Indraprastha WORLD SCHOOL

Paschim Vihar, New Delhi-110063

SESSION 2023-24
SPECIAL TEST, MAY 2023
ACCOUNTANCY (055)
SET - B
Class: XII Maximum Marks: 20
Date: 01.05.2023 Time: 45 Minutes

GENERAL INSTRUCTIONS:
 This question paper contains 10 questions.
 Please write the serial number of the question clearly

Accounting for Partnership Firm – FUNDAMENTALS & METHODS OF VALUATION OF GOODWILL

1. R and S are partners sharing profits in the ratio of 2:1. S has advanced a loan of Rs 1,00,000 to the firm on 1st
October, 2020. The net profit earned by the firm forthe year ending 31st March, 2021 is Rs 90,000. What
amount will be credited to S’s capital account?
a. Rs 60,000 b. Rs 30,000 c. Rs 29,000 d. Rs 32,000

2. Assertion (A):- Commission provided to partner is shown in Profit and Loss A/c.
Reason (R):- Commission provided to partner is charge against profits and is to be provided at fixed rate.
a) (A) is correct but (R) is wrong
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) Both (A) and (R) are incorrect.
d) Both (A) and (R) are correct, and (R) is the correct explanation of (A)

3. A, B and C are partners. A‘s capital is ₹ 3,00,000 and B‘s capital is ₹1,00,000. C has not invested any
amount as capital but he alone manages the whole business. C wants 30,000 p.a. as salary, though the
deed is silent. Firm earned a profit of ₹1,50,000. How much will each partner receives as an
appropriation of profits?
a) A ₹ 60,000; B ₹ 60,000; C ₹ 30,000 b) A ₹ 90,000; B ₹ 30,000; C ₹ 30,000
c) A ₹ 40,000; B ₹ 40,000 and C ₹ 70,000 d) A ₹ 50,000; B ₹ 50,000 and C ₹ 50,000
4. Green and Orange are partners. Green draws a fixed amount at the beginning of every month. Interest on
drawings is charged @8% p.a. At the end of the year interest on Green's drawings amounts to ₹ 2,600.
Monthly drawings of Green were:
a) ₹ 8,000 b) ₹ 60,000 c) ₹ 7,000 d) ₹ 5,000
5. A and B were partners in firm sharing profits and losses equally. Their capitals were ₹60,000 and ₹1,20,000
respectively. They were entitled to interest on capital @ 10%. The firm earned a profit of ₹ 9,000 during the
year. The interest on B’s Capital will be

(A) ₹ 12,000 (B) ₹ 10,800 (C) ₹ 7,200 (D) ₹ 6,000

6. A partner withdrew Rs.6,000 per quarter year and interest on drawings was calculated as Rs. 1,200 at
the end of accounting year 31st March 2022.What is the rate of interest on drawings charged? Also give
journal entry for charging interest on drawings. 3

7. Ajay, Manish and Sachin were partners sharing profits in the ratio 5:3:2. Their Capitals were ₹ 6,00,000;
₹ 8,00,000 and ₹ 11,00,000 as on April 01, 2021. As per Partnership deed, Interest on Capitals were to
be provided @ 10% p.a. For the year ended March 31, 2022, Profits of ₹ 2,00,000 were distributed
without providing for Interest on Capitals. Pass an adjustment entry and show the workings clearly.
5
8. Average profits earned by firm is Rs.7,50,000 which includes overvaluation of stock Rs.30,000 on
an average basis. The capital invested in the business is Rs. 6,30,000 and the normal rate of return
is 5%. Calculate goodwill of the firm on the basis of 5 times the super profits. 3

9. X and Y are partners sharing profits in the ratio of 3 : 2. Their partnership deed provided for allowing
interest on capital @ 10% p.a. and charging interest on drawings @ 12% p.a. The incomplete Profit
and Loss Appropriation Account for the year ended 31st March, 2019, partners capital and current
accounts are given below :

Profit and Loss Appropriation Account for the year ended 31st March, 2019

To Interest on Capital : By Profit and Loss A/c

X’s Current A/c .......... Net Profit b/d ..........

Y’s Current A/c .......... ……….

To Salary

Y’s Current A/c ……….. By Interest on Drawings :

X’s Current A/c…..

Y’s Current A/c ….

To Profit transferred to:

X’s Current A/c 1,20,000

Y’s Current A/c .......... .........

Partners Capital Account (fixed)

X(Rs) Y(Rs) X(Rs.) Y(Rs.)

To bal c/d …… ……… By bal b/d ………

………

Partners Current Account

X(Rs) Y(Rs) X(Rs.) Y(Rs.)

To bal c/d …… ……… By bal b/d 78,000 69,000

To Drawings 10,000 9,000 By Int on Cap 18,000 24,000

To…….. …….. …….. By ……. ……..

To ……. …….. ……... By ……. ……..

Complete the Profit and Loss Appropriation Account for the year ended 31st March, 2019, Partners’

Capital Accounts and Current Accounts.