|.

110
ACCOUNTING FOR P
you calculate interest on PARTNERSHI P
Q. 12.
the middle ofHow would drawings of
every month? equal
(Ans. When drawings of euual
interest vwould be calculated on theamounts are made in the middle
total amount of drawings f of
Interest on Rate of Interest 6every
Drawings -Total Amount of Drawings x
100 momth
Application based
Q. 13. The following differences have arisen among 4, B
decision regarding the same : and C.
(a) A used 1,00,000 belonging to the firm and made a
speculation. Band Cwant that Ashouldreturn profit
wants to return 1,00,000 only. 1,75,000 to
the
(6) Aused 50,000 belonging to the firm and suffered a
speculation. He wants to return only 30,000. loss of
(c) Aand B want to admit Mohan as a new partner, but Cdoes
not agree.
(d) Aand B want to purchase goods from Raghubir for the firm
agree.
but Cdoes
[Ans. (a) Amust returm 1,75,000; (b) Amust return Z50,000; (c) Mohan
be admitted; (d) Goods may be purchased from Raghubir.]

PRACTICAL QUESTIONS
(Question Nos. 1to 77 are strictly in the serial order of llustrationd
Q. 1.Xand Yare partners in afirm. They do not have any partnership dedR
should be done in the following cases
(a) Xhas invested R10,00,000 and Yonly 5,00,000as capital. Xwants inter
on capital@ 8% p.a.
(b)X spends twice the time that Ydevotes to the business. He wants asalary
Z10,000 per month for the extra time spent by him.
(c) X wants to introduce his son Rajesh into the business for 25% share to.
given out of his share of profits. Yobjects it.
(d) Xhas advanced a loan of 72,00,000 to the firm. He claims interest @%p
(e) Ywithdraws ?10,000 per month from the firm for his personal use. XCar
that interest on drawings @12% p.a. be charged from Y.
(CBSE 20210
|Ans. (a) No interest on capital will be allowed. (6)X is not entitled to any sa
(d)Xisentitledy
(c) X's son cannot be admitted as apartner, if Yobjectsit. bechargeda
claim interest on his loan (@ 6% p.a. (e) Interest cannot
drawings.] undermentiond
Q. 2. Xand Yare partners sharing profits in the ratio of 2: 1. The
trial balance was extracted from their books as at 31st March, 2024 :
ACCOUNTING FOR PARINERSHIP IRMS UNDAMENIALS
Dr Balances Cr Balances

Ns Capital 3,20,000
rsCapital 2,40,000
rsDrawings 40,000
rs Drawings 32,000
Stock (Ist April, 2023) 45,200
Purchases and Sales 8,68,000 12,45,000
Debtors and Creditors 1,52,000 48,000

Buildings 6,00,000
Cash in hand 5,900
Bank Overdraft 27,500
Salaries to Staff 74,700
26,400
Rent
Advertising Expenditure 5,000
31,300
Travelling Expenses
18,80,500 18,80,500

Loss Account and Profit and Loss

You are required to prepare Trading, Profit and 2024 and a Balance Sheet as
Appropriation Accountfor the year ended 3 lst March,
:
on that date. The following adjustments are to be made
64,000.
(i) The value of stock on March 31, 2024 was
10%.
(üi) Charge depreciation on Buildings at
(üi) Provide for outstanding rent 2,400.
Capital (@ 5% and Xis entitled to a salary
(iv) Partners are entitled to interest on
of 48,000 p.a. 1,96.000:
Profit as per Profit & Loss A/c
[Ans. Gross Profit 73,95,800; Net Appropriation A/c
as per Profit & Loss
Profit transferred to Capital Accounts Y2,60,000; Total of Balance Sheet 7,61,900.]
1,20,000; CapitalsX4,24,000 and
and Satish are partners in a firm. Their Capitals onApril 1, 2023 were
Q.3. Girish their
and 4,75,000 respectively. On August 1, 2023 they decided that
5,60,000 necessary adjustment in the Capitals were
Capitals should be 5,00,000 each. The Interest on Capital is allowed at 6% p.a.
cash.
made by introducing or withdrawing Capital for the year ending March 31, 2024.
interest on
You are required to compute 29,500.]
[Ans. Interest on Capitals :
Girish 31,200 and Satish
are partners in a firm. Their Capitals as on April1,2022 were
Q.4. X Yand Z
4,00,000 and 3,00,000 respectively. On July 1, 2022 they introduced
5,00,000; I, 2023
further Capitals of ? 1l,00,000; 80,000 and 50,000 respectively. On February p.a. on the
Capital. Interest is to be allowed a@ 8%
Y withdrew ¿15.000 from his 2023.
for the year ending March 31,
Capitals. Compute interest on Capitals
?46,000; YE36,600 and Z 27,000.]
[Ans. Interest on Capitals :X
Fluctuating Capitals
of
B commenced business with Capitals
Q. 5 (A), On lst April, 2023 A and
 ACCOUNIING EOR PARTNIIRSHIP
HRMS
1.112
2024 the
T6,00,000 and 2,00,000 respeetively. On 3Ist March, Interest net
capiprloafn
2,40,000.
taking into account the provisions of deed) was {60,000 p.a. Theon
of
allowed at 6% p.a. B was entitled to a salary
partners Aand B were 60,000 and 40,000
A being R2,000 and B 1,000. Assuming
respectively. The interest
that 4 and Bare equal
on A rawin g
paraestners,,pr3\eagwsti
Dr
Capital Accounts
Profit & Loss Appropriation A/c and Partner's at \,
2024.
Capitals AR6,41, 500 and B
[Ans. Divisible Profits 1,35,000;
Note : In the absence of information, Capitals 2,98,5001
willbe treated fluctuating
Q. 5(B). Anubha and Kajal enteredinto partnership sharing profits and lo
theratio of 2 : 1. Their capitals were 90,000 and 60,000. The profit during the
were 4S,000. According to partnership deed, both partners are allowed salary,
per month to Anubha and 500 per month to Kajal. Interest is allowed on capia
5% p.a. The drawings during the period were 78,500for Anubha and 6,500fox
partners cabital ,
Interest is to be charged @ 5% p.a. on drawings. Prepare
fluctuating.
assuming that the capitalaccounts are
Anubha F1 0o o.
[Ans. Divisible Profit 23,476; Capital Account balance : 163.1
and Kajal
Kajal 70,162. Interest on Drawings : Anubha 213
six months.
Hint : Interest on Drawings will be charged for
80,000 resnectid.
Q.6. Xand Yare partners with capitals of ?1,00,000and
agre
Ist April, 2022 and their profit sharing ratio is 2 :1. Interest on capitaltheis yeat
for
12% p.a. Yis to be allowed an annual salary of 6,000. The profit
entitled to a commission ofl
31st March, 2023 amounted to 50,000. Manager is
of the profits.
Prepare Profit and Loss Appropriation Account and Capital Accounts.
[Ans. Divisible Profit 17,400; Commission to manager is 10% of R50,00,;
Z5,000. Balances of Capital Accounts:X*1,23,600 and Y1,01,400.]
1:2. Asha is ent
Q. 7. Asha and Lata are partners sharing profits in the ratio of
profit before charging
toa salary of 2,00,000p.a. and a commission of 8% of net chargn:
commission. Lata is entitled to a commission of 8% of net profit after
4u
commission. Net Profit for the year ended 31 st March. 2024 amounted to
Prepare Profit&Loss AppropriationAccount.
[Ans. Share of Profit : Asha 85,600 and Lata I,71,200.)
the ratio of2:3w
Q. 8. Aand Bare partners in afirm sharing profits orlosses in2023.Eachpat
capitals of 4,00,000 and 78,00,000 respectively on lst April, of10%on
entitled to 10% p.a. interest on his capital. Bis entitled a commission ofnetp
commission of8% H
profit before charging any commission. Ais entitledla March,2024
after charging all commissions. Net profit for the year ended 31st
74,80,000.-48000
Prepare Profit and Loss Appropriation Account. Commissionto
[Ans. Share of Profit AZ1,12,000 and B 1,68,000;
and to A 32,000.]
ACCOUNTING FOR PARTNERSHIP HRMS FUNDAMENTALS 1113

Fixed Capitals
0.9. YandZ are partnerswith capitals of 2,50,000 and 1,50,000 respectively
on Ist April. 2023. Eacth partner is entitled to 99% p.a. interest on his capital. Zis
entitled to a salary of 60,000 p.a. together with a commission of 6% of Net Profit
after charging his commission. Net profit for the year ended 31st March, 2024 amount
to 2,12,000. Prepare Partner's Capital Accounts : () when capitals are fixed, and (ii)
when capitals are fluctuating.
JAns. Divisible Profits 1,04,000; Commission to Z 212,000.
(i) When capitals are fixed :
Current A/c balances:Y74,500 (Cr.); Z1,37,500 (Cr.)
Capital Ac balances :Y2,50,000(Cr.); Z1,50,000 (Cr.)
(0) When capitals are fluctuating :
Capital A/c balances :YR3,24,500(Cr.); Z 2,87,500 (Cr.))
Hint : When the profit sharing ratio of thepartners is not given in the question, the profits
willbe shared equally.
Q. 10. A, Band C were partners in a firm having capitals of 2,00,000; ?2,00,000
and 80,000 respectively on Ist April., 2022. Their Current Account balances were A:
F20,000; B: 10,000 and C:*5,000 (Dr.). According to the partnership deed the
partners were entitled to interest on capital @10% p.a. Bbeing the working partner
was also entitled to a salary of 76,000 per quarter. The profits were to be divided as
follows :
(a) The first 60,000 in proportion to their capitals.
(b) Next 1,00,000 in the ratio of 4:3:1.
(c) Remaining profits to be shared equally.
The firm made aprofit of 2, 80,000 for the year ended 31st March, 2023 before
charging any of the above items. Prepare the Profit &Loss Appropriation Account and
pass necessary journal entry for apportionment of profits.
[Ans. Share of Profit :4291,000; B 78,500 and C38,500.]
Interest on Loan by Partner to the Firm
0. 11, 4, B and C entered into partnership on lst April 2022 with capitals of
10,00,000, 8,00,000 and 5,00,000 respectively. On Ist July 2022, B advanced
2,00,000 and on lst December 2022 Cadvanced ?1,00,000 by way of loans tothe
firm.
The Profit and Loss Account for the year ended 31.3.2023 disclosed a profit of
7,70,000but the partners could not agree upon the rate of interest on loans and the
profit sharing ratio. Prepare partner's Capital A/cs and Loan A/cs.
[Ans, Balance of Capital A/cs A12,53,000, B 10,53,000 and C 7,53,000.1
Hint : In the absence of agreement, Interest on loan is to be paid @6% p.a. and profit will
be shared equally.
0. 12, Aruand Esha are partners sharing profits equally. Esha had
4.00.000 to the firm on 1st October 2023 and it was agreed that interestgiven loan of
will be noid
 HRMS
ACCOUNTINGFOR PARTNERSHIP

chequeHUNOAMEonNTAL2h
1114 by
Fcbruary 2024 was paid ACCOUNTING6FOR PARINERSHIP FIRMS
Interest on Esha's L0an upto FUNDAMENTAS 1115
@9% p.a. to be paid.
March 2024 and balance was yet ended31st March, 2024. (i)Allowing interest on Raj's capital.
entries for interest on loanfor the year
Pass journal February 2024 i) Charging interest on Mehak's drawings.
Loan by Esha upto 15,000;
(ARs Interest paid on I8000.]
transferred to Profit &Los A/c
Q13 Lata and Mamta are partners with capitals of 3,00,000 and 2,00,0%
Interest (i) Providing interest on loan given to the fim by Divya.
Also pass transter entries in the Profit and Loss Account / Profit and Loss
During the year
Lata 70% and Mamta 30%.
profitsa asprofit ended 3 Appropriation Account, as the case may be. (C.B.S.E. 2023, Kerala, M.P)
March 2024 sharing
respectively thev eamed of 2,26,440 before allowing interest on partner'
[Ans. Interest on Raj's Capital 48,000; Interest on Mehak's Drawings 1,200
as follows: andInterest on Divya's Loan 1,500.1
loan. The terms of partnership are
be allowed (@ 7% p.a.
() Interest on Capital is to
2,500 per month.
(ü) Lata to get a salary of Interest on Loan by the Firm to Partner
(ü) Interest on Loan by Mamta to the Firn of 80,000 for the whole veo
(^) Interest on drawings of partners at 8% per annum. Drawings being LLata 0. 16. A, Band Care partners in a firm sharing profits and losses equally. On lst
April. 2023 their fixed capitals were 8,00,000, T6,00,000 and 6,00,000
36,000 and Mamta 48,000. respectively.On lst October 2023, Aadvanced I,00,000 to the firm whereas Ctook
General Resem
()/10th of the distributable profit should be transferred to aloan of ?1,50,000 from the firm on the same date. It was agreed among the partners
that C willpay interest @10% p.a.
Prepare the Profit and Loss Appropriation Account.
Profit for the year ended 31st March, 2024 amounted to 74.20,000 before allowing
[Ans. Share of Profit : Lata 1,00,800 and Mamta 43,200.1 or charging interest on loans. Pass journal entries for interest on loans and prepare
Hints : () Interest on Loan will be calculated at 6% p.a. Current Accounts of the partners.
(u) Interest on Drawings will be calculated for an average period of 6 months [Ans. Divisible Profit 24,24,500; Current Account Balances : A ?I,41,500 (Cr.);
(ii) Transfer to General Reserve will be 10% of net profit, i.e., 10% of 1,60.000= B1,41,500 (Cr.) and C1,34,000 (Cr.)
TI6,000.
Hint. Interest on Loan byAwill not be credited to his Current Account. It will be credited
to his Loan A/c.
Q. 44B and C are partners sharing the profits and losses in the ratio of
2:3:5. On Ist July, 2023, A and B granted loans of 2,00,000 and I,00.000
respectively to the firm. Show the distribution of profits/losses for the year ended 31st 0. 17, Krish and Tarun were partners in a fim. Firm gave a loan of ?5,00,000 to
March 2024, in the following cases Tarun on Ist September 2023. Interest was agreed to be charged at 9% p.a. Tarun paid
Case (a) If the profits before interest for the year interest upto 31st January 2024 by cheque on 4th February 2024 and balance was yet
amounted toR7,500. to be paid by him.
(b) If the loss before interest for the year amounted to
7,500. Pass journalentries for interest on loan to partner for the year ending 31st March,
[Ans. Case (a) Share of Loss A1,200; B R1,800 and C 2024.
Case (b) Share of Loss A4,200; B 76,300 3,000;
and C10,500;]1 [Ans, Interest received on loan to Tarun upto 31st Jan. 2024 18,750; Interest
Q. 15. Raj, Mehak and Divya transferred to Profit & Loss A/c (26,250.]
the ratio of 2: 2: 1. Their were partners in a firm sharing profits and losses in
2,00,000. The partnership deedrespective capitals were : 76,00,000, 4,00,000 and 0.18. Hemant and Sameer are partners in a firm. On lst December 2023, Hemant
(a) Interest on capital @ provided for the following: gave a loan to the firm of 75,00,000. On the same date, the firm gave a loan of
8% per annum.
(b) Interest on {2,00,000 to Sameer. They do not have an agreement as to interest.
drawings @6% per annum. Firm earned a profit of 3,70,000 (before any interest) for the year ended 31st
(c) Interest on
partner's loan to the firm @5% per March, 2024. Pass journal entries for interest on loans and distribution of profit for the
During the year, annum.
withdrew R60,000 onRajlst had withdrawn 12,000on Ist October, 2021, while
year ended 31st March, 2024.
On Ist January, 2022,December, 2021. Menas [Ans,Share of Profit|,80,000each.]
Pass the necessary Divya had given a loan of 1.20,000 to the firm. Hints :
journal entries in the books of the
transactions for the year ended () Interest on Loan by Hemant willbe provided (@ 6% p.a.
3lst March, 2022: firm for the
followins (ii) Interest on Loan by Sameer will not be charged.
 ACCOUNTING FOR PARTNERSHIP FIRMS -
1.116

Rent Paid or Payable to

a Partner
sharing profits equally.
FUNOAMEN ACCOUNTING FOR PARTNERSHIP FIRMS FUNDAMENTAL
The firm incurred a loss of 60,000
S
during the vear ended 31st March, 2024
1.117

are partners in a firm Siya before above adjustments. You are required to prepare
an account showing the
from
Q. 19. Kia and Siya firm on a monthly rent of 25,(000. The
on rent
April 2023
her property
to firm has gve
to January 2024 by cheque on 10th February 2024. Rent forpaidthehermont
the distribution of profit/loss.
IAns. Share of Loss A 18,400 and B 36,800.]
was yet to be paid. in case of loss, it will be
of February and March for the year ended Although Profit & Loss Appropriation A/c is not prepared
is to be credited to this account.
for the above transactions
Note :
Pass the jourmal entries 31st Mareh prepared in this question because interest on drawings
2024.
2,50,000; Rent Alc Profit
[Ans. Rent paid upto January
2024 transferred to
Profit When Appropriations are more than available losses in the ratio of 3:2
Loss A/c 3,00,000.] Yare partners in a fim sharing profits and
0. 23. X and
respectively. As per the partnership deed,
0. 20, Radha and Rukmani are partners
in a firm with fixed capitals of with capitals of ?10,00,000 and 5,00,000
@8% p.a. The net profit for the year ended
and 3,00,000 respectively. 2,00,0 they are to be allowed interest on capital
interest on capital amounted to 45,000.
Show
31st March, 2023 before providing for
They share profits in the ratio of 1:2. Both partners are cntitled to on interest the distribution of profit.
entitled to a salary of
capitals(@ 8% per annum. In addition, Rukmani is and Y Z15,000.]
month. Business is being carried fronm the property owned by Radha on a yearly pa 20,,000 IAns. Interest on capital allowed to X {30,000
of ?1,20,000. Net Profit for the year ended 3Ist March 2024 before providing f Interest on Drawings
following
was ?5,50,000.
). 24 (A). Mr. Ashok Gupta is a partner in a fim. He withdrewthe
You are required to draw Profit & Loss Appropriation Account for the year endl during the year ended 3Ist March, 2024
amounts
31st March, 2024.
8,000
[Ans. Share of Profit transferred to Radha's Current Alc 250,000 and Rukmany April 30
6,000
June 30
Current A/c 1,00,000.] 5,000
Sept. 30
12,000
Dec. 31
In Case of Loss to Firm Jan. 31 10,000
Q. 21. A and B are partners sharing profits and loss in the ratio of their capitals on drawings @ 9% p.a. for the year ended on 31st March, 2024.
Calculate interest
which were 6,00,000 and 4,00,000 respectively on Ist April 2023. The partnership
deed provides that: [Ans. Interest on Drawings ?1,710.] A's
Q. 24 (B). A is a partner in a fim.
During the year ended 31st March, 2024,
(i) Both partners will get monthly salary of 20,000 each:
drawings were
(in) Interest on capital will be allowed (@ 8% p.a.;
Ist June 1,000
(iüi) Awill get a quarterly rent of 24,000 for the use of his 750
property by the rin. Ist August
On Ist July, 2023 Aand B granted loans of RI.00,000 and Ist October 1,250
the firm. During the year ended 3 1st 50,000 respectively to S00
before any adjustment is made as per March 2024, the firm incurred a loss of 17,20
Ist December
500
Ist February
partnership deed. Calculate interest on drawings
Prepare an account showing the distribution of Interest on drawings is charged @ 10% per annum.
[Ans. Share of LoSs: A72,000 and B profit/loss. of Afor the year ended 3lst March, 2024.
Hint: Salary to Partners and 48,000.1 [Ans. Interest on Drawings 221.]
interest on capitals will not be provided and P&LApp. Alc will
not be prepared since the and losses equally with capitals of
firm has sufferred loss. Q. 25. Aand B are partners sharing profits the year ending on 31st
Q. 22. A and Bare
partners in a firm :2. Their (3,00,000 and 2,00,000 respectively. Their drawings during
capitals on lst April 2023 were sharing profits in ratio offl
4,00,000 and T6,00,000therespectively· eto
March, 2023 are as follows :
partnership deed, Ais get a
be provided @10% to monthly salary of 15,000 and 20,000
p.a. and charged on interest on capitals A's drawings on 30-06-2022
withdrew
30,000 and B withdrew drawings @12% p.a. During the yeear A
?50,000.
31-07-2022 10,000
 ACCOUNTING FOR PARTNERSHIP FIRMS
1118

B drew R6,000 at the

01-10-2022
01-03-2023
end of each month. The
10,000
16,000
deed provides
drawinos
F
interest
UNOAMENTY
on
ACCOUNTING FOR PAARTNERSHIP FIRMS -
FUNDAMENTALS
0. 29 (A). Gupta 1s a partner in a firm. He drew regularly 800 at the beginning
119

interest on capitals and

drawings at 10% p.a. Calculate
and [Ans. Interest on Capitals A 30,000; B 20,000, Interest on Drawings. cajita of every month lor ne six months ending 31st March, 2024. Calculate interest on
drawings at 15% p.a.
[Ans, Interest on Drawings 210.]
B3,300.]
Q. 26 (A). Gopal is a partner ina firm. He withdrew 1,000 p.m. regularly Q. 29 (B). Gupta is a partner in a firm. He drew regularly T800 at the end of every
year ended 31st March. 20d month for the six months ending 31st March, 2024. Calculate interest on drawings at
first day of every month during the 15% p.a.

interesptersonona
charged (@ 15% p.a. calculate the
expenses. If interest on drawings is [Ans. Interest on Drawings ?150.]
drawings of Gopal.
0. 29 (C). A, B and C are partners in a firm. For six months ending 31st March,
[Ans. Interest on Drawings ?975.] 2024 :
0. 26(B). X, Yand Z are partners in a firm.
You are informed that (í)
X Adrew regularly ?15,000 in the beginning of every month. B drew regularly
74.000 from the firm at the beginning of every month, (i) Ydraws dram
firm at the end ofevery month, and (iii) Z draws ?4,000 from the ?4,000
from
firm in the t
20,000 at the end of every month and C drew regularly 25,000 in the middle of
every month.

intmierdedlste
every month. Interest on drawings is to be charged a 9°o p.a. Calculate o Calculate interest on drawings @ 10% p.a. for six months ending 3Ist March,
partner's drawings. on 2024.
[Ans. Interest on Drawings X?2,340; Y?1,980 and Z 2, 160.] [Ans. Interest on Drawings : A2,625; B2,500 and C3,750.]
0. 27. Calculate the interest on drawings of Mr. Aditya u 8°%o p.a. for 0. 30. Calculate interest on A's drawings:
ended 3Ist March, 2024, in each of the following alternative cases the yex ()If he has withdrawn 60,000 on lst October, 2022 and rate of interest on
Case (i) If he withdrew ?5,000in the beginning of cach quarter. drawings is 8% per annum.
(ii) If he withdrew 6,000 at the end of each quarter. (i) If he has withdrawn 760,000 on Ist Oetober, 2022 and rate of interest on
(iii) If he withdrew ?10,000 during the middle of each quarter. drawings is 8%.
[Ans. Case (i) ?1,000; Case (ii) 2720; Case (iii) 1,600| Books are closed on 3Ist March, 2023.
0. 28. Calculate the interest on drawings of Sh. Ganesh a 9°o p.a. [Ans. Case (i) ?2,400; Case (ii) 4,800.]
for the vear
ended 31st March, 2024, in each of the following alternative cases 0. 31.Calculate the amount of Era's monthly drawings for the year ended 3Ist
Case (i) If he withdrew 74,000 p.m. in the beginning of every month, March,2023 in the following cases when interest is charged on drawings @10% p.a.
(ii) 1f he withdrew ?S,000p.m. at the end of every () When she withdrew a fixed amount in the beginning of each month and
month.. interest on drawings is 5,200.
(iü) lf he withdrew 6,000 p.m: (ii) When she withdrew a fixed amount at the end of each month and interest on
(iv) 1f he withdrew 72,000 during the year: drawings is 26,600.
(v) If he withdrew as follows: [Ans. Case (i) 8,000 per month; Case (ii) 212,000 per month.]
30th April, 2023 Q. 32. Sneha is a partner in a fim. Calculate the amount of Sneha's quarterly
Ist July, 2023 10,000 drawings for the year ended 3Ist March, 2023, in the following cases when interest is
Ist Oct., 2023 15,000 charged (@ 10% p.a.
30th Nov., 2023 18,000 (i) When she withdrew afixed amount in the beginning of each quarter and
31st March, 2024 12,000 interest on drawings is 3,750.
20,000
(vi) If he withdrew ?12,000 in (ii) When she withdrew a fixed amount at the end of each quarter and interest on
the beginning of each drawings is 3,000.
(vil) 1f he withdrew ?18,000 at the quarter;
end of each quarter; [Ans. Case (i) 15,000 per quarter; Case (ii) 20,000 per quarter.]
(viii) If he withdrew ?18,000
[Ans. Case (i) during the middle of each quarter. withdrew 25,000
Q. 33. (i) Anamika and Monika are partners in a firm. Anamika calculated 28.250
(v) 2,340; Case (ii) 2,475;Case (in) ?3.240: at the end of each month and interest on drawings was
3,008; Case (vi) 2,700; Case (vii) 2,430; Case (viii) Case (iv)? 3,240; Ca at the end of the year. What is the rate of interest on
drawings?
3,240.]
 annum. capitals
2:3 in and netprovided
interest respective Loss allowed capitals, Show 3:2 They Case Case involves profits profits losses the of 1.120
government division profit Q. |Ans. vear
capitals
the
and 0.37. (Ans, Pass A Q. [Ans. (v) ( n ) If (üi) () |Ans.
the anddecide 35. (v) (ii) for (i ) lf Q.34N'
During
interest of necessary capital of
on
interest 36. 8,400 Indistribution
even and
th e Loss Profit
Case
the the If
for for
the the the the the thelf the
lf are following of (i)
On Net of the fixed P first if(|) to A partnership Case
and fir m 79,000.
vear partnership s0,000and and
10,00,000
the 1-4-2022, Loss
girls profiUloss and and it profit allow X1,200, partnership year year end enShrut
d i
allowed
year
firm
wil on
capitals involvesWhere
case,
B B*2,800, X (i in partnershippartnership are alternative () of of
schoolstransferred
journal for capital 5,600.] of
contribute
for
interest Profit ) loss are are l'are
6%the each and
be were Interest 6,000.
ended and the thereprofits th e and 3,000. 79,000. p.a. year. Gayatri
on Brij amongentries allowed Y
deed R30,0partners
00 and quarter
year were
partners
the
*600.] 6,000,Y? X deed provides deedfor
capital in and @ is
year the deed deed cases
3.2023,15,00,000 the to 12% on firm 4,00,000 on 1,400;
a (I) is
asremote NandanCurrent
the ended 10,00,000
partners. the
in fully Capital clearWhere capital
in 42,000
provides
profits
Capital provides(@silent :sharing
provides
is
Capitalon Case What and are
respectively.Interest
p.a. in Case Y is
the partens
provided even loss. (ii) interest
the books ls t 3 a agreement 3,000; for for as
respectively. The
firm
entered
areas
Accounts
March, if and
firm A there (@ and (i) the for for to 7%rate ACCOUNTINGFOR
the
partnership 24,000 before 8% Interest the
in of will it sharing 3,00,000
is p.a. Interest year Interest Interest Interest profits
p.a.] ofon in
Show
earned the
P31,500
into
of :
the
2018
firm result6,00,000.
that no
allowingTheir
Case
are
Interest drawings firm. a
interest
tnership
Utarakhand.
a
Their
partnershippar
was profits
and agreement the on(ii)3,000. onCapitalon @ on on the and PARTNERSHIP
FIRMS
allowing into deed B18,000. Capital Loss Capital respectively losses withdrew
Shruti
profit interest respective on
distribution onwas
calculated
profit (C.B.S.E.
Keral
2019,a) Capital
and 1,50,00. further a The in for Capital drawings?
of
Deed to interest on loss except X X a thein
They 3:1 oninterest
,000. sharing construct partnership
to ?1,875, 6% @
Incapitals share as 4,000, 6% 6% and 2:lw
ratio
was i0,500.) the
provide ratio. second for their p.a.
p.6%
a. ofof
contributed
12% ratio 1
fin. interest on of
wil capitalsprofitiscapitals YRI,12, 200 Y even
p.a. p.a. heht profts 26300a0 FUNOAMEN
per was to ilets capital
uadc Inu cast, and h. and and profits in
be on ifi te t i ex

partner.
eachbyhow increaseswithdraws contributes Account
introduces ?2,160.]
Current be were @15%
Profit for They Their against profits. alternative cases sharing 31.3.2023.
againstinterest ended ACCOUNTING
partnershipclosed
protit
Passbeginning
the Case
[Ans.
Q.38. IAns. Prepare
Q. [Ans. During
the Q. Ans.allowed 0. Hint:
necessarysharing and year agreed
3,000 per fixed 39.
off, 41. partners 40, (iüi) (ii) (i) (iii) (ii) () profits. on
profits
of it
After Profit the 30,000
it
by 75,000 On Net even Loss ended annum. capitals Lalan Interest capitals KavitaInterest Profit FOR
agreement the and to Share ShareShare If If Ilf PARTNERSHIP
adjusting ratio yeardiscovered isthe sharing should year760,000 90,000 Ist Appropriation Loss if
the S,000 31st The
allow and on
lossprofit profit Prepare &
and on
was ended atfirstat April, on of of of for for for shalllosses Capital and
Adjustments
stood has accounts atthe first
attransferred firm
March, firm interest Balan Capital Loss:
Ist Loss: Profit the
Leela Loss
entry 2: as ratio divide
3Ist the April, year
the the relevant be in FIRMS
1:1. been that end and
but 2023 respectively.
incurs earned on wer e wil
Kavita :Kavita
Kavita year year provided the are Appropriation
:
atfollows of of thMarch, is end
increases Account 2024. be is is is partners Brij FUNDAMENTALS -
ratio
the omittedinterest the X, of X, to a capital 2023partners
Instead withdraws30,000 YLalan's loss.
in Yand amount seven eight
of
Theprofit, a recorded
R30,000;
Z60,000; 20,000; 10,00035,000
account Z80,000
beginning :partnership
A 2024, of were 7 7
1,10,000 (@ 8% of
8,00,000; of to on the Z= onmonths. it and Showing
Lalan drawings (@12%% in 2:with
months. to
be
altering capitals Closed3:3:4.) Z before : a in to p.a. capitals1. and Account
ofrecorded. the they 90,000 started Current and perLalan firm Profit Leela LeelaLeela allocate Their Nandan
the have basis make al sharing and
Z Balan. you ofannum & of
next the B @8%Accounts brings at at aAccount Lal anabove 1,00,000 30,000]
Loss 15,000 I0,000 partnership it of
4,00,000; Their been
Balance of a
net the
the business calculations the 76,00,000
is Bri j
year. effective The and and profits Account toI,20,000.) and
p.adrawn
. profit inend end adjustments, profit be
Sheet C as capital 75,000 of 3,240 interest Balan charge to and Nandan
of of in in treated deed and
up capital four Balan the since in
3,00,000. it provided and
accounts 742,000. partnership. siX clearly,
onduring the provides
4,00,000
is months,
atmonths. and of on ratio it as for
decided the employed capital 2,00,000. is following
first Balan's prepare 30,000 drawings
the a a the
Their at books in Show of3:2. charge charge
wil year that and year 1121
to the the but but
YX
 ACCOUNTING FOR PARTNERSHIPIRMS
1

You are required to give the neccessary journal

entry.
6.000
FUNDAMENT ACCOUNTING FOR PARTNERSHIP FIRMS FUNDAMENTALS 123

Dr.
[Ans. Cs Capital Ac 4,000 0. 47. Aand B were partners sharing profits in 2:lratio. During the year ended
of
To 4'sCapital A/c 2st March, 2023, A's drawings were 50,000 per month drawn in the beginning
2,000 ] every month and B's drawings were 725,000 per month drawn at the end of every
To B's Capital A/c in2:2:1: 1. that interest on 4's
the profit CandD
B. vear
Q. 42.for4.,the ending partners sharing
are 3lst
profits They
March 2023, 79,00,000 without providing for the distributed month. After the preparation of final accounts, it was discovered
drawings (@ 12% p.a. was not taken into consideration. Give the
necessary adjusting
2023.
entry on Ist April,
following : [Ans. A's Capital A/c Dr. 13,000
month.
()Salary to A(@ 15,000 per To B's Capital A/c 13.000]
per quarter to each partner. for two years
(i) Salar to BandD@30,000 0. 48. Anil, Sunil and Sanjay have omitted interest on Capitals
Anil <8,00,000,
capitals in two years were
Give necessary adjusting journal entry. ended on 31st March, 2023. Their fixed Capital is 10% p.a. Their
Dr. 20,000 Sanjay 3,00,000. Rate of interest on
[Ans. B's Capital Alc Sunil 7,00,000 and
70,000 and in second year 3:2:1.
Cs Capital A/c Dr. profit Sharing ratios were in first year 4:3:2
40,000 next year.
ToA's Capital Alc Give necessary adjusting entry at the beginning of
50,000] debited by ?10,000 each and Current
To D's Capital A/c [Ans. Current A/cs of Anil & Sanjay will be
0. 43. A. B and Care partners sharing
profits and losses in the ratio of I .., Alcof Sunil willbe Credited by 20,000.]
Thev have omitted interest on capital @8% p.a. for two
March 20
years ended 31st profits in the ratio of 2: l:1. Their capitals
0. 49. P, Q and Rare partners sharing of
Their fixed capitals were 4,00,000, 6,00,000 and 8,00,000
respectively. Pass th 30,000 and 20,000 respectively. At the end
as on Ist April, 2023 were S0,000, found out that interest on capitals (@ 12% p.a.
necessary adjusting entry.
16,000 the year ending31st March, 2024 it was
RZ1,000 per month were not adjusted
from the
Dr.
[Ans. C's Current A/c salaries to P, ?500 per month and year for above adjustments.
16,000] in the next
To A's Current Ac profits. Show adjusting entry to be made
debited by 3,000and 3,900 respectively;
0. 4. Asha, Suman and Verka were partners in a firm, their Capitals were JAns. Capital A/cs of Pand willbe 76,900.1
79,00,000. 7,00,000and 4,00,000 respectively as on Ist April 2022. Net proft for and Capital A/c ofR will be
credited by
the vear ended 31st March 2023 was 1,20,000 which was distributed without were 4,00,000 and
2022 the Capitals of A and B
Q. 50 (A). On lst April, the year
providing for interest on Capital (@ 8% p.a. as per partnership deed. in their capital ratio. Profits for
2,00,000 respectively. They divided profits been duly distributed among the
73,00,000 which have
Pass necessary adjustment entry. ended 31st March, 2023 were not passed through the books
were
|Ans. Verka's Capital Alc Dr. 16,000 partners, but the following transactions
To Asha's Capital A/c 14,000 (a) Interest on Capitals @ 12% p.a.
To Suman's Capital Alc 2,000] I2,000; B 10,000.
(b) Interest on Drawings A
Hint. Interest on Capital is in excess of net profit. Commission due to B 20,000 on a special transaction.
(c)
Q. 45. 4, Band Care partners sharing profits and losses in the ratio of 5:3:1. (d) A is to be paid a salary of
50,000.
which will not affect
After the final accounts have been prepared, it was discovered that interest on
pass a journal entry on 10th April, 2023
drawings had not been taken into consideration. The interest on drawing of partners You are required to the errors.
at the same time willrectify
amounted to AR8,000, B6,000 and C14,000. Give the necessary adjusting journal the P & L Alc of the firm and
Dr. 6,000
entry [Ans. B's Capital Alc 6,000]
[Ans. C'sCapital A/c Dr.
To A's Capital A/c
2,000 of
sharing profits in the ratio
To A's Capital A/c 2,000] 50 (B). Kumar and Raja were partners in a fim and Raja ?4,00,000. The
Q. Kumar ?9,00,000
Q. 46. A, B, Cand Dare partners sharing profits and Josses in 2:2:5:
7:3. Their fixed capitals were : year was distributed
respectively. After the accounts of the year had been closed. it was found that interes following but the profit for the
partnership deed provided for the
on drawings @ 6% p.a. has not been taken into
consideration, The
partners were : A*20,000; B 24,000; C32,000 and D 44.000, Givedrawings of u without providing for :
9% per annum.
adjusting entry. the necesSaly () Interest on capital (@ year and Raja's salary
3,000 per month.
salary 50,000 per
[Ans. D's Capital Alc (i)Kumar's 2,78,000.
Dr. 240 ended 31.3.2023 was
To A's Capital A/c 120 The profit for the year
ToC's Capital A/c
120]

I6000
 ACCOUNTING FOR PARTNERSHIP FIRMS
1.124

Pass the adjustment entry.

[Ans.
Kumar's Current A/c
Dr.11,100
FUNOAMENAL ACCOUNTING FOR PARTNERSHIP FIRMS
In
FUNDAMENTALS

asalary of 75,000 per

capital (a@ 5% p.a. additionA was also entitledto draw net profits for the year ending
1.125

month.
Raja's Current A/c Cwas entitled to a commiss1on of 5% on net profits. The
Q. S1. 4. Band ToCare partners sharing profits in the ratio of2:22:1.Their 31st March, 2024 were 3,60,000 distributed in the
ratio of their capitals without
ratio
to be sharedin the
and 1,00,000 respectively. Net profit the
for providingfor any of the above adjustments. The profits were
capitals were 74,00,000, 2,50,000 3:5. Pass the necessary adjustment entry showing the workings
clearly.
March. 2023 amounted to 2,20,000 which was distributed yea
ending 31st
providing for the following :
C?10,000 per quarter.
withou [Ans. B's Capital A/c
C's Capital A/c
Dr.
Dr.
34,400
21,000
(i)Salary to B E5,000 p.m. and to To A's Capital A/c 55,400]
(i) Interest on capital @6% p.a. sharing profits and losses in the ratio
net profit after charging such 0. 55. X, Yand Z are partners in a firm respectively. For
(im) Commission to Manager (@10% on 1,25,000
Pass necessary rectifying entry.
commis ion s:3:2.Their capitals (fixed) are 2,00,000;
the vear ended 31st March, 2024 interest
on
71,50,000:
capital was credited to them @ 8% instead
Dr. 42,000 of 10%.
[Ans. A's Current A/c
ToB's Current Ac Give adjusting jourmal entry.
ToC's Current A/c 9,000 IAns. Xrs Current Alc will be debited by
750: Yand Z's Current A/cs will be
To Manager's Commission Outstanding Alc 13,000 credited by 150 and 600 respectively.]
H-Mo. 52, (Distribution of Profit in Wrong Ratio) Suresh and Ramesh were narb
20,0) 0. 56. A, B and Care partners in a
firm sharing profits and losses in the
3,00,000
ratio of
respectively.
2,00,000 and
in a firm sharing profits in the ratio of3 : 2. Their fixed capitals were 4:3:3. Their fixed capitals were 1,00,000, capital was credited to them (@ 10%
79,00,000 and Ramesh 76,00,000. The partnership deed provided for the following. interest on
For the year ended 31st March, 2024 journal entry.
(i) Interest on capital (@ 5% per annum. instead of 9% p.a. Pass the necessary adjusting
B's Current A/c Dr. 200
(i) T60,000 per annum salary to Suresh and salary 2,000 per month to Ramesh. [Ans. 1.200
C's CurTent A/c Dr.
The profit earned by the firm for the year ended 31-3-2024 was 2,34,000. To A's Current A/c 1,400]
The profits were divided equally without providing for the above. capitals are fixed, Current Accounts will be debited or credited.
Note : Since the :2:3.Awithdrew
Pass adjustment entry sharing profits in the ratio of 1
Q. 57. A, Band C were partners during the year and C withdrew
?15,000
60,000
[Ans. Ramesh's Current Ac Dr. 33,000 75,000 every month, withdrew the year ending 31st March 2024,
discovered that for
To Suresh's Current A/c 33,0| during each quarter. It was no provision for interest
8% p.a. whereas there is
0. 53, (Distribution of Profit in Wrong Ratio) 4, B and C were partners in a interest on drawings was charged (@
necessary rectifying entry.
firm. On 1-4-2022 their capitals stood at 5,00,000, 2,50,000 and 2,50,000 on drawings in the partnership deed. Pass
respectively. As per the provisions of the partnership deed : C's CapitalA/c Dr. 1,200
(Ans. 1,200]
(a) C was entitled for a salary of 10,000 p.m. To A'sCapital A/c
2,400.
(b) Partners were entitled to interest on capital at 5% p.a. Hint : Interest on each partner's drawings books
accounts of a partnership have been drawn up and the
(c) Profits were to be shared in the ratios of Q. 58. After the March, 2023 and 2024, interest
capitals. closedoff, it is discovered that for the
years ended 31st
The net profit for the year ended 31.3.2023 of upon their capitals at 5% per
annum although, no
without providing for the above terms. 3.30.000 was divided equaly has been credited to the partners
partnership agreement.
Pass an adjustment entry to rectify the provision for interest is made in the
[Ans. above error. The amounts involved are : Interest Credited
A's Capital A/c
Dr. 5,000 A B
B's Capital Alc Dr.
Year
To C'sCapital Alc 57,500
4,200 2,400 1,320
Q. 54. 62,500] 2023
4,320 2,520 1,320
(Distribution
firm. Their capitals were A
of Profit in Wrong
Ratio) 4, B andC were partnes 2024 on lst April, 2024, if the
through adjusting entry as3:4:3.
profits
1st April, 2023. 1,00,000, B 2,00,000 and C3,00,000 You are required to put2023. 2:2: 1 and in 2024,
According to the partnership deed they were entitled torespectivey were shared as follows in
an interest
 ACCOUNTING FOR PARTNERSHIP FIRMS

|Ans. A's Capital Ac

loB's Capital Ae
ToCs Capital A/c
Dr. 2,904
1,512
1,392)
FUNOAMEN ACCOUNTING FOR PARTNERSHIP
EIRMS FUNDAMENTALS

0. 61. Assuming the capitals are fixed in Ouestion 60 (A), (B) and (C). give the
sharing profits in the necessary adjusting journal entry.
Q. S9. Sachin, Kapil and Rashmi have been ratio
resptivelh. Rashmi wants that she should
Kapil and she further wants that change
share profits equally along with
in profit sharing ratio should
be Sofach3in:a2n: [Ans.
(A) Anil'sCurrent Alc
To Mohan's Current A/c
Dr. 450
450

etrospectiveh for the last three years. Other partners

protits for the last three vears were 60,000,
have no
747,000 and obijection toap icable
55,000. this. The (B) A's Current A/c
C's Curent A/c
Dr.
Dr.
245
108
adjustment bv means of a joumal entry.
Sachin's Capital A/c Dr. 27,000
Record the To B's Current Ac
800
353

|Ans. (C) A's Current A/c Dr.

To Rashmi's CapitalA/c 27,000] To B's Current A/c 800]
0. 60 (A), Mohan. Vijay and Anil are partners, their capitals on 3Ist showed credit balances of 5,00,000,
March 2024 0. 62. The capital accounts of A, B and C drawings and net
after adjustments of drawings and profits were ?30,000, 25.000 and account
3.00,000 and ?2,00,000 respectively, after taking into I:1. The drawings of the
respectively. Profits for the year ending 31st March 2024 were 20,0 shared profits in the ratio of 2:
drawings were 5.000(Mohan); 4,000(Vijay) and 3,000 (Anil) for the {24,000. Their profit of3,00,000. They
were :
partners during the year 2023-24
3lst March. 2024. Subsequently the following omissions were noticed year
and endi
it ng (i) Awithdrew ?10,000 at the beginning of each half year.
decided tobring them into Account. (ii) B withdrew ?10,000 at the end of each half year.
() Interest on Capital at 10%p.a. (iii) C's Drawings were:
(ü) Interest on Drawings Mohan 250, Vijay 200 and Anil 150.
lst May, 2023 6,000
Make the necessary journal entry and prepare Capital Accounts of Partner's Ist October, 2023 5,000
[Ans. Opening Capitals Mohan 27,000, Vijay 21,000, Anil 15,000: Dr 31st Dec. 2023 4,000
Anil's Capital by 550 and Cr. Mohan's Capital by 550. Adjusted Capital accounts 31st March, 2024 5,000
balances Mohan 30,550; Vijay <25,000; Anil 19,450.] 8% p.a. and interest on partners
Calculate interest on partners' capitals @
Q. 60 (B). The capitals of A, BandC stood at 20,000, 15,000 and I0.000 for the year ended 3Ist March, 2024.
drawings @ 10% p.a.
respectively after the necessary adjustment in respect of drawings and net profits. 29,600; B19,600 and Cil,600.
Subsequently, it was discovered that interest on capital at 10% p.a. and interest on [Ans. Interest on Capitals A 1,500; B 500 and C 2900.]
Interest on Drawings A
drawings R130, 790 and 50 respectively have been ignored. Profit of the year
adjusted was ?10,000. Drawings of the partners were ?1,000, 800 and already profits in the ratio of 2: 1. Following
500 Q. 63. Kaveriand Tapti are partners sharing
respectively. They share profits and losses in the ratio of 2: 1:1. Give necessary particulars are obtained from their books :
journal entry to rectify the accounts. 2023 were Kaveri 6,15,000 and Tapti
() Closing Capitals as on 31st March deed.
|Ans. Opening Capitals : A 1l6,000; B 3,60,000 after all adjustments as per partnership
Ac by 260 and C"s Capital A/c by I15 and13,300 and C 8,000; Debit A's Capital (ii) Drawings during the year were
Kaveri 10,000 per month and Tapti
Credit B's Capital A/c by ?375.]
Q. 60 (C). Aand B are partners in a 15,000 per quarter.
of 3 :2. Their capitals on 31st business sharing profits and losses in the ratio partnership deed @ 5% p.a. on
March, 2024, after the adjustment of net profits (iii) Interest on Capital is allowed to them as per
drawings amounted to 2,00,000 and and Opening Capitals.
discovered that interest on Capital at 8% per1,50,000 respectively. Later on, 1t was 3,15,000.
deed, had not been credited to the annum, as provided for in the partnersnp ( )Divisible profit during the year was
partner's
profits. The yearsnet profit amounted to capital accounts before the distribution O Calculate the Opening Capitals of partners.
{24,000 each. Instead of altering the signed 75.000 and the partners had withdrawn 5,00,000and Tapti 3,00,000.]
|Ans. Opening Capitals :Kaveri
adjustment entry at the beginning of the newbalance sheet, it was decided to
year crediting or debiting the make afirm sharing profits and
losses in the ratio of 2:1.
Accounts. Give the necessary journal entry as also Panu Q. 64. A and B are partners in the fim as at 31.3.2024.
amount of adjusting entry a statement of Balance Sheet of
detailsarriving at The following was the
Assets
[Ans. Opening Liabilities
71,184 and Credit B'sCapitals AI,79,000 and 6,00,000 Sundry Assets 10,00,000
Capital Alc by 1,184.] B1,44,000; Debit A's Capital A Capitals : A
 FIRMS
ACCOUNTING FOR PARTNERSHIP
1128
400,000
10,00,000
UNDAMENTA ACCOUNTINGFFOR PARTNERSHIP FIRMS - FUNDAMENTALS

BALANCE SHEET
as at 31st March, 2024
I129

31.3.2024 were divided

4,50,000for the year ended
chargibnegtweinnterey
Liabilities Assets
The profits without
capital(@9% p.a. and 1.40,000
on drawings
partners allowing
@12%
without p.a. Duringthe onyear A withdrew 1,00,000 and BZ50,000,.
interest A's Capital 1,00,000| Fixed Assets
60,000
B's Capital 80,000| Current Assets
20,000
Pass the necessarv adjustment jourmal entry andIshow your working clearly. Appropriation A/c Drawings -B
Pand L
2023-24 40,000
Dr. 6,000 2,20,000
[Ans. s Capital A/c 6,000] 2,20,000
To B's Capital A/c and Bshare protits
be charged for 6 months. Profit during the year ended 31lst March, 2024 was 70,000. A
Hint : Interest on drawings will ended 31lst March, 2024 were A 16,000
sharing profits and |losses in the in the ratio of 2: 1. Drawings during the year
Q. 65. 4and Bare partners in afim
the firm as at 31.3.2024. ratio of2:3 and B 20,000.
The following was the Balance Sheet of [Ans. Interest on Capitals : A 4,800; B 3,500.]
Liabilities Assets
|Sundry Assets
Capitals:
B
4,90,000
3,00,000 7,90,000 1.90,000 Adjustment Entries in place of a Single Journal Entry
Their capitals as on April 01, 2022
0. 68. Cheese and Slice are equal partners.
7,90,000
7,90,000 respectively. After the accounts for the financial year
were 50,000andR1,00,000 observed that interest on capital (@ 6%
Profits 2,00,000 for the year ended 31.3.2024 were divided between the partme ending March 31,2023 have been prepared, it is partnership
(@5,000 per annum, as provided in the
without allowing interest on capital @6% p.a., interest on drawings @10% p.a. and per annum and salary to Cheese distribution of
partner's capital accounts before
salary to B @75,000per month. During the year Awithdrew 40,000 and Bwithirew deed has not been credited to the
20,000. profits.
rectifying entries using P&L adjustment
Showing your working notes clearly, pass the necessary rectifying entry. You are required to give necessary Paper 2024)
(C.B.S.E. Sample
account.
Ans. A's Capital A/c Dr. 13,400
partners 7,000 each.]
to
To B's Capital A/c 13,400] [Ans. Loss of P & L Adjustment A/c debited
Q. 66. A and B are partners sharing profits and losses in the ratio of 3 :1. Hints : debiting
allowing interest on capitals and salary by
Following is the Balance Sheet of the firm as at 31st March, 2024. () Separate entries will be passed for
Profit & Loss Adjustment A/c.
Liabilities equally.
Assets distributing the loss on adjustment 14,000
A's Capital (i) Entry will be passed for
B's Capital
90,000| Drawings : partners in a firm. Their Capital
Accounts as on Ist
30,000 4 12,000 Q. 69. Piya and Shreya are respectively.
B 6,000 18,000 April, 2023 were 5,00,000 and 3,00,000
Deed:
Sundry Assets 1,02,000 As per provisions ofthe per year and Shreya a
1,20,000 1,20,000 () Piya was entitled to a remuneration of 60,000
remuneration of 6,000 per month.
Profit for the year ended 31st March, 2024 24.000 was divided between ue provided (@ 6% p.a.
partners in their profit sharing ratio, but interest (ii) Interest on Capitals was to be ended 3Ist March,
at 6% p.a. was on capital at 5% p.a. and on of 4,00,000 for the year
inadvertently ignored. Give the drawig Ignoring the above terms, net profit in the ratio of their capitals.
adjustment of interest. Interest on necessary adjustment
drawings may be calculated on an entry 10 2024 was distributed between
the partners
6months.
average basis for Pass the journal entries to rectify the above errors.
[Ans. B's Capital Alc partners 1,10,000 each.]
To A's Capital A/c
Dr. 45 [Ans. Net Profit credited to
45] distributed in wrong ratio
Q.67. From the Hints :
withdrawing the profit of{4,00,000
at 5% p.a. for the yearfollowing Balance Sheet of 4and B, calculate () Entry willbe passed for Adjustment Alc.
ending 31Ist March, 2024 : interest on cap by crediting Profit &Loss
 1130 ACCOUNTING FOR PARTNERSHIP FIRMS -

() Separate entries will be passed for allowing remuneration and

debiting Proft&Loss Adjustment Alc.
Corrected Net Profit of
interest
on FUN OACaMpEiNtaTlsAL b
ACCOUNTING FOR PARTNERSHIP FIRMS - FUNDAMENTALS

1,20,000. The profits for the year ended 31st March, 2023 amounted to 78,40,000.
necessary entries in the books of the fim.
1131

(m) Entry will be passed for distributing the

2,20,,(000 equaly. Pass
[Ans. Final share in profits : A3,20,000: B 240.000: CU,60,000 and
DU,20,000.]
Guarantee of Minimum Share of Profit
0. 74. The partners of afirm distributed the profits for the year ended 3Ist March,
Q. 70 (A). 4. Band Care partners in a firm. Their profit sharing ratio
However, Cis guaranteed a minimum amount of 10,000 as share of
ear. Anv deficiencv arising on that account shall be met by A. The profits
is3:th2e:1
profiforts every 2024, 1,50,000 in the ratio of 2 : 2: 1 without providing for the
adjustments:
() A and B were entitled to a salary of ?1,500 per quarter.
following

years ending 31st March. 2023 and 2024 were 30,000 and 790,000 twO
Prepare Profit and Loss Appropriation Account for the two years.
[Ans. Ist year 10,000 each. 2nd year A 45,000; B 30,000 and C
respectively,. (i) C was entitled to a commission of 18,000.
(ii) Aand C had guaranteeda minimum profit of 750,000 p.a. to B.

Q. 70 (B). AX Yand Zare partners with capitals of 4,00,000;

15,000) (iv) Profits were to be shared in the ratio of 3: 3:2.
firm.
Pass necessary joumal entry for the above adjustments in the books of the
2.00,000 respectively. They charge 8% p.a. interest on their capitals and3,00,000 and
profits in the ratio of 3:2:1.Xhas guaranteed that Z's share shall not amount to the divide [Ans. A's Capital A/c
B's Capital Alc
Dr.
Dr.
12,000
4,000
than 50,000in any one year. less ToC's Capital A/c 16,000]
Their Drawings during the year were 750,000; 40,000 and 35,000:
Net profits for the year before providing interest on capitals was 2,52,000. Prenorrespectively. 0. 75. Xand Ywere sharing profits in the ratio of 2 :1. On Ist April, 2023 they
P&L Appropriation Acand capital accounts. admitted Z for th share in the profits. Zis guaranteed a minimum profit ofRI,00,000
[Ans. Profits X770,000; Y60,000; Z 750,000.] for the year. Any deficiency in Z's share is to be borne by Xand Yin
the ratio of3 :2.
March, 2024 amounted to 1,20,000. Record
Q. 71. 4, Band Cwere partners in a firm sharing profits in the ratio of l :2:3.R Losses for the year ending 31st
was guaranteed a profit of 2,00,000. Any deficiency on account of guarantee to R necessary entries.
new
was to be borne by A and C in I:4 ratio. The profit of the firm for the year ended [Ans. (i) First of all, loss of 1,20,000 will be debited to X, Yand Z in their
31.3.2023 amounted to 4,20,000. profit sharing ratio of2: 1:1.
Prepare Profit and Loss Appropriation Account. (ii) Thereafter, Z's deficiency of 1,30,000 will be bome by X and Y in
[Ans. Share of Profit AR58,000; B 2,00,000and 3:2.)
C1,62,000.]
Q. 72. A, B and Cwere partners sharing profits and
losses in the ratio of 3:2:1. Q. 76. A, B and Care partners sharing profits in the ratio of 4: 3:2. It was
Their capitals on Ist April, 2023 were : provided that B's share of profit will not be less than1,50,000 per annum. The losses
on Loan
AR5,00,000; B 73,00,000 and for the year ended 31st March, 2024 were 785,000, before allowing interest
C*2,00,000. of1,00,000 taken from Aon Ist June, 2023.
Ahad personally guaranteed that in any
year C's share of profit after allowing necessary
interest on capital to all partners @8% p.a. and You are required to show necessary account for division of loss and pasS
p.a. willnot be less than charging interest on drawings @l0% journal entries.
1,00,000. willbe debited to
The net profit for the year ended 31st (Ans. (i) First of all, loss of 90,000 (*85,000 + Interest ?5,000)
any interest amounted to March, 2024, before allowing or charging A, Band Cin 4:3:2.
4,32,000. andCin
Ahas
withdrawn ?5,000 at the end of every (i)Thereafter, B's deficiency of 1,80,000 willbe be borne by A
Bhas
withdrawn 15,000 at the end of everymonth. 4:2.
Chas withdrawn 60,000 quarter.
during the year.
Prepare Profit and LoSs Guarantee of Profit when partnership startsduring the year
[Ans. Share of Profit AAppropriation Account for the year 2023-24. Q. 77, A, B and C entered into partnership on Ist
Profit and
July, 2023 to share
1,40,000; B 1,20,000 and C I,00,000. Losses in the ratio of 5: 3:2. A personally guaranteed that C's
share of profit after
Q.73. A, B, Cand Dare (@8% per annum would not be less than 1,60,000 p.a. The
given a guarantee that his partners sharing profits in the ratio of Charging interest on capital C-2,00,000. Profit
3,00,000 and
share of profits in any 4:3:2:1.DD capitalcontributed were :A-74,00,000; B
given year would not be less than
 No

ACCOUNTING FOR PARTNERSHIP FIRMS

1.132

for the year ended on 31st March, 2024 was 4,74,000. Prepare Profit
FUNDAMENT ALS ACCOUNTINGFORPPARTNERSHIP
FIRMS - FUNDAMENTALS 1.133

and Loss Prepare Profit and Loss Appropriation Account ofthe firm.
Appropriation Account. [Ans. Share of Profit : Pappu 20,850 and Munna 13,900.]
|Ans. Share of Profit:41,74.000: B R,26,000 and C?1,20,000.]
o 81. A., B and Cwere partnmers in a fim having capitals ofZ1,00,000; 1,00,000
were
ADDITIONAL QUESTIONS and
2,00,000respectively. According to the partnership deed thewaspartners
also entitled
entitled to interest on capital @
6% p.a. Abeing the working partner
profits in the ratio of profits were to be divided as follows :
Q. 78. D. Eand F were partners in a firm sharing 7,00,000 5:7:, to asalary
of 5,000 per month. The
5,00,000, E
Their fixed capitals on lst April, 2023 were Dfollowing : ) The first ?40,000 in the ratio of 2:3:5.
provided for the
F R8,00,000. Their partnership Deed (b)Next 80,000 in the proportion of their capitals.
() Intereston capital (@10% p.a. (c) Remaining profits to be shared equally.
ended 31st March, 2024 before
(ii) Salary of 10,000 per month to F. The firm made a profitof 2,70,000 for the year Appropriation Account and
above items. Prepare the Profit & Loss
(i)) Interest on drawing @12% p.a. abarging any of the
of profits.
?50,000 on 30th June 2002 apportionment
D withdrew 740,000 on 30th April, 2023; E withdrew pass necessary journal entry for
and Fwithdrew 30,000 on 31st March, 2024. IAns. Share of Profit :A ¿50,000; B R54,000and C 82,000.]
73,50,000 on 1st April, 2023, their respective
During the year ended 31st March, 2024 the firm earned a profit of 0. 82. X, Yand Z are in the partnership and
Appropriation Account for the year ended 3Ist March 2,00,000; 1,20,000 and 1,00,000. Yis entitled to a salary of 725,000
Prepare the Profit and Loss canitals were of profits. Interest is allowed on
payable before division
2024. and Z 20,000 per annum, on drawings. Of the net divisible profits of
[Ans. Share of Profit D 9,725; E R13,615 and F 15,560.] capital at 5% per annum but is not chargedcent; Yto 35 per cent and Zto 25 per cent,
the first1,00,000; X is entitled to 40 per March,
0. 79. Simmiand Sonu are partners in a firm, sharing profits and losses in the ratio equally. The profit for the year ended 31st was
2024 over that amount profits are shared charging interest on capitals,
of 3: 1. The profit and loss account of the firm for the year ending March 31, 2024, after debiting partnership salaries, but before
each. Prepare partner's capital accounts
shows a net profit of 1,50,000. Prepare the Profit and Loss Appropriation 1.81.000and the partners had drawn 78,000
Account and Partner's Current Accounts by taking into consideration the following for the year.
of Capital Accounts X 2,62,000;
information:
JAns. Divisible Profits 1,60,000; Balance
(i) Partners capital on April 1, 2023 : Yl,98,000; Z 1,62,000.]
: 2with
Simmi 30,000; Sonu R60,000. partners sharing profits in proportion of 3 at 6%
(ii) CurTent accounts balances on April 1, 2023 : Q. 83. Tulsi and Kabir are respectively. Interest on capitals is agreed
capitals of 78,00,000 and 6,00,000
the year ended 31st
Simmi 30,000 (Cr.); Sonu 15,000 (Cr.). salary of 6,000 per month. For
p.a. Tulsi is to be allowed a calculation of interest on capital but after charging
(iii)Partners drawings during the year amounted to March, 2024, the profits prior to commission of 10%
Simmi 20,000: Sonu 15,000. 2,28,000. Manager is to be allowed a
Tulsi's salary amounted to
(iv)Interest on capital was allowed (@ 5% p.a. of the profits.
allocation of profits.
(v) Intereston drawing was to be charged @6% p.a. at an average of six months. Prepare an account showing the 10% of
1,14,000; Manager's Commission will be
(vi) Partner 's salaries :Simmi 12,000 and Sonu 79,000. Also show the partner's (Ans. Divisible profit
current accounts. 3,00,000, i.e., 30,000.] profit
commission of 10%ofnet
[Ans. Divisible profit 1,25,550; Current Account balance: Simmi 1,17,063 and partners in a firm. A is to get a after
Q. 84. A and Bare commission of 10% on net profit
Sonu42,937.J Defore charging any
commission. B is to get a
any commission was 55,000.
profit before charging
Q. 80. Pappu and Munna are partners in a firm sharing profits in the ratio of 3:2. charging all commissions. Net
The partnership deed provided that Pappu was to be paid salary of 72,500 per month Find out the commission of Aand B. commission 4,500.]
and Munna was to get a commission of ?10,000 per 5.500: B's
year.
allowed @ 5% per annum and interest on drawings wasInterest on capital was (o 0e |Ans. A's commission year ended
to be charged @ 6o pel Tarun (@ 8% p.a. for the
annum. Interest on Pappu's drawings was 71,250 and on Calculate the interest on Drawings of
Capital of the partners were 2,00,000 and Munna's drawings 4L Q 85. following altermative cases :
of the
Slst March, 2024 in each
The firm earned a profit of 790,575 for the ?1,50,000 respectively, and were fixed.
year ended 31-3-2024.
 -SPS

1.134 ACCOUNTING FOR PARTNERSHIP FIRMS -

Case (a) if his drawings during the year were 60,000;

Case (b) if he withdrew 5.000 p.m. in the beginning of every month:
FUNOAMENIA ACCOUNTINGFOR PARTNERSHIP FIRMS FUNDAMENTALS
[Ans. Rate of Interest 12% p.a.]
1135

Case (c) if he withdrew 5,000 p.m. at the end of every month; Hint. Refer Illustration 33.
Case (d) if he withdrew 75,000 p.m. during the year; o. 94. Calculate the rate of interest on drawings in the following cases :
Case (e) if he withdrew the following amounts as under : (i) Charuand Suruchi are partners in a firm. Suruchi withdrew 12,000 in the
2023 June, 1:10.,000: August 31:12,000; November 1:: 16,000; beginning of each quarter and interest on drawings was calculated at 2,700
31:13.000; Februay 1, 2024: 9,000.
[Ans. Case (a) 2,400; Case (6) 2,600; Case (c) 2,200; Case (d)
Deecember at the end of the year.
(ii) Yamini and Sonia are partners in a firm. Sonia withdrew ?12,000 at the end
Case (e) 2, 140.)
@9% p.a.
2,40, of each quarter and interest on drawings was calculated at 1,440 at the end
of the year.
Q. 86. Calculate the interest on Drawings of Anuradha for the year
ended 31st March 2024, if she withdrew 10,000 in the beginning of each quarter [Ans. Case (i) 9% p.a., and Case (ii) 8% p.a.]
Hint. Refer Illustration 33.
(Ans. 2,250.]
Q. 87. Calculate the interest on Drawings of Bipasa (@ 9% p.a. for the year ended 0.95. X, Yand Zcontribute 3,00,000, 2,00,000 and 1,00,000 respectively by
profits and
31st March 2024, if she withdrew 10,000at the end of each quarter. wav of capital on which they agree to allow interest at 12% p.a. They share 760,000
2024 is
[Ans. 1,350.] losses in the ratio of 5:3 :2. Profit for the year ended 31st March,
Appropriation Account if
before allowing interest on capitals. Prepare a Profit & Loss
0. 88. Calculate the interest on Drawings of Charulata @ 9% p.a. for the vens (i) partnership deed is silent as to the treatment of interest as a charge or appropriation,
the firm in loss.
ended 31st March, 2024, if she withdrew 10,000each quarter. and (ii) partnership deed provides for interest even if it involves
Z10,000. Case (ii)
[Ans. 1,800.] [Ans. Case (i) Interest on capital X 30,000; Y20,000 and
Q. 89. Calculate the interest on Drawings of Divya @ 9% p.a. if she withdrew Loss X6,000; Y 3,600 and Z 2,400.1
4,000p.m. on the first day of every month for six months ending 31st March,2024. Q. 96. Arun and Arora were partners in a firm sharing profits in the ratio of 5:3.
[Ans. 7630.] capitals on 1.4.2023 were:Arun 760,000 and Arora 80,000. They agreed
Their fixed
charge on drawings @15% per
Q. 90. Calculate the interest on Drawings of Esha (@ 9% p.a., if she withdrew to allow interest on capital (@ 12% per annum and to
for the year ended 31.3.2024 before all above
t4,000 p.m. on the last day of every month for six months ending 3I st March, 2024. annum. The profit of the firm Arora
2,000 and by
[Ans. 450.) adjustments were ?12,600. The drawings made by Arun were
Prepare Profit and Loss Appropriation Account of Arun and
74,000 during the year. capital will be allowed even if
Q.91. Calculate the interest on Drawings of Garima (@ 9% p.a., if she withdrew Arora. Show your calculations clearly. The interest on
{4,000p.m. for six months ending 31st March, 2024. the firm incurs a loss.
[Ans. <540.) ?1,406.]
[Ans. Share of Net Loss: Arun 2,344 and Arora
Hints :
Q. 92. Seema and Tina are partners ina firm. Interest on profit. Hence, it will be debited to Profit and
10% p.a. You are required to calculate the amount of drawings is charged @ () Interest on capital is a charge against
drawings of each partner in the Loss A/c.
following cases (after debiting interest on
(i) Although P&LAc shows aloss of ?4,200 prepared in this question, because
() Seema withdrewa fixed amount in the
beginning of each month and interest capital), P& L Appropriation A/c willthisbeaccount.
on drawings is 3,900. interest on drawings is to be credited to
(ii) Tina withdrewa fixed amount in the
beginning of each quarter and interest on
drawings is 6,000. Adjustments in the Closed Accounts
[Ans. Case (i) 6,000 per month, and Case
(ii) 24,000per quarter.] profits and losses equally have fixed capitals
Q. 97. Raja, Roopa and Mala sharing respectively.
Hint, Refer llustration 3Iand 32. For the year ended 31st March,
of ?12,00,000, 79,00,000 and 6,00,000 instead of5% p.a. Give adjusting entry.
Q. 93. Era, a partner 2024, interest was credited to them @ 6%
firm in the beginning of withdrew 40,000 per month for
each month. Interest on her her personal use frOm ue [Ans.
31,200 at the end of the year. drawings was calculated a Raja's Current A/c Dr. 3,000
Calculate the rate of interest on her To Mala's Current A/c
3,000]
drawings.
 PARINERSHIP FIBMS
1136
ACCOUNTING FOR

a fim sharing
profits in 7:3ratio FUNDTheiAMMEr NT A\S ACCOUNTING
FOR PARTNERSHIP FIRMS
E's Capital A/c
FUNDAMENTALS
Dr. 24,600
1137

capitals
Q. 98,wereP PS,00,000 andd in8,00,000.
and were partners For the year ended 31st March, 2024,
necessarv
fixet To F's Capital A/c 1.200
instead of 10%. Show the ToG's Capital A/c 23,400)
interest on capital was credited (@ 12°%
entry for the rectification of the
ermor. Also show the
clearly.
working notes adjusing were
102. Aand B are partners in a business. Their capitals at the end of the year
6,40,000 and 4,60,000 respectively. Duringthe year ending 31st March, 2024,
[Ans. Dr. 8,200 drawings and B's drawings were 1,20,000 and I,40,000 respectively. Profits
P's Current Alc 8,200] A's were 4.00,000. Calculate
ToP's Current A/c
Q. 99. A, Band Care partmers. Their fixed capitals as on 31st March. 2024 were (before charging interest on capital) during the year
interest on capital @ 12% p.a. for the year ending 31st March, 2024.
AZ2,00,000, B 3,00,000 and C 4,00,000. Profits for the year ended 331st March, Interest on Capitals : A 67,200; B 48,000.]
[Ans.
2024 amounting to 1,80,000 were
distributed. Give the necessary adjusting
entry in o 103. Prem, Param and Priya were partners in a firm. Their fixed
capitals were
alternative cases : 2,00,000; Param 3,00,000 and Priya S,00,000. They were sharing protits
each of the following p.a. though there was no Prem 2 ratio will be
was credited @ 8% ratio of their capitals. It was decided that the new profit sharing
Case (a) Interest on capital inthe effect will be introduced retrospectively for the last four years. The
deed. 2:1:2 and its
provision in the partnership credited @ 8% p.a. though there was
o.t 74.75,000 and ?5,25,000
Case (b) Interest on capital was not fts of the last four years were 2,00,000; 3,50,000:
respectively.
provision in the partnership deed. adjustrment entry to give
(@ 8% p.a. instead of 10% p.a. Showing your calculations clearly, pass a necessary
Case (c) Interest on capital was credited between Prem, Param and Priva.
credited (@ 10% p.a. instead of 8% p.a. effect to the new agreement (C.B.S.E. 2015. All India)
Case (d) Interest on capital was
Credit A's Current A/c with 78,000:
JAns. Debit C"s Current A/c and Param's Current A/c Dr. 1,55,000
Debit 4's Current A/cand Credit C's Current A/cwith 78.000: [Ans. Dr. 1,55,000
A/c with 2,000: Priya's Current Alc
Debit A's Current A/c and Credit C's Current with 2,000:1 To Prem's Current A/c
3,10,000]
Current Alc and Credit A's Current A/c
DebitC"s accounts
are partners in a firm. Their capital
with fixed capitals of 5.00.000 0. 104. (HOTS) Alex, John and Sam
0. 100. Neena and Sara were partners in a firm 80,000 and 60,000 respectively.
and 4,00,000 respectively. It was discovered that interest on capital @ 6% p.a, was on 1stApril, 2021, stood at 1,00,000,
the financial year 202 1-22.
credited to the partners for the two years ending 31st March, 2018 and 31st March. Each partner withdrew 5,000 during
sharing partnership deed:
2019 whereas there was no such provision in the partnership deed. Their profit As per the provisions of their
of 1,000 per month.
(a) John was entitled to a salary
ratio during the last two years was :
2017-18 4:5 allowed @10% per annum.
5:1 (b) Interest on capital was to be
2018-19 be charged (@4% per annum.
(c) Interest on drawings was to
Showing your workings clearly, pass the necessary adjustment entry to rectify the to be shared in the ratio of their capitals.
(d) Profits and losses were
(C.B.S.E. 2020, Rajasthan) 2022, was divided equally
for the year ended 3Ist March deed.
erTor.
[Ans. Sara's Current A/c Dr. 9,000 The net profit of 75,000 providing for the terms of the
To Neena's Current A/c 9,000] amongst the partners without Adjusting Journal Entry to rectify
the error.
pass a Single
Q. 101. E, Fand G were partners in a firm sharing profits in the ratio of3 :2:1. You are required to
After division of the profits for the year ended 31-3-2024 their capitals were: (Show the working clearly)
E 2,95,000; F 23,30,000; and G3,35,000. During the year they withdrew 740,000 SOLUTION: STATEMENT OF ADJUSTMENTS
each. The profit of the year was ?1,80,000. The partnership deed provided that interest Sam
oncapital will be allowed @ 12% p.a. While preparing the final accounts, interest on Alex John
partner's capital was not allowed. Particulars
You are required to calculate the capital of E, F and G as on |-4-2023 and pass
ne have been credited : 12,000
necessary adjustment entry for providing interest on capital. Show your workings 1. Amount which should 6,000
clearly. 10,000 8,000
Salary
[Ans. Opening Capitals E 2,45,000; F 3, 10,000 and Interest on Capital
G3,45,000. Adusting - 24,000 + 300
Entry : Profit (?75,000 -I2,000
 SPS.

1138 ACCOUNTING FORPARTNERSHIP FIRMS

for interest on drawings =39,300) in 5:4:3 16,375

26,375
13,100 FUNOAMENENTAL9325TI ACCOUN TING FOR PARTNERSHIP FIRMS FUNOAMENTALS 1.139

2. Amount which should have been debited :

Cr.
33,100 15,323 Guarantee of Profit to a Partner
o. 107. X, Yand Zare partners sharing profits and losses in the
100 ratio of 3:2:1
Interest on Drawings
25,000
100 .ith a minimum profit of 1,00,000 for Z. The profits for the vear ended March 31,
Profit already distributed equally 25,000 023 amounted to (4,80,000. Pass necessary journal entries in the books of the firm.
Dr. 25,100 25,100 25 ,000 IAns. Share of Profits X2,28,000; YI,52,000
Net Effect (Cr.)1,275| (Cr.) 8,000| (Dr.)25,100 andZl,00,000]
o 108. A, B and Care partners in a firm sharing profits in the ratio of 2
ADJUSTMENT ENTRY
958 :2:1.
According to the terms of the partnership agreement Chas to get a minimum of 26,000
Date Particulars LF Dr. () irrespective of the prolits of the fim. Any excess payable toC on account of such
2022 Cr. ? uarantee shall be borne by A. Profits earmed during the year ended 3 1st March, 2023
vere 25,000. Pass journal entries in the books of the firm.
April 1Sam's Capital Alc Dr
To Alex's Capital Alc 9,275 IANs. Share of Profits A 9,000; B10,000 and C 6,0001
To John's Capital A/c 1,275 o. 109. A, B and Care partners sharing profits in the ratio of5 :4:1.Cis given a
(Adjustment for salary, interest on capital, interest on 8,000 guarantec that his share of profits in any year will not be less than 20.000. The profit
drawing and wrong distribution of profit) for the year ending 3Ist March 2023 amounts to ? 1,40,000. Amount of shortfall in the
0. 105. A, B andC were partners in afirm. On Ist April, 2021 their capitals sol profits given to Cwill be borne by Aand B in the ratio of 3:2. Pass necessary journal
entry regarding deficiency borne by A and B.
as #5,00,000: R2,50,000 and 2,50,000
partnership deed :
respectively. As per provisions of the JAns. A's Capital A/c Dr. 3.600
(i) Cwas entitled for asalary of$,000 per month. B'sCapital A/c Dr. 2,400
To C's Capital Ac 6,000]
(ii) Awas entitled for a commission of 80,000 p.a.
(iii) Partners were entitled to interest on capital (a 6%
Q. 110. Maanika, Bhavi and Komal are partners sharing profits in the ratio of
p.a. 6:4:1 Komal is guaranteed aminimum profit of 22,00,000. The firm incurred a loss
(iv) Partners will share profits in the ratio of of 22,00,000 for the year ended 31st March, 2018. Pass necessary jourmal entry
capitals.
Net profit for the year ended 31.03.2022 was regarding deliciency borne by Maanika and Bhavi and prepare Profit and Loss
equally, without taking into consideration 3,00,000 which wvas distributed Account. (CB.S E. Sample Paper, 2019)
the above provisions. Showing your
workings clearly, pass necessary adjustment entry for the above.
(Ans. (i) First of all, loss of 22,00,000 will be debited to Maanika, Bhavi and
Komal in their protit sharing ratio of 6:4:1.
|Ans. B's Capital A/e Dr.
To A's Capital A/c
60,000 (0) Thereatter, Komal's deficiency of ?4,00,000 will be borne by Maanika
60,000] and Bhavi in 6 : 4. |
Q. 106. Piya and Bina are partners in a
of 3:2. Following was the tirmsharing profits and losses in the ratio
Balance Sheet of the firm as on 31-3-2016 LATEST C.B.S.E. EXAMINATION QUESTIONS
Liabilities
Capitals : Assets Q. 1. Mohan, Sohan and Suresh were partners in a fim sharing profits in the ratio
Piya
80,000
Sundry Assets 1,20,000 of 2:2: 1. Suresh was guaranteed a profit of ?70,000. Any deficiency on account of
Bina guarantee to Suresh was to be borne by Mohan and Sohan in 3:2 ratio. The profit of
40,000 1,20,000 the tirmn for the year ended 31.3.2022 amounted to R2,00,000.
1,20,000 1,20,000 Prepare Profit and Loss Appropriation Account of the firm for the year ended
The profits 30,000 for the vear ended 31.3.2022. (C.B.S.E. 2023, Rajasthan, UP.)
partners without allowing interest on 31-3-2016 vere divided between ne [Ans. Share of Profit : Mohan {62,000: Sohan 68,000 and Suresh 70,000.]
the year Piya capital 12% D.a. and salary to Piva @?1,000
per month. During @
Showing your working notes clearly, withdrew 8.000 and Bina withdrew 24,000. Q.2. Akhil and Nikhil were partners sharing profits and losses in the ratio of 3:2.
pass the necessary Their fixed capitals were I,00,000 and 80,000 respectively. Interest on capital was
JAns. Bina's Capital A/c rectifying entry.
(C.B.S. E. 2017 Comptt) agreed @6% p.a, Nikhil was to be allowed an annual salary of 9,200. During the
To Piya's Capital Alc Dr. 5,856 year 2021-22, the net profit prior to the calculation of interest on capital but afier
S,856] charging Nikhil's salary amounted to ?1,20,000.