ACCOUNTANCY TEST 1.

(7th March 2021)

QUESTIONS CARRY 4,5,6 MARKS Respectively

1. Haris and Usama started business in partnership on 1st January, 2019 without
any agreement. Mr. Haris introduced capital Rs. 60,000 and Mr. Usama Rs.
40,000. On March 1st, 2019 Mr. Usama advanced Rs. 20,000 by way of loan
to the firm. The profit for the year ended 31st, December 2019, was amounted
to Rs, 18,000.
Prepare Profit and Loss Appropriation Account at the end of 2019.

2. Sohail and Maham are partners in a firm sharing profit in the ratio of 5:3.
The partnership agreement provided that Sohail was to be paid salary of Rs.
1,500 per month and Maham was to get a commission of Rs. 12,000 per
year. Interest on capital was to be allowed @ 4% p.a. and interest on
drawings was to be charged @ 5% p.a. Interest on Sohail’s drawings was
Rs. 1,800 and Maham’s drawings was Rs. 1,200. Capital of Sohail was Rs.
140,000 and Maham Rs. 100,000. The firm earned a profit Rs. 75,000 for the
year ended December 31st, 2019.

3. Huda and Anum are partners sharing profit and losses in the ratio of 3:2. On
1st April, 2019 their capitals were: Huda was 80,000 and Anum Rs. 40,000.
Prepare Profit and Loss Appropriation Account and the Partner’s Capital
Accounts at the end of April 30th, 2020, after considering the following items:
(a) Interest on Capital is to be allowed 5% per annum
(b) Interest on the loan advance by Huda of Rs. 6,000 and Anum Rs. 4,500.
(c) Interest on partner’s drawings @ 6% p.a. Drawing: Huda Rs. 20,000 and
Anum Rs. 15,000.
The net profit for the end of year April 30th, 2020 was Rs. 46,500.