1. Ram, Pan and Sam were partners in the ratio of 4:3:1. Sam died on 30th June2020.

Calculate Sam’s share of

profit till date of death if the share is based on last year sales and profit. Sales during 1st April 2019 and 31st
March 2020 was Rs20,00,000 and Profit earned was Rs50,0000. Sales till date of death was Rs5,00,000. 1

2. P, Q and Rahim are sharing profits and Losses in the ratio of 5:3:2. They decide to share profits and losses in
the ratio of 2:3:5 with effect from 1st April, 2022. They decide to record the effect of the following without
affecting their book values, by passing an adjustment entry: 3
Book Values
General Reserve 1,50,000
Contingency Reserve 25,000
Profit & Loss(Cr) 75,000

3. A and B are partners sharing profits and losses in the ratio of 3:2. They admit C into partnership for 1/4th
share, which he takes 1/4th from A and 1/8th from B. Goodwill exists in the books at Rs 30,000. C brings
Rs20,000 as goodwill out of his share of Rs30,000. It was decided that the shortfall in amount shall be debited
to C’s Current Account. Pass necessary journal entries to record the above. 3
4. M and N are partners sharing profits and losses in the ratio of 3:2. They admit O into partnership for 1/4 th

share, which he takes 1/6th from M and 1/12th from N. Goodwill exists in the books at Rs 20,000. O brings
Rs18,000 as goodwill out of his share of Rs30,000. It was decided that the shortfall in amount shall be debited
to C’s Current Account. Pass necessary journal entries to record the above

5. The following is the balance sheet of Mohit, Sunny and Raj who are partners sharing profits in the ratio of
2:2:1, as on March 31st 2021. 4
Balance sheet as on March31st 2021
Liabilities Amount(Rs) Assets Amount(Rs)
Creditors 4,00,000 Goodwill 3,00,000
Reserve fund 2,50,000 Fixed Assets 6,00,000
Capitals: Stock 1,00,000
Mohit: 300,000 Sundry Debtors 2,00,000
Sunny : 2,50,000 Cash at Bank 1,50,000
Raj:1,50,000 7,00,000
13,50,000 13,50,000
Sunny died on June 15 2021. According to the deed, his legal representatives are entitled to:
th

i. Balance in capital Account

ii. Share of goodwill valued on the basis of thrice the average of the past 4years profits.
iii. Share of profits up to the date of death on the basis of average profits for the past 4 years.
iv. Interest on capital account @ 12p.a.
Profits for the years ending on March 31 of 2018, 2019, 2020, 2021 respectively were
Rs1,50,000,Rs1,70,000, Rs1,90,000 and Rs1,30,000.
Sunny’s legal representatives were to be paid the amount due. Mohit and Raj decided to take
over Suraj’s share equally. Calculate the amount payable to his legal representatives.

6. . From the following information calculate ‘Interest Coverage Ratio:

Profit after interest and tax Rs7,20,000
10% Debentures Rs8,00,000
Rate of income tax 40%.
ii. From the following information calculate ‘Proprietary Ratio’
Long term Borrowings Rs3,00,000
 Long term provisions Rs1,00,000
Current Liabilities Rs 50,000
Non- current Assets Rs 4,60,000
Current Assets Rs 90,000
iii. The fixed assets of a company were Rs45,00,000. Its current assets were Rs5,30,000 and current
liabilities were Rs3,30,000. During the year ended 31st March, 2019 the company earned net profit
before tax Rs15,00,000. The tax rate was 30%. Calculate return on investment.
7. From the following information calculate ‘Interest Coverage Ratio:
Profit after interest and tax Rs6,00,000
10% Debentures Rs8,00,000
Rate of income tax 40%.
ii. From the following information calculate ‘Proprietary Ratio’
Long term Borrowings Rs2,00,000
Long term provisions Rs1,00,000
Current Liabilities Rs 50,000
Non- current Assets Rs 3,60,000
Current Assets Rs 90,000
iii. The fixed assets of a company were Rs35,00,000. Its current assets were Rs4,30,000 and current
liabilities were Rs3,30,000. During the year ended 31st March, 2019 the company earned net profit
before tax Rs18,00,000. The tax rate was 30%. Calculate return on investment.