oMavid Thomas Note : Read questions carefully , Please write narrations for Journals and deaw proper format QI Suresh and Ramesh were partners in the ratio of 3:2, maintains fixed capitals . From the following balance sheet of Suresh and Ramesh , Calculate interest on capital at 12% pa Liabilities [Amount (Rs) [Assets ‘Amount (Rs) | ‘Suresh 's Capital 300,000 750,000 Ramesh’s Capital 200,000 | Buildings 200,000 PAL Appropriation a/e ‘2023 50,000 | Stock. 100,000 350,000 $50,000} ‘During the year 2023 Suresh *s drawings were Rs.20,000 and Ramesh’s drawings ‘were Rs. 40,000, \ Profit during the year 2023 was Rs. 160,000. is the basis of relationship. between the partners to run the partnership ess ‘aOMer b. Acceptance ¢. Understanding d. Agreement 3. Adand B were partners ina firm the ratio of 3:2. On IM April 2022 capitals Rs. 150,000 and IRs 200,000 respectively .Interest on capital at 10% p.a, The firm earned during the year ended 31" March 2023 Net loss of Rs. 100,000 . Interest on capital A will be a Rs. 15,000 b. Nil c. 35,000 d. 6000 1 Q ¢ Assertion (A) . Interest on partner's loan is debited to profit and loss account Reason (R) , Interest on loan is a charge against profits a Assertion (A) is correct and Reason ( R) is wrong b. Assertion (A) is wrong and Reason ( R) is correct, Both Assertion (A) and Reason (R) are correct d. Both Assertion (A) and Reason (R) are wrong, Read the following hypothetical situation and answer the following questions ‘Anu, Charu and Divya are partners in the ratio of 2:1:2. Their capitals Rs. $00,000 Rs. 300,000 ‘and Rs 200,000.Anu personally guaranteed that in any year, Divya share of profit after allowing the interest on capital at 5% p.a would not be less than Rs, 75,000 , The profit for the year ending 31" March 2022 amounted to Rs. 200,000. Q5 Divya's amount of guaranteed is short by the following amount 2 Rs 75,000 b. Rs 5000 c. Rs. 15,000 a.Rs, 20,000 1 Q6 The final umount of profit distributed among the partners after the adjustment of guaranteed amount tothe all the partners will be 2 Anu Rs $0,000 Charu Rs, 25,000 Divya Rs. 75,000 b Anu Rs $5,000 Charu Rs, 30,000 Divya Rs. 65,000 2. Anu Rs. $7,000 Charu Rs, 28,000 Divya Rs, 65,000 2, Anu Rs. 45,000 Charu Rs, 30,000 Divya Rs, 75,000 1 Q 7 Goodwill of the firm is calculated at Rs, 2,50,000 based 50,000 based on capitalization of Average profits method Capital A Rs $00,000 and B Rs. 250,000 Normal rate of return at 20 %. Find Average profits 1 Q8.Capital accounts of Naresh and Mahesh Rs, 500,000 each and current r accounts Naresh Rs, $0,000 and Mahesh Rs, 40,000 each as on 31" March 2023 . On the same date Reserves Rs. 100,000 Bank loan Rs, 200,000 Investments Rs, 50,000 Goodwill Rs. 100,000. and Advertisement suspense Rs. 25,000 .Find the capital employed from the above information ‘Scanned with CamSeannetin were partners sharing in the ratio 2.1:1, Raman withdrew Rs. 3000 % pa was charged 9. Raman, Manan and Nam Se eaa a Rtnean we Rs. 4000 every month Interest on drasngs a Siezeas ne partnership "deed was silent about interest on drawings Pass the mdjustment entry 3 :ta and Anita partners in the firm sharing in the ratio of 3:2:1 Firm has given a loan 100,000 on | June 2022 Vinita paid 12 % pa till Dec 2022 and till 31" Dee 2023 ty Q 10. Vinita to Vinita Rs the interest is due Pass Journals Q 11 Calculate the Interest on Drawings of Ram @ 10% p.a. for the year ended 31” Mar, 2023 in each of the following altemative cases: Fete) Sithe withdrew Rs.2,000 pan. in the beginning of every month; Case (b) _- Ifhe withdrew Rs. 2,000 p q. at the end of every quarter = If he withdrew Rs.2,000 p.m, for § months 3 Case (c) Q 12.A business eamed as Average profits Rs. 8,00,000 during the last few years. Normal rate of return 3 10% Assets of the business Rs. 22,00,000 and Liabilities Rs. 5,60,000 .Pariners A and B received salary of Rs. 1,500 each per month. Calculate the value of goodwill at 2 years purchase of Super Profit Q 13. X and Y are partners in the ratio of 2:3 Salary for X Rs. 2000 pm and Y Rs 3000 pm Commission to X Rs, 6000 p.aand Y Rs, 9000 p.a , Net profit for the year Rs. $0,000 Pass Journals for Commission and Salary to the partners 3 Q 14. Calculate the goodwill based on 2 years purchase of average profit of 4 years . e Year Profits Year Profits 2013 -14 350,000 ; 2014 - 15 475,000 2015-16 6,70,000 ; 2016-17 743,000 Additional information : 1. To cover management cost an annual charge of Rs. 54,000 should be made for the purpose of valuation of goodwill 2. The closing stock for the year ended 2016 was overvalued by Rs. 15,000 3. Rs. 40,000 worth of furniture was wrongly debited as General expenses in the year |" April 2015. It should be depreciated at 10 % p.a according to diminishing cost. 4 4. Profit on sale of asset Rs. 40,000 in Oct 2014 QIS.A and B start business on July 1 2014, each partner contributing Rs. 1,50,000 as their share of capitals. Three months later, on October !, 2014 B makes an additional contribution of Rs. 1,00,000 which is treated as a loan . The profit for the period Rs, 85,000 before charging any interest. All the pariners were entitled to a salary of Rs. 4,000 each quarter and interest on capital of 10%.p.a . The partners has drawn Rs. 24,000 each on 1* January 2015. B's profit is guaranteed at Rs. 20,000 pa by A Prepare the Profit and loss appropriation account for the year ending as on 31" Mar 2015, Q 16. On March 31, 202 capital accounts of E, M and A after making adjustments for profits, drawings, ele, were as E-Rs 8,00,000, M-Rs.6,00,000, and A-Rs.4,00,000, The Net profit Rs.12,00,000 was distributed equally The drawings during the year were: E-Rs.2,00,000, M-Rs. $0,000, and A-Rs.90,000. Subsequently it was discovered that the partners were entitled to interest on capital @ 5% per annum and Interest on. , ravings chargeable @ 12 % pa not credited and charged . Partners A has given loan of Rs, $00,000 rat interest was nt paid and M's Salary Rs, 20,000 pm was not considered. 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