Professional Documents
Culture Documents
RKG Fundamentals Partnership Test 60 Marks
RKG Fundamentals Partnership Test 60 Marks
General Instructions:
Agar cheating kari to Final Boards Exams me (-) 10 ho jayenge ! Ye shraap hai !
Question No. 1 to 3 are based on the given text. Read the text carefully and answer the questions: [3]
Balwant and Mohit decided to set up a partnership to sell low-sodium, plant-based vegan snacks. Since both of them
had a family, they decided to withdraw a salary of ₹ 12,000 per quarter.
Balwant also withdrew ₹ 1,00,000 on 31st December 2020 to get her wife treated for Covid-19. The partnership deed
provided for 10 % p.a. interest on drawings.
Mohit introduced ₹ 50,000 as additional capital on 31st January 2021 to increase the inventory. The net distributable
profit was ₹ 2,00,000 which was divided between Balwant and Mohit after providing 25 % to general reserve.
a) ₹ 12,000 b) ₹ 2,88,000
c) ₹ 48,000 d) ₹ 96,000
2. Interest on Balwant's drawings will be ₹ ________.
a) 10,000 b) 2,500
c) 5,000 d) 7,500
3. Interest on Mohit's capital will be
c) ₹ 5.000 d) ₹ 20,000
Question No. 4 to 6 are based on the given text. Read the text carefully and answer the questions: [3]
Girish, Vinod, and Ankit formed a partnership on the following terms
I. Profit shall be divided in the ratio of 2: 2: 1.
II. Girish's share of profit is guaranteed to be not less than ₹ 1,25,000 in any year.
III. Ankit gives a guarantee to the effect that the gross fee earned by him for the firm shall not be less than average fees
of preceding four years when he was carrying on the profession alone.
IV. Their capital accounts shall be fixed.
The profits for the first year of partnership are ₹ 2,51,250. The gross fees earned by Ankit for the firm is ₹ 40,000.
Gross fees earned by Ankit during last four years were ₹ 40,000, ₹ 60,000, ₹ 30,000 and ₹ 35,000 respectively. Prepare
profit and loss appropriation account after giving effect to the above
1/6
Download RKG INSTITUTE App for Online Learning
4. What was the amount of deficiency adjusted through Ankit current account?
a) ₹ 1,250 b) ₹ 40,000
a) ₹ 50,500 b) ₹ 42,500
a) ₹ 2,51,250 b) ₹ 2,52,500
a) Profit and Loss A/c Cr. b) Profit and Loss A/c Dr.
To Profit and Loss Appropriation A/c To Reserve A/c
c) Profit and Loss A/c Dr. d) Profit and Loss A/c Dr.
To Profit and Loss Appropriation A/c To capital A/c
10. Mohit and Rohit were partners in a firm with capitals of ₹ 80,000 and ₹ 40,000 respectively. The firm earned a [1]
profit of ₹ 30,000 during the year. Mohit's share in the profit will be:
a) ₹ 18,000 b) ₹ 15,000
c) ₹ 20,000 d) ₹ 10,000
11. Interest on capital will be paid to the partners if provided for in the partnership deed but only out of: [1]
a) Goodwill b) Reserves
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
2/6
Download RKG INSTITUTE App for Online Learning
explanation of A. correct explanation of A.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
3/6
Download RKG INSTITUTE App for Online Learning
iii. R drew ₹6,000 in the middle of every month for 6 months ending 31st March, 2018.
Calculate interest on drawings @ 8% p.a.
21. The firm XYZ earned a profit of ₹2,75,000 during the year ending on 31st March, 2009. 10% of this profit was [1]
to be transferred to general reserve. Pass the necessary journal entry for the same.
22. Mita, Rita and Sandra were partners in a firm, sharing profits and losses in the ratio of 2 : 2 : 1. Mita had [3]
personally guaranteed that in any year Sandra’s share of profit, after allowing interest on capital to all the
partners @5% per annum and charging interest on drawings @4% per annum, would not be less than ₹10,000.
The capitals of the partners on 1st April, 2015 were: Mita ₹80,000, Rita ₹50,000 and Sandra ₹30,000.
The net profit for the year ended 31st March, 2016, before allowing or charging any interest amounted to
₹40,000.
Mita had withdrawn ₹4,000 on 1st April, 2015, while Sandra withdrew ₹5,000 during the year.
You are required to prepare the Profit and Loss Appropriation Account for the year 2015-16.
23. Yadu, Madhu and Vidu are partners sharing profits and losses in the ratio of 2 : 2 : 1. There fixed capitals on [3]
April 01, 2019 were; Yadu ₹ 5,00,000, Madhu ₹ 4,00,000 and Vidhu ₹ 3,50,000. As per the partnership deed,
partners are entitled to interest on capital @ 5% p.a., and Yadu has to be paid a salary of ₹ 2,000 per month
while Vidu would be receiving a commission of ₹ 18,000. Net loss of the firm as per profit and loss account for
the year ending March 31, 2019 amounted to ₹ 75,000 on the basis of above information prepare profit and loss
appropriation account. Prepare profit and loss appropriation account for the year ending March 31, 2019.
24. A, B, C and D are partners sharing profits and losses in the ratio of 4 : 3 : 3 : 2. Their respective fixed capitals on [3]
31st March, 2010 were Rs 60,000, Rs 90,000, Rs 1,20,000 and Rs 90,000 respectively. After preparing the final
accounts for the year ended 31st March, 2010, it was discovered that interest on capital @ 12% per annum was
not allowed and interest on drawings amounting to Rs 2,000, Rs 2,500, Rs 1,500 and Rs 1,000 respectively was
also not charged.
Pass the necessary adjustment journal entry showing your working clearly.
25. A and B are in partnership sharing profits and losses in the ratio of 3 : 2. They decided to admit C, their [4]
manager, as a partner with effect from 1st April, 2016, giving one-fourth share of profits.
C, while a manager, was in receipt of salary of ₹27,000 per annum and a commission of 10% of the net profits
after charging such salary and commission.
In terms of the partnership deed, any excess amount which C will be entitled to receive as a partner over the
amount which would have been due to him if he continued to be the manager, would have to be personally borne
by A out of his share of profit. Profit for the year ended 31st March, 2017, amounted to ₹2,25,000, before
payment of salary and commission.
You are required to show the Profit & Loss Appropriation Account for the year ended 31st March, 2017.
26. A and B are partners sharing profits and losses in the ratio of 3 : 2. Their capital on 31st March 2018 after all [4]
adjustments stood at ₹1,65,500 and ₹1,27,600 respectively.
Profits amounting to ₹50,000 for the year 2017-18 were distributed after allowing interest on drawings @ 12%
p.a. During the year A withdrew ₹15,000 at the beginning of every quarter and B withdrew ₹40,000 during the
year. The partnership deed is silent on interest on drawings but provides for interest on capital @ 5% p.a. Interest
on Capital has not been provided.
Showing your workings clearly, pass the necessary adjustment entry to rectify the above errors.
27. Rahim and Sudesh, the two partners of a business firm, agreed to appropriate the profits of their firm on the [6]
following terms:
4/6
Download RKG INSTITUTE App for Online Learning
i. Interest is payable on capital @ 5% per annum.
ii. Rahim will be entitled to a salary of ₹500 per month.
iii. Loan advanced by a partner to the firm is to carry interest @ 10% per annum.
iv. Interest on drawings to be charged from the partners @ 5% per annum.
v. Sudesh will get commission @ 1% on the sales made during the year.
vi. Rahim is entitled to rent of ₹25,000 per annum for allowing the firm to carry on the business in his premises.
The net profit of the firm for the year ended 31st March, 2019, was ₹1,75,500 before taking into account any of
the above terms.
Rahim Sudesh
Particulars
₹ ₹
Loan taken from the firm on 1st July 2018 @ 12% p.a. 50,000
During the year 2018-19, sales of the firm amounted to ₹7,00,000. From the above information, prepare:
i. Profit and Loss Appropriation Account.
ii. Partner’s Capital Accounts.
iii. Rent Payable Account.
28. Jay, Vijay, and Karan were partners of an architect firm sharing profits in the ratio of 2 : 2 : 1. Their partnership [6]
deed provided the following :
i. A monthly salary of Rs.15,000 each to Jay and Vijay.
ii. Karan was guaranteed a profit of Rs.5,00,000 and Jay guaranteed that he will earn an annual fee of
Rs.2,00,000. Any deficiency arising because of guarantee to Karan will be borne by Jay and Vijay in the ratio
of 3 : 2. During the year ended 31st March 2018, Jay earned fee of Rs.1,75,000 and the profits of the firm
amounted to Rs.15,00,000.
Showing your workings clearly prepare Profit and Loss Appropriation Account and the Capital Account of
Jay, Vijay and Karan for the year ended 31st March 2018.
29. Read the following case study and answer questions: [4]
X and Y are partners in a firm sharing profits and losses equally. On Ist April, 2018, the capitals of the partners
were ₹ 2,00,000 and ₹ 1,50,000 respectively. The profit and loss appropriation account of the firm showed a net
profit of ₹ 3,75,000 for the year ended 31 st March, 2019. The terms of partnership deed provided the following
I. Transfer 10 % of distributable profits to reserve fund.
II. Interest on capitals @ 6% p.a.
III. Interest on drawings @6 % p.a. Drawings being X ₹ 40,000 and Y ₹ 30,000.
The partners decided to provide clean drinking water and build toilets in a nearby school.
i. What is the average period for which Interest on drawings will be calculated?
a. 3
b. 6
c. 9
d. 12
5/6
Download RKG INSTITUTE App for Online Learning
ii. The total interest on capital provided is ________.
a. 9,000
b. 12.000
c. 21,000
d. None of these
iii. The lesser interest on drawings charged (to any of the partner) is ₹ ________.
a. 900
b. 1,200
c. 2,100
d. None of these
6/6
Download RKG INSTITUTE App for Online Learning