Class 12 Accountancy Test ( Chapter 1 & 3 )

Marks – Q1 – 3, Q2- 2, Q3 – 4, Q4 – 6 (Total Marks- 15) Time : 1 hrs.

Q 1. Arun and Arora were partners in a firm sharing profits in the ratio of 3:3. Their fixed capitals on 1-
04-2010 were : Arun 60,000 and Arora 80,000. They agreed to allow interest on capital @ 12% p.a. and
to charge on drawings @ 15% p.a. The profit of the firm for the year ended 31-03-2011 before all above
adjustments were 12,600. The drawings made by Arun were 2,000 and Arora 4,000 during the year.
Prepare Profit and Loss Appropriation Account of Arun and Arora. Show your calculations clearly. The
interest on capital will be allowed even if the firm incurs loss.

Q 2. Geeta, Sunita and Anita were partners in a firm sharing profits in the ratio of 5:3:2. On 1.01.2015
they admitted Yogita as a new partner for 1/16 share in the profits. On Yogita’s admission, the Profit and
Loss Account of the firm was showing a debit balance of 20,000 which was credited by the accountant of
the firm to the capital accounts of Geeta, Sunita and Anita in their profit sharing ratio. Did the
accountant give correct treatment? Give reason in support of your answer.

Q 3. Neena and Sara were partners in a firm with fixed capitals of 5,00,000 and 4,00,000 respectively. It
was discovered that interest on capital @ 6% p.a. was credited to the partners for the years ending 31
March, 2018 and 31 March, 2019. Where as there was no such provision in the partnership deed. Their
profit sharing ratio during the last two years was

2017-18 - 4:5

2018-19 - 5:1

Show your working clearly, pass the necessary adjustment entry to rectify the error.

Q 4. Chander and Damini were partners in a firm sharing profits and losses equally. On 31 March, 2017
their Balance Sheet was as follows :

Liabilities Rs. Assets Rs.

Sundry Creditors 1,04,000 Cash at Bank 30,000
Capital : Bills Receivable 45,000
Chander 2,50,000 Debtors 75,000
Damini 2,16,000 Furniture 1,10,000
Land and Building 3,10,000

5,70,000 5,70,000

On 1.04.2017, they admitted Elina as a new partner for 1/3 share of profits on the following conditions :

1. Elina will bring 3,00,000 as her capital and 58,000 as her share of goodwill premium. Half of the
premium withdrawn by the partners.
2. Debtors to the extent of 5,000 were unrecorded.
3. Furniture will be reduced by 10 % and 5 % provision for bad and doubtful debts will be created
on bills receivables and debtors.
4. Value of land and building will be appreciated by 20 %.
5. There being a claim against the firm for damages, a liability to the extent of 8,000 will be created
for the same.

Prepare Revaluation A/c, Partners Capital A/c and Balance Sheet.