EDUNIQUE TUTORIALS

WORKSHEET: PARTNERSHIP FUNDAMENTAL

Q 1 P, Q and R are partners sharing profits in the ratio of 2 : 1 : 1. Their capitals as on 1st April, 2017 were ₹ 50,000, ₹
30,000 and ₹ 20,000 respectively. At the end of the year ending 31st March, 2018 it was found out that interest on
capitals @ 12% p.a. salaries to P ₹ 500 per month and R ₹ 1,000 per month were not adjusted from the profits. Show
adjusting entry to be made in thenext year for above adjustments.

Q 2 Charo, Deepika and Era entered into partnership. Cham agreed to manage the· business as Deepika and Era were
busy. The profits for the past three years were ₹ 2,00,000, ₹ 4,50,000 and ₹ 5,50,000 respectively which were
distributed-by Charu as per partnership act. Subsequently, Deepika realised that Cham should be givenhigher share
of profits since she was managing-the business efficiently. She.proposed to Era that Charu should be given 40% share
of profits and the remaining profit should be shared by them (i.e. Deepika and Era) equally. Era agreed to this
proposal and. it was decided to distribute the profits in this manner retrospectively· for the. last three years.

1. You are required to give necessary adjusting entry.

2. Identify the values involved in distributing the profits retrospectively.

Q 3 Raja, Roopa and Mala sharing profits and losses equally have fixed capitals of, ₹ 12,00,000, ₹ 9,00,000 and ₹
6,00,000 respectively. For the year ended 31st March, 2016, interest was credited to them @ 6% instead of 5% p.a.
Give adjusting entry.

Q 4 Pranshu and Himanshu are partners sharing profits and Losses in the ratio 3 : 2 respectively. They admit Anshu
as partner with 1/6th share in the profits of firm Pranshu-personally guarnteed that Anshu's share of profit would.
not be less than ₹ 30,000 in any year. The net profit of the firm for the year ending 31st March, 2013 was ₹ 90,000.
Prepare Profit and Loss Appropriation Account.

Q5 Ram, Mohan and Sohan were partners. They admit Rakesh as a partner and guaranteed that his share· of profit
shall not be less than ₹ 70,000. Profits are to be shared in the ratio of 4 : 3 : 2 : 1 but excess clai med by Rakesh over
his normal share has been guaranteed by Ram and Mohan in the ratio of 2 : 1. If total profits were ₹ 4,00,000,
prepare a statement showing distribution.

Q 6 X, Y and Z are partners in a firm. Their Capitals as on April 1, 2016 were ₹ 5,00,000; ₹ 4,00,000 and ₹ 3,00,000
respectively. On July 1, 2016 they introduced further Capitals of 1,00,000; 80,000 and 50,000 respectively. On
February 1, 2017 Y withdrew ₹ 15,000 from his Capital. Interest is to be allowed @ 8% p.a. on the Capitals. Compute
interest on Capitals for the year ending March 31, 2017.

Q 7 A, B and C are partners in a firm For six months ending 31st March, 2018:
A drew regularly ₹ 15,000 in the beginning of every month B drew regularly ₹ 20,000 at the end; of every month and
C drew regularly ₹ 25,000 in the middle of every month.
Calculate interest on drawings @ 10% p.a, for. six months ending 31st March 2018.

Q 8 X, Y and Z ate partners in a firm. You are informed that:

1. X draws ₹ 4,000 from the firm at the beginning of every month.

2. Y draws ₹ 4,000 from the firm at the end of every month.
3. Z draws ₹ 4,000 from the firm in the middle every month. Interest on drawings is to be charged @ 9% p.a,
Calculate interest on partner's drawings.

Q 9 A and B are partners sharing profits and losses equally with capitals of ₹ 3,00,000 and ₹ 2,00,000 respectively.
Their drawings during the year ending on 31st March, 2018 are as follows:
A's drawings on:
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₹
30-06-
20,000
2017
31-07-
10,000
2017
01-10-
10,000
2017
01-03-
16,000
2018
B drew ₹5000 at the end of each month.The deed provides interest on capitals and drawings at 10% p.a. Calculate
interest on capitals and drawings.

Q 10 Suresh and Ramesh were partners in a firm sharing -profits in the ratio of 3 : 2. Their fixed capitals were Suresh
₹ 9,00,000 and Ramesh ₹ 6,00,000 The partnership deed provided for the following:

1. Interest on capital @ 5% per annum.

2. ₹ 60,000 per annum salary to Suresh and salary ₹ 2,000 per month to Ramesh. The profit earned by the furn
for the year ended 31-3-2018 was ₹ 2,34,000.

The profits were divided equally without providing for the above. Pass adjustment entry.

Q 11 A and B are partners in a firm. Their capitals as on 1st April, 2016 were ₹ 2,10,000 and ₹ 90,000 respectively.
They share profits in the ratio of 2 : 1. On 1st August, 2016, they decided that their capitals should be readjusted
according to their profit sharing ratio. The necessary adjustments in the capitals were made by withdrawing or
introducing cash. Interest on capital is allowed at 12% p.a. Compute interest on capitals for the year ending on 31st
March, 2017.

Q 12 Assuming the capitals are fixed in Question and give the necessary adjusting journal entry.
A and B are partners in a business sharing profits and losses in the ratio of 3 : 2. Their capitals on 31st March, 2018,
after the adjustment of net profits and drawings amounted to ₹ 2,00,000 and ₹ 1,50,000 respectively. Later on, it
was discovered that interest on Capital at 8% per annum, as provided for in the partnership deed, had not been
credited to the partner's capital accounts before the distribution of profits. The year's net profit amounted to ₹
75,000 and the partners had withdrawn ₹ 24,000 each. Instead of altering the signed balance sheet, it was decided
to make an adjustment entry at the beginning of the new year crediting or debiting the Partner's Accounts. Give the
necessary journal entry as also a statement of details arriving at the amount of adjusting entry.

Q 13 X, Y and Z were in partnership, X and Y sharing profits in the proportion of 2 : 1 and Z receiving a salary of ₹
1,790 per month plus 5% of the profit after charging his salary and commission or15th15th of the firm whichever is
more.
Any excess of the latter over the former received by Z is, under the partnership deed, to be borne by X The profit for
the year ended 31st March, 2018 amounted to ₹ 1,28,520 after charging Z' s salary.

Q 14 X, Y and Z are partners in a firm sharing profits and losses in the ratio 5 : 3 : 2. Their capitals (fixed) are ₹
2,00,000, ₹ 1,50,000 ₹ 1,25,000 respectively. For the ended 31st March 2018 interest on capital was credited to
them @ 8 instead of 10%.
Give adjusting journal entry.

Q 15 A and B were partners sharing profits in 2 : 1 ratio. During the year ended 31st March 2016, A's drawings were
₹ 50,000 per month drawn in the beginning of every month and B's drawings were, ₹ 25,000 per month drawn at the
end of every month After the preparation of final accounts, it was discovered that interest on A's drawings @ 12%
p.a. was not taken into consideration. Give the necessary adjusting entry on 1st April, 2016.
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