Q-1. Shiv
& Hari entered into Partnership on 1st April ,2015 ,Contributing
Rs 500,000 & Rs 2,00,000 respectively. Hari also introduced Rs 1,00,000 as
additional capital on 1st July ,2015.They agreed to share Profits
and Losses in the ratio of 3 : 2. Following information is Provided regarding
the Partnership:
(i) Shiv
& Hari each are allowed a Salary of Rs 5000 per Quarter .
(ii) Interest
is to be allowed on Capitals @ 8% P.A. and Charged on Drawings at 10% P.A.
Drawings of
Shiv & Hari during the year were Rs 12,000 and Rs 10,000 respectively.
Profit as 31st March ,2016 before the above mentioned adjustments
was Rs 1,96,000.
Prepare:
(i) Necessary Journal Entries relating to appropriation of Profits.
(ii) Profit
& Loss Appropriation A/C , and
(iii) Partner’s
Capital A/C.
Q-2. A &
B are Partners Sharing Profits in the Ratio of 3 : 2, with Capitals of Rs
5,00,000 and Rs 3,00,000 respectively. Interest
on Capital is agreed @ 6% P.a. B is to be allowed an annual salary of Rs
60,000. During the Year 2016-17,the Profits prior to the calculation of
Interest on Capital but after charging B’s Salary amounted to Rs 1,80,000 . A
Provision of 5% of the Profit is to be made in respect of Commission to the
Manger .
Prepare
Profit & Loss Appropriation Account showing the Distribution of Profit and
the Partner’s Capital accounts for the Year ending March 31,2017.
Q-3. X &
Y are Partners in a Firm. Their Capital as on April 1,2015 were Rs 2,50,000
& Rs 1,80,000 respectively. They share Profits Equally .On July 1,
2015,they decided that their Capitals
should be Rs 2,00,000 each. The Necessary Adjustments in the capitals were
made by withdrawing or introducing cash.
According to the Partnership deed ,interest on Capital is to be allowed at 8%
P.a. X is to get an annual salary of Rs 4000 & Y is allowed a monthly salary
of Rs 800.It was found that Y was regularly withdrawing his monthly salary.
The Manager
of the firm is entitled to a Commission of
10% of the Profit before any Adjustment is made according to the
Partnership deed.
Net profit
for the year ended on 31st March ,2016, before charging Interest on Capital & Salary
,was Rs 80,000. Prepare the Profit & Loss Appropriation Account ,Partner’s
Capital Accounts & Current Accounts.
Q-4. A, B
& C were Partners in a Firm having Capitals of Rs 60,000 , Rs 60,000
& Rs 80,000 respectively. Their
Current Account balances were A: Rs 10,000; B: Rs 5000; & C: Rs 2000{Dr.}.
According to the Partnership deed 10% of
the Net Profit is to be transferred to general reserve and the Partners were
entitled to Interest on Capital @ 5% P.a. C being the Working Partner was also
entitled to a Salary of Rs 12,000 P.a. The Profits were to be divided as
Follows:
(a)The First Rs
20,000 in Proportion to their Capitals.
(b) Next Rs
30,000 in the ratio of 5 : 3 : 2.
(c)Remaining
Profits to be Shared Equally.
The Firm
made a Profit of Rs 1,80,000 for the Year ended 31st March,2017
before Charging any of the above items .Prepare the Profit & Loss
Appropriations A/C and Pass Necessary
Journal Entry for appropriation of Profit.
Q-5. A &
B are Partners with Capitals of Rs 5,00,000 & Rs 3,00,000 respectively .The
Profit for the year ended 31st March , 2016 was Rs 3,46,000 before allowing Interest on
Partner’s Loan .Show the distribution of Profit after taking the Following into
Consideration:
(i).Interest
on A’s Loan of Rs 1,50,000 to the Firm Provided on 1st April ,2015.
(ii).Interest
on Drawings @ 6% P.a. Drawings were A Rs 60,000 and B Rs 40,000.
(iii).B is
to be allowed a Commission of 2% on Sales. Sales for the year were Rs
30,00,000.
(iv).10% of
the Divisible Profits is to be Kept in a Reserve A/c.
Q-6. X , Y
& Z are Partners with Fixed capital of Rs 1,50,000 , Rs 1,20,000 and Rs
1,00,000 respectively . The Balance of Current Account on 1st
April,2015 were X Rs 8000 Cr.; Y Rs 3000 Cr. & Z Rs 2000 Dr. . X advanced
Rs 20,000 on October 1, 2015.
The Partnership deed Provided for the Following :
(a)Interest
on capital at 5% P.a.
(b) Interest
on Drawings at 6% P.a. Each Partner drew Rs 10,000 on October 1,2015.
(c)Rs 20,000
is to be transferred to a Reserve A/C.
(d)Profit
& Loss to be shared in the Proportion of 3 : 2 : 1 upto Rs 60,000 &
above Rs 60,000 Equally.
Net Profit
of the Firm for the Year ended 31st March , 2016 before above
adjustments was Rs 1,15,400.
From the
above information ,Prepare Profit & Loss Appropriation account ,Capital
Account and Current Account of the Partners.
Q-7. The
Capital Accounts of X & Y showed balances of RS 40,000 & Rs 20,000 on 1st
April , 2012. They Shared Profits in the ration of 3 : 2 .They allowed Interest
on Capitals @ 10% P.a. and are charged
Interest on Drawings @ 12% P.a. X also advanced a loan of Rs 10,000 to the Firm
on 1st August , 2012.
During the
Year X withdrew Rs 1000 Per Month in the Beginning of Every month ,Whereas Y
withdrew Rs 1000 Per Month at the End of the Every Month.
The Profits
for the year ended 31st March,2013 , Before the above mentioned
adjustments were Rs 20,960. Show the Distribution of Profits and Prepare the
Partner’s Capital Accounts.
Q-8. On 1st
April, 2014, A ,B and C started a Business with Capitals of Rs 5,00,000 ;Rs
4,50,000 and Rs 2,50,000 respectively. According to the Partnership agreement :
(i)Profit
earned in any year will be distributed as under:
Upto Rs
3,00,000 Equally.
Excess over
Rs 3,00,000 – 1/5th to A ,
2/5th to B , & 2/5th to C.
(ii)Allow
Interest on Capital @ 5% P.a. and Charge Interest on Drawings @ 8% P.a.
(iii) A
& C are entitled to get monthly salaries of Rs 4,500 & Rs 5,500
repectively. In addition to salaries , both are Entitled to get a Commission of
4% (each) on Net Profit after taking into consideration Salaries ,Interest and
all Commissions .
Drawings of
the Partners during the year were :
A withdrew
regularly Rs9000 at the end of Every Month.
B withdrew
regularly Rs8000 at the beginning of Every Month.
C withdrew
Rs50,000 during the year.
The Profit
of the Firm for the Year before charging all the above adjustments was Rs
5,47,880.
Dispute the
Profit among the Partners and Prepare Partner’s Current accounts when Capitals
are Fixed.
Q-9. A &
B Contribute Rs 5,00,000 & Rs 3,00,000 respectively by way of Capital on
which they agree to allow Interest On Capital @ 6% P.a. Their respective share of Profits is 3 : 2 and the
Profit for the Year is Rs 40,000 before allowing Interest on Capitals. Prepare
the Necessary Account to Allocate Interest On Capitals in the Following Cases:
(i)When the
Partnership deed is Silent about the treatment of Interest on capital ,and
(ii)When
Interest is a Charge as Per the Partnership deed.
Q-10. Arun
& Arora were Partners in a Firm Sharing Profits in the ratio of 5 : 3. Their Fixed Capitals on 1.04.2010 were
: Arun Rs 60,000 & Arora Rs 80,000.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 31.3.2011 before all above adjustments were Rs 12,600. The
Drawings made by Arun were Rs 2000 and by Arora Rs 4000 during the Year
.Prepare Profit & loss Appropriation account of Arun & Arora. Show Your
Calculations Clearly. The Interest On Capital will be allowed even if the firm
incurs a loss.
Q-11. On
31.03.2014 the Capital Accounts of Elvin ,Monu & Ahmed after making
adjustments for Profits ,Drawings Etc.were as , Elvin – Rs 80,000 ; Monu – Rs
60,000 & Ahmed – Rs 40,000. 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
Elvin – Rs 20,000 ; Monu – Rs 15,000 & Ahmed – Rs 9000. Interest on
Drawings Chargeable to the Partners was Elvin – Rs 500 ; Monu – Rs 360 &
Ahmed – Rs 200. The Net Profit For the
Year ended 31st March ,2014 amounted to Rs 1,20,000. The Profit
sharing ratio of the Partners was 3 : 2 : 1.
Record the
Necessary adjustment Entry for Rectifying the above Errors of Omission .Show
your Working Clearly.
Q-12. Ahmed
, Bheem and Daniel are Partners in a Firm. On 1st April,2011 the
balance in their capital Accounts stood at Rs 8,00,000 , Rs 6,00,000 & Rs
4,00,000 respectively .They shared Profits in the Proportion of 5 : 3 : 2
respectively. Partners are Entitled to Interest on capital @ 5% P.A. and Salary
to Bheem @ Rs3000 Per Month and a Commission of Rs 12,000 to Daniel as Per the
Provisions of the Partnership Deed.
Ahmad’s
Share of Profit,Excluding Interest on Capital, is Guaranteed at not less than
Rs 25,000 P.a. Bheem’s share of Profit , Including Interest on Capital ,but
excluding salary ,is Guaranteed at not less than Rs55,000 P.a. Any deficiency
arising on that account shall be met by Daniel. The Profits of the Firm for the
Year ended 31st march ,2012 amounted to Rs2,16,000. Prepare ‘profit
& Loss Appropriation A/c ‘ For the Year ended 31st March,2012.
Q-13. A
& b are in Partnership sharing Profits and Losses in the ratio of 3 : 2.
They Decided to admit C , their Manager , as a Partner with Effect From 1st
April,2016, by giving One – Fourth share of Profits .
C, While a
manger , was in receipt of salary Rs 27,000 P.a. and a Commission of 10% of the
Net Profits after charging such salary and Commission.
In terms of
the Partnership deed, any excess amount which C will be Entitled to receive as
a Partner over the amount which would have been due to him if he Continued to
be the manager ,would have to be Personally Borne by A out of his share of
Profit. Profit for the Year ended 31.03.2017,amounted to Rs2,25,000,before
payment of salary and Commission.
You are
required to show the Profit 7 Loss Appropriation A/c For the Year ended
31.03.2017.
Q-14. A, B
& C are in Partnership . A & B sharing profits in the ratio of 3 : 1 and C receiving an annual Salary of Rs 32000 Plus 5% of the Profits
after Charging his Salary and Commission ,or ¼ of the Share of Profits of the
firm whichever is more. Any Excess of the latter over the Former received by C
is , under the Partnership deed , to be Borne by A & B in the ratio of 3 : 2.
The Profits for the Year ended 31st March ,2017 came to Rs 1,68,000
after Charging C ‘s Salary.
Nice sir
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