END OF MCQ
BEGINNING OF LONG QUESTIONS
Q.1) Rakshit and Malik are partners in a firm sharing profits and losses in the ratio of 4 : 1. On 1st April, 2021,
their capitals were ₹1,20,000 and ₹80,000 respectively. On 1st December, 2021, they decided that the total
capital of the firm should be ₹3,00,000 to be contributed by them in the ratio of 2 : 1. According to the
partnership deed, interest on capital is allowed to the partners @ 6% p.a.
Calculate interest on capital to be allowed for the year ending 31st March, 2022.
Q.2) On 01.04.2022, Ravi, Kavi and Avi started a partnership firm with fixed capitals of ₹6,00,000, ₹6,00,000
and ₹3,00,000 respectively. The partnership deed provided for the following :
(i) Interest on capital @ 10% per annum.
(ii) Interest on drawings @ 12% per annum.
(iii) An annual salary of ₹1,20,000 to Avi.
(iv) Profits and losses were to be shared in the ratio of their capitals.
The net profit of the firm for the year ended 31.03.2023 was ₹3,08,000.
Interest on partners’ drawings was Ravi ₹4,800, Kavi ₹4,200 and Avi ₹3,000.
Prepare Profit and Loss Appropriation Account of Ravi, Kavi and Avi for the year ended 31.03.2023.
Q.3) Varun and Vivek were partners in a firm sharing profits in the ratio of 3:2. The balance in their capital and
current accounts as on 1 st April, 2022 were as under:
Particulars Varun(₹) Vivek(₹)
Capital accounts 3,00,000 (Cr.) 2,00,000 (Cr.)
Current accounts 1,00,000 (Cr.) 28,000 (Dr)
The partnership deed provided that Varun was to be paid a salary of ₹ 5,000 p.m. whereas Vivek was to get a commission
of ₹ 30,000 for the year. Interest on capital was to be allowed @ 8% p.a. whereas interest on drawings was to be charged
@ 6% p.a. The drawings of Varun were ₹ 3,000 at the beginning of each quarter while Vivek withdrew ₹ 30,000 on
1st September, 2022. The net profit of the firm for the year, 2022-23, before making the above adjustments was ₹
1,20,000. Prepare Profit and Loss Appropriation Account and Partners' Capital and Current Accounts.
Q.4) Ajay, Manish and Sachin were partners sharing profits in the ratio 5:3:2. Their Capitals were ₹ 6,00,000; ₹
8,00,000 and ₹ 11,00,000 as on April 01, 2021. As per Partnership deed, Interest on Capitals were to be
provided @ 10% p.a. For the year ended March 31, 2022, Profits of ₹ 2,00,000 were distributed without
providing for Interest on Capitals.
Pass an adjustment entry and show the workings clearly.
Q.5) Meera, Neena and Ojas were partners in a firm sharing profits and losses in the ratio of 5:3:2. The
partnership deed provided for charging interest on drawings @10% p.a. The drawings of Meera, Neena and
Ojas during the year ended 31st March, 2023 amounted to ₹60,000; ₹50,000 and ₹40,000 respectively. After
the final accounts had been prepared it was discovered that interest on drawings had not been taking into
consideration.
Pass the necessary adjustment entry.
Q.6) P, Q and R were partners with fixed capital of ₹ 40,000, ₹32,000and ₹24,000. After distributing the profit
of ₹48,000 for the year ended 31st March 2022 in their agreed ratio of 3 : 1 : 1it was observed that:
(1) Interest on capital was provided at 10% p.a. instead of 8% p.a.
(2) Salary of ₹ 12,000 was credited to P instead of Q.
You are required to pass a single journal entry in the beginning of the next year to rectify the above omissions.
Q.7) P and Q were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 01.04.2022, they
admitted R as a new partner for 1/10th share of profits with a guaranteed minimum of ₹50,000. P and Q
continued to share profits as before but agreed to share any deficiency on account of guarantee to R in the
ratio of 3 : 2. The net profit of the firm for the year ended 31.03.2023 was ₹3,00,000.
Pass necessary journal entries in the books of P and Q for the above transactions
Thank you
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