explanation of Assertion (A) (C) Assertion (A) is true, but Reason (R) is false (0) Assertion (A) is false, but Reason (A) is true ‘ou have to select the codes as A, 8, C or D as your answer to the question by marking (¥) in the response ix given against each option. Assertion (A) Batman, a partner in a firm Reason (R) Interest on drawings will be with four partners, has advanced a loan of, charged for 6.5 months. 250,000 to the firm for last six months of wo @o oo wo the financial year without any agreement. A manne pE nie ks He claims an interest on loan of & 3,000 despite the firm being in loss for the year. Reason (R) [n the absence of any agreement/ partner in case of loss to firm, although he is devoting more time than other partners. provision in the deed, provision of Indian Reason (R) Salary to partner is an approp- Partnership Act, 1932 would apply. riation of profit and not a charge against wo @oo oo oD Profit. amo wo oO mo 6. Assertion (A) Under the fixed capital the ‘method, partners’ capital accounts always 2, Assertion (A) A minor cannot be admitted in a firm as a partner. Reason (R) A minor can participat profits of a firm. show a credit balance. ao @o ©o oOo Reason (R) Under the fixed capital method, ann ee eee all items like share of profit or loss, interest . Asse and B are partners reaniialasaeingat cr mean any deed, A had advanced a loan of 710,000. eect ae grate account called AAt the end of the year, both agreed to allow earner cuneate sont er interest on loan @ 9% p.a. Reason (R) In the absence of deed, interest on loan is to be allowed @ 6% p.a. 7. Assertion (A) Commission provided to wo @oo oo oO partner is shown in profit and loss appropriation account ao @®o oo mo 4, Assertion (A) A and B are partners in a firm. Interest on drawings to be charged at 6% Reason (R) Commission provided to partner p.a. A drew & 1,000 per month at the is charge against profits and is to be beginning of every month, At the end of provided at fixed rate. year, firm incurred a loss of € 16,000, hence no interest will be charged on drawings. ao oo oOo wa8 cpeck@@#® BECOUNTANCY cise, ) Transfer to reserves i 8. Assertion (A) The fixed capital account 9. Assertion (A) Tran’ is balance of a partner may change due to shawn in profit and loss appropriation, additional capital introduced or capital account withdrawn or both, during the year Reason (R) Reserves are charge againg 4, Reason (R) Under fixed capital method, the fi Reason profits partner's capital accounts balance always Bo wo ae remains same oo wo oo wo oo re) Correct/Incorrect Statements No. of Questions : 9 Suggested 1: 15 Minute Direction Each of the question given below consist of the two statements. List of common options applicable for each question is given below. (A) Both statements are correct (B) Statement | is correct and Statement Ilis incorrect (C) Statement Il is correct and Statement lis incorrect (D) Both statements are incorrect You have to select the codes as A,B, C or D as your answer to the question by marking (V7) in the response box given against each option, 1, Statement I In the absence of deed, the 4, Statement I No interest on capital will be provisions of Partnership Act, 1932 will allowed, if deed is silent about interest on apply. capital. Statement II In partnership firm, maximum Statement II No interest on capital will be number of partners will be 50 as per Rule allowed in case of loss. 10 of the Companies Rules, 2014. wa wo w~o @®o © wa oo mo 2. Statement I Fixed capital account can never 5, Statement 1 Drawings against profit means show a negative balance. drawings by a partner against his expected Statement II Fluctuating capital account share of profit for the year. always shows a positive balance. Statement II Such drawings are debited to ao wo oo mo Partner's capital account. 3. Statement I Interest on loan by partner is “™o @®oO oo mo debited to profit and loss appropriation 6. Statement I In the absence of deed, ifa account, Partner is devoting more time than other Statement IT Interest on loan to a partner is Partners, he is entitled to get a salary. credited to profit and loss appropriation Statement IT Salary to partner is an account. appropriation of profit. wo @o oda oo “”o wo oo wo.ccounting for Partnership Firm: Fundamentals 7, Statement I Profit and Loss Appropriation wo @o ‘Account is prepared to distribute the net oo woo profit of the firm among its partners. Statement II Profit and Loss Appropriation ‘Account does not follow the concept of matching principle wo oo oo wo Statement 1 Each partner is liable dually and collectively with all other ners to the third party for all the acts of Statement I To participate in the 8, Statement I The mamixum number of artners as per The i artnet c y pariner sper The Indian Priership At the firm, while he is a partner Statement IT Central government has prese wo @o ribed maximum number of parnters to be 50. oo mo Case Based Questions Suggested Time : 10 Minutes No. of Questions Direction This section contains 2 cases having 2 questions of 1 mark each. You have to write the answer of ‘each question based on the context of the related case. Case 1 Puneet and Raju are partners in a clay toys making firm. Their capitals were 75.00.00 and ® 10,00,000 respectively. The firm allowed Puneet to get a commission of 109% on the net profit before charging any commission and Raju to get a commission of 10% of net profit tater charging all commissions. Following isthe profit and loss appropriation account for the year ending 31st March, 2022. Profit and Loss Appropriation Account Dr for the year ending 31st March, 2022 cr Particulars Amt (8) Particulars Amt (®) To Puneet’s Capital A/c (commission) 44,000. By Profit & Loss Ale (60. 19/100) To Raju's Capital Alc (Commission) To Profit transferred to Puneet’s Capital A/c Raju’s Capital A/c Questions (i) Raju’s commission will be (a) t40.000 O (B) 244,000 OO (©) %36,000 O (0) 236.440 O (ii) Puneet's share of profit will be (a) t1,80,000 Q(B) 71.44.00 (C) 82,16,000 — (b) @1.60,000 0Case 2 Aditi and Saurabh were partners in appropriation, the firm earned a net pro! According to the partnership deed, interest on capi Questions (0) Interest on capital will be provided to Aditi and Saurabh in which of the following ratio? S34 a Wott ao (B) 2:1 a (D) 8:1 a Subjective Questions Free Response Questions, Open-ended Questions ec. No. of Questions : 8 1. L,M, Nand O were partners in a firm sharing profits in 2: 1. They do not have partnership deed and following dispute had arised among them. Suggest proper remedy for the following (i) L is an active partner and carry on all the business almost alone. So he demanded incentive of ® 40,000 annually for the above services. But other partners have objection onit. (ii) M had advanced € 20,000 as loan to the firm and agreed to take interest @ 5% p.a. to which others have no objection but Chartered Accountant of the firm insist on 6% pa. (iii) N bring order of © 10,00,000 to the firm and charged 1% commission from firm for the given order. O opposed it, but other partners not. (iv) O wants to bring his son P into business as, a new partner. a firm sharing profi Or ectively. Before any Ist April, 2022, their capitals were © 5,00,000 and oe the year ended 31st March, 29), coeckmat&. ACCOUNTANCY Oa, ts and losses in the ratio of 2 oo jaus to be provided @ 10% Pia. ca. (ii) Interest on Aditi’s capital will be (a) € 50,000 (B) 45,000 (c) © 40,500 (D) 8 54,000 Suggested Time : 60 Min Land M agrees on it but N does not azr: O suggest that new partner can be admitted as majority is in his favour. 2. P.Qand Rare partners with capital balance of ¥ 1,00,000, & 40,000 and ¥ 20,000 respectively. They share profits in 2 : 2 : 1 and earned profit of & 50,000 during the year. Partners are entitled to ( Interest on capital @ 5% p.a. (ii) Commission to Q @10% on turnover. (Turnover is 7 1,00,000). (iii) R is entitled to a commission of 5% of net profit after charging interest on capital (iv) S gave given a loan of & 50,000 to the firm (v) Rent paid to R for running business in his Personal property for ¥ 4,000. Prepare profit and loss appropriation acco” and partners’ capital account..ccounting for Partnership Firm: Fundamentals 1 43, Fill the missing figures, Particutary Amt ( Particulars ‘Amt (2) To Inerest on Capital By Profit and Loss Ale 2 2,000 8 To Salary A (400 per month) B (600 quarterly) 4,000 To Profit transferred to A's Capital (3/Sth) B's Capital (2/Sth) 16,000 4, Aand B are partners in a firm sharing profits in the ratio 3 : 2. Their capital balance were %5,00,000 and & 2,00,000 respectively after necessary adjustments in respect of drawings and net profit ‘The firm earned a profit of ® 50,000 during the year and A drew ® 4,000 quarterly and B drew & 20,000 annually. It was subsequently found that interest on capital @ 10% p.a. of A had been omitted. It was decided to pass an adjustment entry to rectify above errors. Pass an adjustment entry. 5, Atul and Gita were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their fixed capitals were % 4,00,000 and @ 2,00,000 respectively. After the accounts for the year were prepared, it was noticed that interest on capital @ 6% p.a., as provided in the partnership deed, was not credited to the capital accounts of partners before distribution of profits. Pass the necessary adjusting journal entry Show your workings clearly. [cBsé 2024) 6. Cheese and Slice are equal partners. Their capitals as on Ist April, 2022 were 250,000 and T 1,00,000 respectively. After the accounts for the financial year ending 31st March, 2023 have been prepared, it is observed that interest By Interest on Drawing ‘A (Drew & 4,000 during the year @ 5%) 18 (Drew & 2,000 on Ist July (a 5% pa.) on capital @ 6% per annum and salary to Cheese @ 8 5,000 per annum, as provided in the partnership deed has not been credited to the partners’ capital accounts before distribution of profits. You are required to give necessary re entries using profit and loss adjustment account. ing . Tilu and Pilu started business on Ist July, capitals of € 30,000 and % 20,000 ly. They admit Nilu in business for 1/4th share in the business with minimum guarantee of profit of € 10,000 p.a. The firm earned a profit of % 24,000 during the year. Prepare profit and loss appropriation account for the year ending 31st March, 2024. |. Monika, Bhoomika and Kamolika are partners sharing profits in the ratio of 6:4: 1. Kamolika is guaranteed a minimum amount of & 3,00,000 as her share in profits. The firm earned a net profit of € 22,00,000 for the year ended 31st March, 2022. Prepare profit and loss appropriation account of the firm of the year ended 31st March, 2022. [CBSE 2023]secur answer matches with the answer given here then put (7) in the box otherwise Put (X) Incase. did not attempt the question leave the box blank. Multiple Choice Questions 1og 2acag 3.0 aca 500 6 oo zcO abd sag 08D ned 2AO mag wad 16.00 BO veQ 8 O 28O 20.80 280 2.00 23.00 ad 280 2.80 27.80 280 aco 30.0 0 3.cQ 3280 3380 340 35.0 0 Your Score. (Wo. of Comect Answers) Assertion-Reason Questions 10g 280 380 400 sag ead Multiple Choice Questions 1. (D) Stamp Act, Registrar of Firms 2. (C) Maximum number of partners are 50 as per Indian Partnership Act, 1932 3. (D) A need to return % 2,35,000 to the firm 4. (C) Only Gi) 5. (D) Option (A), (B) and (C) are charge against profits whereas option (D) is an appropriation of profits, 6. (D) It is unlimited jointly and severally for all the acts of the firm done while he is partner. and (iv) Explanations 7co aco 9cO Your Score_____ (No.of Correct Answers) Correct/Incorrect Statements 1ag 280 aod 460 sag eco 7a 0 aco oad Your Score (to. of Correct Answers) Case Based Questions «aco wag 2000 weo Your Score, (Wo. of Correct answers) 8. (B) Total Profit x z 1,50,000 Total Profits = 150,000 x 2 As share = 150,000 x 10 5 = 2,50,000 10 8. (A) Total Remuneration = Salary + Commis 70.000 = 20,000 +( Net Profit x fn, 50,000 = Net Profit x 1° in Net Profit = 50,000 x 1! _ ¢ 5,50,000 10‘Accounting for Partnership Firm: Fundamentals 10. (B) Profit and Loss Appropriation Account br for the year ended. cr Particulars | Amt (?)| Particulars | Ame () By Profit & Loss Ae |60,000* us 9.000 By Interest on y 6,000 15,000 Drawings ‘To Profit transferred to x x 30,000 | y 20,000 $0,000, 65,000, ‘To Interest on Cs 3,000, 2.000) 5,000 65,000 Y's Divisible Profit = Divisible Profit x Y's Share 20,000 = Divisible Profit x2 <. Divisible Profi 20,000 xd =%50,000 *Net Profit = Divisible Profit + Expenses — Reserves = 50,000 + 15,000 - 5,000 = 60,000 1. (B) 10% pa. 12. (A) Opening capital 00,000 + 40,000 - 32,000 - 24,000 4,84,000 66 @) wings = 10,000 x—2- x2 Interest of Drawings = 10,000 x95 x75 =% 300 14, (A) Profit and Loss Appropriation Account Dr for the year ended... cr 1B. To interest on Capital | 40,000|ByNet Profit _1,75.000 (Vanya5,00,000 x 8%) To Salary (Aanya 5,000 12) To Profit transferred to Capital Ales Vanya Aanya 15, (D) Amount Credited to Omkar’s Capital Account Salary Share of Profit (5,60,000 x 1/2) 17 20. 21. 22, 23. 24. B (B) Opening Capital =1,50,000 + 10,000 — 16,000 (B's profit) 144,000, (C) Interest on Capital X-% 16,000 Y-% 8,000 But profit of 15,000 is insufficient. So, we will divide profits in interest on capital ratio of interest on capital i.e. 2: 1. X’ Interest on Capital = 15,000 x2 =# 10,000 Y's Interest on Capital = 15,000 x4 5,000 3 (B) Total Loss = 52,000 + 18,000 70,000 (2 : 3) (B) Time left after Ist Drawing = 9 months Time left after Last Drawings = 3 months Average Period ‘Time left after Ist Drawing + \¢ left after Last Drawings 2 94312 2p np émons « (B) 660 = (2,000 x 12) xB 35 660 =( 12) x Rx 660 x12 100 © 2,000 x12 x55 R=6% pa. as (B) 4,800 = Tc nt =< 800 =Total Drawings x75 x Total Drawings = 4,800 x22 2 Total Drawings =% 1,20,000 Monthly Drawings ae =110,000 (D) Interest on Capital 30,000 18,000 12,000 Salary 40,000 40,000 40,000 70,000 58,000 52,000 Ratio 70,000: 58,000:52,000 = 70 : 58: 52 or 35: 29: 26 (D) Ravi’s current account will be debited (A) Statement =A B c Amount to be Credited 15,000 — 3,0004 Credited 8,000 6,000 4,000 7000 6,000 1.000 Ce Dr Dr 25. (B) Particolar Aisy Vinod Firm PER CHE De Cray Deity Cre) Interest on Capita a Stabem bak 15000 20000 35,000 Distbuted (82) 21.000 14.000 35.000 Total 1.000 2,000 2,000 14.000 35.000 1.000 Net Feet, 1.000 [000 26. (B) After giving profit of 8,000 to C, total loss of firm was & 13,000 to be distributed equally between A and B. Bs share =13.000 1 = 6500 27. (B) A's Profit= 48,000 x 3 = 24,000 ~ 600 =% 23,400 B's Profit = 48,000 x2 =16,000 ~ 400 1 715,600 C's Profit = 48,000 x ae 8,000 + 1,000 = £9,000 (For 9 months) 28. (B) (iv), (iii), (ii), (i) 29. (C) x =99,000 «6 = 54,000 Y= 99,000 x4 ~ 36,000 Z = 99,000 x4 = 9,000 X will sacrifies his share of profit = 15,000 ~ 9,000 =¥ 6,000 So, X's share in profit of the firm = 54,000 ~ 6,000 = ¥ 48,000 30. (D) Profit at the end (31st March, 2021) = 3,12,000 Share of Profit E® Fe Ge 3,12,000% 3. 3.12,000x 2. 3,12,000 x 2 ees 8 5 = 117000 = 117,000, = 78,000 Guarantee share of G ~ 80,000 (2,000) = 2,000 Deficiency born by E credkmt® KECOUNTANCY case, 31. (©) (i, Gi) and GD) 32. (B) GiGi) (id 33. (B) Gin Gi) iv 34, (A) A, Interest on Drawings 8 = 91000 755% <8 tay 640 average period = "5 =3 B. Interest on Drawings 8 7s = 12,000 «795 * 7) = 8 bay C. Interest on Drawings B98 = 6.000% 55 * 15 =8 360 35. (D) Gi) Gii) Assertion-Reason Questions 6 6 1. (D) Interest on Loan = 50,000 x55 x 5 =1,500 - (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A) (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A) 4. (D) Since interest on drawings is a revenue, i will be provided irrespective of profits or losses. (A) Both Assertion (A) and Reason (R) are ine and Reason (R) is the correct explanation of Assertion (A) (A) Both Assertion (A) and Reason (R) are ine and Reason (R) is the correct explanation of Assertion (A) 2, 8. ‘©) Additional capital and withdrawal of capital can change the capital balance. (©) Reserves are appropriation of profits. Correct/Incorrect Statements 1 9. () Both statements are correct 2 (B) Fluctuating capitals may as may not sho™ a positive balance. % (P) Interest on loan is a charge and is debit to profit and loss account.cecounting for Partnership Firm: Fundamentals ‘4, (p)interest on capital can be provided even in case of losses, if itis a charge against profits 5, (A)Both statements are correct 6, (Cl the absence of deed, no partner will recieve any salary against work done by him. 7, (A)Both statements are correct 3g, (c)The mamixum number of partners are prescribed in The Indian Companies Act, 2013 and not in The Indian Partners 2013 in Partnership Act, 9, (AyBoth statements are correct case Based Questions ( (Net Profit x 10, = 1. qcyNet 100 © 44,000 4,40,000 Raju's Commission =(4,40,000 ~ 44,000) x 1. = ¢ 70 7 36.000 (ii) (4Divisible Profit },40,000 - 44,000 — 36,000 = © 3,60,000 Amt (®) 50,000 40,000 90,000 2, (i) cqynterest on Capital ‘Aditi (5,00,000 x 10%) Saurabh (4,00,000 « 10%) which is more than available profit i.e 781,000. Thus, available profit will be divided in partners capital r 1000 x 5 9 =€ 45,000 (ii) cgylnterest on Adit’s Capital Subjective Questions _ Inthe absence of deed, the provisions of Indian Partnership Act, 1932 will apply. (i) In the absence of deed, no remuneration alary, commission, etc) will be paid to the partner. (ji) The Chartered Accountant is correct. In the absence of deed, interest on loan will be provided @ 6% p.a. iii) N cannot charge commission since there is no deed. (iv) 0 is wrong. In the absence of deed, to admit ‘a partner, the consent of all the partners is Puncet's share = 3,60,000 x 5 = € 1,80,000 required. 2. Profit and Loss Appropriation Account for the year ending .. cr aan aan _| Amt @| Particulars “amt ®) To Interest on Capital ByProfitand Loss Ac $0,000 P 5,000 (©) imerest on Loan (6.000) 5 um a R 1,000) 8,000) (—) Rent (4,000) 43,000 To Commission to Q 10,000 — To Commission to 8 | uas0 ‘To Profit transfered to Capital Ales P 9,300) Q 9,300 | R 4650) 23,250 43,000 43,0001% er Partners’ Capital Account ce Particulars P@® | ew | R® Particulars PR OR) RR To Balance e/d 1.14300, 61,300, 31,400 By Balance b/d 1,00,000 40,000 20,000 By Interest on Capi 5,000 2,000 1,000 — 10.000 1,750 By Commission By P and L App. A/c (Profit) 9,300, 9,300 4,650 By Rent smo 1,14,300 31,400 31.400 =r _ 3. r Profit and Loss Appropriation Account oo _ for the year ending... ee or Particulars Amt (2) Particulars Amt (2) ro a os a 2,000 By Interest on Drawings D 2,000 4,000 A 200 To Salary A/c 5 ons S 4,800 e 2,400 7,200 To Profit transferred to A's Capital Ale 24,000 B's Capital Ale 16,000 40,000 51.200 4, Calculation of Opening Capital (It was subsequently found that interest on capi eee interest on capital Closing Capital (4) Drawings (J) Net Profit (3 : 2) Opening Capital Statement Amount to be Credited Amount Credited Dr B's Capital A/c To A’s Capital A/c (Being adjustment entry passed) 19,440-ounting for Partnership Firm, Fundamental als OnE JOURNAL. Particulars 5 a's Curren A euta LP Amt (Dr) Ame Cr) To Gat Mul’s Current Ave ° Adjustment Table Atul ( 1. Amount to be Credited " Interest on Capital a 6% 24,000 HL. Amount to be Debited : Share of Profit, 21,600 Net Effect (1-11) 2.400 (C1) JOURNAL Date Particulars, Profit and Loss Adjustment Ae Dr To Cheese's Capital Ale To Slice’s Capital Ave (Being interest on capital omited earlier now provided) Profit and Loss Adjustment A/c Dr To Cheese's Capital Ale (Being salary omitted earlier now provided) Cheese's Capital A’e Dr Slice’s Capital Ae Dr To Profit and Loss Adjustment Alc (Being loss on adjustment transferred to partners) Profit and Loss Appropriation Account Dr for the year ending 31st March, 2024 Particulars At (2) Particulars To Profit transferred to Capital A/C By P&L Ale Tilu (9,000 - 750) 8.280 Pilu (9,000 ~ 750) 8250 ilu (6,000 + 1.500) 7.500% 24,000 24,000 10,000 x9/12 =% 7,500 *Nilu’s Guarantee (For 9 months) 2.400 2.400 Gita (®) Total (2) 12,000 36,00 14.400 36,000 2,400 (De) Nil LF Ame(Dr) Amt (Cr) 9,000 3,000 6,000 5,000 5.000 7,000 7,000, 14,000 cr Amt (t) 24,000 24,000 7coeckMaBE. KCCOUNTANCY case Cy Account Profit and Loss Appropriation ACW) Cr Dr for the year ended 31st March, 2022 ‘ Particulars Amt (®) a — To Profit transferred 10 By Profrané Loss Ac(NeH pm) OSHA Monika’s Capital A’e 12,00,000 () Transferred to Kamol {60,000 11,40,000 Bhoomika's Capital A‘c 8,00,000 (=) Transfer to Komaltka (40,000), 7.60,000 Komalika’s Capital A/c 200,000 (+) Transfer trom Moni 60,000 (+) Transfer from Bhoomika 40,000 _3,00,000 ey 22.00.00 Working Note Profit share in ratio of 6: 4:1 Monika é %22,00,000 = & 12,00,000 Bhoomik: 4 %22,00,000 = ® 8,00,000 Kamolika = it % 22,00,000 = & 2,00,000 The deficiency amount of & 1,00,000 in share of Kamolika contributed by Monika and Boomika in there profit sharing ratio 6: 4 Share contributed by Monika = 1,00,000 x < = £60,000 Share contributed by Bhoomika = 1,00,000 x z = 840,000