Question Bank

Class- XII ACCOUNTANCY

Chapter-1
Accounting for Partnership-fundamental

 Concept of Partnership and Partnership Deed

1 mark questions:-

Q1. Does Partnership firm has a separate legal entity? Give reason in support of your answer. [2017]

Q2. A group of 40 people wants to form a partnership firm. They want your advice regarding the maximum
no. of persons that can be there in partnership firm and the name of the act under whose provision it is
given. [2016]

Q3. Ananya, Bimal and chetna are partners dealing in sale of gift items. Ananya without the knowledge of
Bimal & Chetna is also running business of supplying gift items with the help of her husband. She is
earning good profits from this business which she did not share with Bimal & Chetna was Ananya
correct in doing so? Indicate the value which she did not follow. [2016]

Q4. State the provisions of Indian partnership act. 1932 regarding interest on partner’s capital & interest
on partners loan when there is no partnership deed. [2015]

Q5. The partnership deed is silent on payment of salary to partners. Anita a partner claimed that, since the
managed the business. She should get a monthly salary of ₹ 10,000. Is she entitled for the salary? Give
reason. [2014]

Q6. State the provisions of Indian partnership act, 1932 regarding the payment of remuneration to a
partner for the services rendered. [2012]

Q7. What share of profit would a ‘sleeping partner’ Who has contributed 75% of the total capital get in the
absence of a dead. [2011]

Q8. Is a sleeping partner liable for the acts of other partners? [2011]

Q9. Would a ‘charitable dispensary’ run by 8 members be deemed a partnership firm? Give reason in
support of your answer. [2011]

Q10. What is meant by partnership deed? [2011, 10]

Q11. Why should firm have a partnership deed? [2011]

Q12. What is meant by ‘Unlimited liability of a partner’? [2010]

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Q13. A, B & C decided that interest on capitals will be provided to each partner @ 5% per annum but after
one year C wants that no intt on capital is to be provided to any partner. State how C can do this?
[2010]

Q14. A, B & C are partners and decide that no interest on drawings is to be charged to any partner. But after
one year. C wants that interest on drawings should be charged to every partner. State how C can do
this. [2010]

[2019]

 Computation of Appropriation item and charge items-

1 mark questions:-

Q1. Tom and Harry were partner in a firm sharing profits in the ratio of 5:3 during the year ended 31 st
March, 2015. Tom had withdrawn ₹40,000. Interest on his drawings amounted to ₹2000. Pass
necessary journal entry for charging interest on drawings assuming that the capitals of the partners
were fluctuating. [2016]

Q2. Nusrat & Sonee were partner in a firm sharing profits in the ratio of 3:2 during the year ended 31 Mar,
2015. Nusrat had withdrawn ₹ 15000. Interest on drawing amounted to ₹300. Pass journal entry for
charging interest on drawings assuming that the capitals of the partners were fixed. [2016]

Q3. Anna & Bobby were partners sharing profits & losses in the ratio of 5:3. On 1 st Apr, 2014 their capital
accounts should balances of 3,00,000 & ₹ 2,00,000 respectively. Calculate the amt. of profit to be
distributed between the partners if the partnership deed provided for interest on capital @ 10%, p.a &
firm earned a profit of ₹ 45,000 for the year ended 31st March 2015. [2016]

Q4. A partnership deed provides for the payment of interest on drawing for the same amount withdrawn
at the beginning of each quarter. [2016, 11]

Q5. Where would you record interest on drawings & when capitals are fixed? [2010]

Q6. Where would you record interest on drawing when capitals are fluctuating? [2010]

6 mark questions:-

Q1. On 1st Apr, 2013 Mohan & Sohan entered into partnership for doing business of dry fruits. Mohan
introduced ₹1,00,000 as capitals & Sohan introduced ₹50,000. It was further agreed that as & when
there will be a need Sohan will introduce further capital. Sohan was also allowed to withdrawn from

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his capital when the need for the capital was less. During the year ended 31 st Mar, 2014. Sohan
introduced & withdrew the following amt. of capital.

Date Capital introduced withdrawn Capital

1st May, 2013 10000 -

th
30 June, 2013 - 5000
th
30 Sept, 2013 97000 -
1st Feb, 2014 - 87000
The partnership deed provided intt on capital @ 6% p.a. Calculate capitals of partners. [2015]

[2019]

 Partners capital accounts & profits & loss appropriation account.

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1 mark questions:-

Q1. Distinguish between ‘fixed capital account’ & ‘fluctuating capital account’ on the basis of credit
balance. [2017]
Q2. What is meant by fixed capital of a partner? [2016]
Q3. What is meant by fluctuating capital of a partner? [2016]
Q4. Name the accounts which are maintained for the partners when capitals of partners are fixed. [2014]
Q5. Distinguish between fixed & fluctuating capitals accounts. [2014, 2011]
Q6. When the partners capitals are fixed, where the drawings made by a partners will be recorded? [2013]
Q7. The firm XYZ earned a profit of ₹ 2,75,000 during the year ending on 31 st march, 2009 10% of this profit
was to be transferred to general reserve. Pass necessary journal entry. [2010]
3 mark questions:-

Q8. On 1st Apr, 2013 Brij & Nandan entered into partnership to construct toilets in gov. girls schools in the
remote areas of Uttarakhand. They contributed capitals of ₹ 10,00,000 & ₹ 15,00,000 respectively.

Their profit sharing ratio was 2:3 & interest allowed on capitals as provided in the partnership deed @
12% , p.a. During the year ended 31st March, 2014 the firm earned a profit 2,00,000 . Prepare profit &
loss appropriation A.c of Brij & Nandan for the year ended 31st Mar, 14. [2015]

Q9. On 1st Apr, 2013 Jay & Vijay entered into partnership for supplying laboratory equipments to g. schools
situated in remote and backward areas. They contributed capitals of ₹ 80,000 and ₹ 50,000
respectively & agreed to share the profits in the ratio of 3:2. The partnership deed provided that
interest on capital shall be allowed at 9%, p.a. During the year the firm earned a profit of ₹ 7800.

Showing your calculations clearly. Prepare P/L appropriation account of Jay and Vijay for year ended
31st Mar, 2014. [2015]

4 mark questions:-

Q10. Jain, Gupta and Singh were partner in a firm. Their fixed capitals were 4,00,000, 6,00,000 and
10,00,000 respectively. They were sharing profits in their ratio of their capitals. The firm was engaged
in the processing & distribution of flavored milk. The partnership deed provided the intt on capital @
10% p.a. During the year ended 31st March, 2014 firm earned a profit of ₹1,47,000. Show your working
note clearly and prepare. P/L appropriation account of the firm. [2015]

Q11. Singh and Gupta decided to start a partnership firm to manufacture low cost jute bags a plastic bags
were creating many environmental problems. They contributed capitals of ₹1,00,000 and 50,000 on 1st
Apr, 2012 for this. Singh expressed his willingness to admit Shakti as a partner without capital. Who is
specially abled but a very creative and intelligent friend of his. Gupta agreed to this. The terms of
partnership were as follows-

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(a) Singh, Gupta and Shakti will share profits in the ratio of 2:2:1
(b) Interest on capital will be provided @ 6% p.a.Due to shortage of capital singh contributed ₹25000 on
30th sept.2012 & Gupta contributed ₹10000 on 1st Jan 2013 as additional capital.

The profit of the firm for the year ended 31st March 2013 was ₹ 1,68,900.

Prepare P/L appropriation account for the year ending 31 st March, 2013. [2014]

Q12. Lalan & Balan were partners in firm sharing profits of ratios 3:2. Their fixed capitals on 1 st Apr, 2010
were Lalan ₹1,00,000 and Balan ₹ 2,00,000. They agreed to allow intt on capital @12% per annum &
charges on drawings @ 15% p.a. The firm earned a profit, before all above adjustments of ₹30,000 for
a year ended on 31st Mar,2011. The drawings of Lalan & Balan during the year were ₹ 3000 and ₹5000
respectively. Showing your calculation clearly. Prepare profit & loses appropriation account of Lalan &
Balan. The intt. on capitals will be allowed even if firm incures loss. [2012]

Q13. A & B entered into partnership on 1st Apr, 2009 without any partnership deed. They introduced capital
of ₹ 500,000 & 3,00,000 respectively. on 31st oct, 2009. A advanced ₹2,00,000 by way of loan to a firm
without any agreement as to interest. The P/L account for the year ended 31st Mar, 2010 showed a
profit of 4,30,000 ₹ but the partners could bot agree upon the amt of intt on loan to be charged & the
division of profits.

Pass a journal entry for the distribution of the profit between the partners & prepare the capitals A/C
of both the partners & loan A/C of ‘A’. [2011]

 Past Adjustments and guarantee-

1 mark questions:-

Q1. P & Q were partners in firm sharing profit and losses equally their fixed capital were ₹2,00,000 and
₹3,00,000 respectively. The partnership deed provided for interest on capital @ 12% p.a. For the year
ended 31st Mar, 16 the profits of the firm were distributed without providing interest on capital.
[2017]

Q2. P & Q were partners in a firm sharing profits equally. Their fixed capitals were ₹1,00,000 & ₹5,00,000
respectively. The partnership deed provided for interest on capital at the rate of 10% p.a. For the year
ended 31st Mar.2016 the profits of the firm were distributed without providing interest on capital. Pass
necessary adjustment entry to rectify the errors. [2017]

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3 mark questions:-

Q3. A and B are partners in a firm sharing profits in the ratio of 3:2 on 31 st March, 2014 the balance sheet
of the firm was as follows.

Balance Sheet
As on 31st March, 2014

Liabilities Amt.(₹) Assets Amt(₹)

Capital A/c Sundry Assets 80,000
A – 60,000
B – 20,000 80,000
TOTAL 80,000 TOTAL 80,000

The profit of ₹ 80,000 for the year ended 31 st March, 2014 was divided between the partners without
allowing interest on capital @ 12% p.a. and a salary to A at ₹1000 and B ₹20,000. Pass single entry to
rectify the error. [2015]

Q4. Mukesh & Ramesh are partners sharing profit & losses in the ratio of 2:1 respectively. They admit
Rupesh as a partner with ¼ share in profits with a guarantee that his share of profit shall be atleast
₹55000. The net profit of the firm year ending 31 st Mar, 2013 was ₹ 1,60,000. Prepare P/L
appropriation account. [2014]

Q5. Mona, Nisha & Priyanka are partners in firm. They contribute ₹ 50,000 each as capital 3 years ago. At
that time, Priyanka agreed to look after the business on Mona & Nisha were busy. The profits for the
past three years were ₹ 15,000, ₹25,000 & ₹50,000 respectively. While going through books of
accounts, Mona noticed that the profits has been distributed in the ratio of 1:1:2. When she enquired
Priyanka about this, Prinka answered that since she looked after the business she should get more
profit. Mona disagreed & decided to distribute profit equally retrospectively for the last 3 years.

You are required to make necessary correction in the books of accounts of Mona, Nisha & Priyanka by
adjusting entry. [2013]

Q6. Mohan, Neeraj and Peeyush are partners in firm. They contributed ₹75,000 each as capitals 3 years
ago. At that time Peeyush agreed to look after the business as Mohan and Neeraj were busy. The
profits for the past three years were ₹ 45,000, ₹30,000 and ₹60,000 respectively. While going through
the books of accounts, Mohan noticed that profit had been distributed in 1:1:2 ratio. When he
enquired from Peeyush about this, Peeyush answered that since he looked after the business he
should get more profit Mohan disagreed & it was decided to distribute profits equally retrospectively
from the last three years.

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You are required to make necessary corrections in the books of Mohan, Neeraj and Peeyush. [2013]

4 mark questions:-

Q7. Praveen, Sahil and Riya are partners having fixed capitals of ₹2,00,000 , ₹1,60,000 and ₹1,20,000
respectively. They share profits in ratio of 3:1:1. The partnership deed provided for the following which
are not recorded in the books.

(i) Interest on capital @5% p.a.

(ii) Salary to Praveen ₹ 1500 per month & Riya ₹ 1000 per month.
(iii) Transfer of profit to general reserve ₹10,000. Net profit for the year ended 31 Mar, 2015 was
1.00,000.

Pass necessary rectifying entry for the above adjustments in the books of the firm. Also show working
note. [2016]

Q8. Ajay, Binay & Chetan were partners sharing profits in the ratio of 3:3:2. The partnership deed provided
for the following.

(i) Salary of 2000 per quarter to Ajay and Binay.

(ii) Chetan was entitles to a commission of ₹8000.
(iii) Binay was guarantee a profit of ₹50,000 p.a.
The profit of the firm for the year ended 31 st March, 2015 was 1,50,000 which was distributed
among Ajay, Binay & Chetan in the ratio of 2:2:1, without taking into consideration the provisions
of partnership deed. Pass necessary rectifying entry for the above adjustments in the books of the
firm. [2016]

Q9. Vikas & Vivek were partners in a firm sharing profits in the ratio of 3:2. On 1 st Apr,2014. They admitted
Vandana as a new partner for 1/8th share in the profits with a guarantee profit of ₹ 1,50,000. The new
profit sharing ratio between Vikas & Vivek will remain same but they decided to bear any deficiency on
account of guarantee Vandana in the ratio of 2:3. The profit of the firm for the year ended 31 st Mar,15
was 9,00,000₹. Prepare P/L appropriation account of Vikas, Vivek and Vandana for the year 31st
Mar,15. [2016]

Q10. P & Q are partners in a firm sharing profits in the ratio of 5:3. On 1 st April, 2014 they admitted R as a
new partner for 1/8th share in profit with a guarantee profit of ₹75,000. The new profit sharing ratio
between P & Q will remain the same but they agreed to bear any deficiency on account of guarantee
to R in ration 3:2. The profit of the firm for the year ended 31 st Mar, 15 was ₹4,00,000. Prepare profit &
loss appropriation account of P,Q and R for the year ended 31st March, 2015. [2016]

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Q11. Prem, Param & Priya were partners in firm. Their fixed capitals were Prem ₹ 2,00,000. Param ₹
3,00,000 and Priya ₹5,00,000. They were sharing profits in the ration of their capitals. The firm was
engaged in the sale of ready-to-eat food packets at three different locations in the city, each being
managed by Prem, Param & Priya. The outlet managed by Prem was doing more business outlet than
managed by Param and Priya. Prem requested Param & Priya for a higher share in the profits of the
firm which Param & Priya accepted. It was decided that the new profit sharing ratio will be 2:1:2 and its
effect will be introduced retrospectively for the last four years. The profits of the last four were
₹2,00,000 , ₹3,50,000, ₹4,75,000 and ₹5,25,000 respectively. Showing your calculations clearly, pass a
necessary adjustment entry to give effect to the new agreement between Prem, Param and Priya.
[2015]

Q12. A and B are partners in a firm sharing profits & losses in ratio of 3:2. The following was the balance
sheet of the firm as at 31 Mar, 2010 .

Balance Sheet
As at 31st March,2010
Liability Assets
Capital Sundry 80,000
A - 60,000 Assets

B - 20,000 80,000

80,000 80,000

The profits ₹ 30,000 for the year ended 31st March,2010 were divided between the partners without
allowing interest on capital @ 12% p.a. & salary to A @ ₹ 1000 per month. During the year, A withdrew
₹ 10,000 & B ₹ 20,000. Pass journal entry. [2011]

Q13. A, B, C and D are partners sharing profits & losses in the ratio of 4:3:3:2. Their respective fixed capitals
on 31st March, 2010 were ₹60,000, ₹ 90,000, ₹ 1,20,000 and ₹ 90,000 respectively. After preparing the
final accounts for the year ended 31st Mar,2010 it was discovered that interest on capital @ 12% p.a.
was not allowed & the interest on drawings amounting to ₹ 2000, ₹2500, ₹1500 . Pass the necessary
journal entry. [2011]

Q14. A,B and C were partners in a firm. On 1st Apr, 2008 fixed capitals stood at ₹ 50,000, ₹25000
respectively. As per the provision of deed-

a) B was entitled for a salary of ₹ 5000 p.a.

b) All the partners were entitled to intt on capital @ 5% p.a.
c) Profits were to be shared in the ratio of capital.

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The net profits for the year ending 31st March, 2009 of equally without providing for the above terms.
Pass the necessary entry. [2011]

Q15. P,Q and R are partners sharing profits ratio of 3:2:1 However, R is guaranteed ₹20,000 as his share of
profits every year. During deficiency if any would be borne by the other partners. The profits for the
two years ending 31st March,2008 and 31st March, 2009 had been ₹75,000 & ₹80,000 respectively.
Show the profit & loss appropriation account for 2 years. [2011]

Q16. A, B and C were partners, their capitals were ₹ 30,000, ₹20,000 & ₹10,000 respectively. According to
the partnership deed, they were entitled to interest on capital @ 5% p.a. In addition B was also entitled
to draw a salary of ₹500 per month C was entitled to a commission of 5% of the profit after charging
the interest on capitals but before charging the salary payable to B. The net profits for the year were
₹30,000 distributed in the ratio of their capitals without providing for any of the above adjustments.
The profits were to be shared in the ration of 2:2:1. Pass the necessary adjustment entry. [2010]

6 mark questions:-

Q17. On 31st March,2014 the balances in the capital accounts of Eleen, Monu & Ahmad after making
adjustments for profits and drawings were ₹1,60,000, ₹1,20,000 and ₹80,000 respectively.
Subsequently, it was discovered that the intt on capital & drawings bad been omitted.

(i) The profits for the year ended 31st March, 2014 was ₹40,000.
(ii) During the year Eleen & Monu each withdraw a total sum of ₹24,000 in equal installments in the
beginning of each month & Ahmad withdrew a total sum of ₹48,000 in equal installments at the
end of each month.
(iii) The intt on drawings was to be charged @5% p.a. & intt on capital were to be allowed @10% p.a.
(iv) The profit sharing ration among them 2:1:1.showing your working note clearly. Pass journal entry.
[2015]

Q18. Seema, Tanuja and Tripti were partners in a firm trading in garments. They were sharing profits in the
ratio of 5:3:2. Their capitals on 1st Apr. 2012 were ₹3,00,000 , ₹4,00,000 & ₹8,00,000 respectively. After
flood in Uttarakhand, all partners decided to help the flood victims personally.

For this, Seema withdrew ₹20,000 from the firm on 15 th sept,2012. On the same date Tanuja instead of
withdrawing cash from the firm, took garments amounting to ₹24,000 from the firm & distributed
those to the flood victims. On the other hand, Tripti withdrew ₹2,00,000 from her capital on 1 st Jan,
2013 & provided an mobile medical van in flood affected areas. the partnership deed provides for
charging internet on drawing @6% p.a. After the final accounts were prepared, it was discovered that
interest on drawings had not been charged. Give the necessary adjusting journal entry & Show working
note clearly. Also state two values which the partners wanted to communicate to the society. [2014]

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Q19. A,B, and C were partners in a firm on 1st Apr, 2012. Their capitals stood as₹5,00,000, ₹2,50,000 &
₹2,50,000 respectively. As per partnership deed-

(a) c was entitled for a salary of ₹5000 per month.

(b) A was entitled for a commission of ₹80,000 per annum.
(c) Partners were entitled to interest on capital @6% p.a.
(d) Partners will share profits in ratio of capitals.
Net profit for the year ended 31st March,2013 was ₹3,00,000 which was distributed equally without
taking into consideration the above provisions. Showing your working note clearly. Pass entries.
[2014]

Q20. Ali, Bimal & Deepak are partners in a firm. On 1 Apr,2011 their capital accounts steed at ₹4,00,000,
₹3,00,000 & ₹2,00,000 respectively. They shared profits & looses in the ratio of 5:3:2 respectively.
Partners are entitled to intt on capital @ 10% p.a. & Salary to Bimal and Deepak@₹2000 per month &
₹3000 per quarter respectively as per the provisions of the partnership deed.

Bimal’s share of profit concluding intt on capital but including salary is guaranteed at a minimum of
₹50,000p.a. Any deficiency arising an that account shall be met by Deepak. The profits of the firm for
the year ended 31st March, 2012 amount to ₹2,00,000. Profit & loss appropriation account for the year
ended 31st March, 2012. [set 1, 2013]

Q21. Anwar, Biswas & Divya are partners in a firm. Their capital accounts stood at ₹8,00,000, ₹6,00,000
&₹4,00,000 respectively. On 1st Apr,2011. They shared profits & losses in ratio of 3:2:1 respectively.
Partners are entitled to interest on capital @6%p.a & salary to Biswas & Divya @₹4000 per month &
₹6000 per quarter respectively as per the provision of partnership deed.

Biswas’s share of profit (including intt. on capital but encluding salary) is guaranteed at a minimum of
₹82,000 p.a. Any deficiency arising on that account shall be met by Divya. The profits for the year
ended 31st March, 2012 amounted to ₹3,12,000. Prepare P/L appropriation account for the year ended
31st March, 2012. [set 2, 2013]

Q22. Ahmad, Bheem & Daniel are partners in Daniel are partners in a firm. On 1 st Apr, 2011the balance in
their capital accounts stood at ₹8,00,000, ₹6,00,000 & ₹4,00,000 respectively. They shared profits in
proportion of 5:3:2 respectively. They shared profits in proportion of 5:3:2 respectively. Partners are
entitled to interest on capital @5% p.a. & salary to Bheem@3000₹ per month & a commission of
₹12,000 to daniel as per the provisions of the partnership deed.
Ahmad’s share (excluding intt on capital) is guarantee at not less than ₹25,000 p.a.Bheem’s share of
profit (including intt. on capital but excluding salary) is guaranteed not less than ₹ 55,000 p.a. Any
deficiency arising on that amounted to ₹2,16,000. Prepare P/L appropriation account for year ended
31st March,2012. [set 3 2013]

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