Accounts Partnersip PDF

-: 1 :- PARTNERSHIP/ICAI/MCQs LR
Accounting – Logical Reasoning – ICAI Module – Partnership (Unit 1)
As per Sec 4 of the Indian Partnership Act, 1932; Partnership is the relationship between persons who
have agreed to share the profits of the business carried on by all or by any of them acting for all.
Thus the share of profits may or may not be equal.
Hence the correct option: c
Registration of the Partnership agreement is not mandatory. If the agreement is registered, it is called
Partnership deed.
Partners’ contribution towards the business of the firm is called as capital. When such capitals of
partners are not allowed to change, except in extraordinary circumstances, contributions by the
partners are called fixed capitals. In such a case, adjustments regarding interest on capitals, salary to
partners, drawings, profits or losses are done through partners’ current accounts. In this case two
Capital Accounts are maintained i.e. Fixed Capital and Current Capital.
Hence the correct option: d
As per Sec 13(d) of the Indian Partnership Act, 1932; in absence of an agreement to the contrary,
the partners shall be entitled for 6% interest on loans / advances to the firm over and above the
agreed capital contribution whether there are profits or not.
ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

A partner is an agent acting on behalf of the firm / other partners. Though partners may be entitled to
salary, they are not the employees of the firm for outsiders.
Hence the correct option: a
The profit of Rs. 7,800 will be shared by Bill and Monica in the ratio 3:2. Thus their share will be 7,800 X
3/5 and 7,800 X 2/5 i.e. 4,680 & 3,120. (All other information is irrelevant – MBKL)
If partnership deed provides for the interest on capital, partners are entitled for interest on capital only
in case of profits. Thus in this case the amount of interest cannot exceed Rs. 2,400, which will be shared
by them in the proportion of their capital i.e. 25,000:15,000 or 5:3. Thus the interest on capital will be
1,500 and 900.
Hence the correct option: b
Meeta’s salary = 4,000 X 12 = Rs. 48,000

Profit after salary but before commission = 6,78,000 – 48,000 = 6,30,000
Let the commission be ‘X’. Thus profit after commission = 6,30,000 – X
Commission = 5% of (6,30,000 – X). Thus X = 5% of (6,30,000 – X).
Thus X = 30,000
Meeta’s remuneration = 48,000 + 30,000 = 78,000
While calculating the profit for the purpose of valuation of Goodwill, all exceptional profits or losses are
ignored. However for the calculating the book profit these need to be considered.
As per Sec 13(d) of the Indian Partnership Act, 1932; in absence of an agreement to the contrary, the
partners shall be entitled for 6% interest on loans / advances to the firm over and above the agreed
capital contribution whether there are profits or not.
Partners are entitled to Salary, commission and share in Profit only if the agreement so provides.
in case of profits.
Partners are required to pay the interest on drawings if it is agreed by partners and is provided in the
agreement or partnership deed. Thus both ‘a’ & ‘c’ are correct.

Guarantee by one partner to another is the transaction between the two partners and not an obligation
of the firm or other partners.
As the partners B & C has given the guarantee, A has the right to draw to the extent of minimum
guaranteed amount from the firm.
As per Indian Partnership Act, 1932; in absence of any agreement to the contrary all the partners will
share the profits equally.
As per Sec 13(d) of the Indian Partnership Act, 1932; in absence of an agreement to the contrary, the
partners shall be entitled for 6% interest on loans / advances to the firm over and above the agreed
capital contribution whether there are profits or not.
Profit & Loss Appropriation A/c shows the way in which the profits are to be allotted. In case of
proprietorship firm the entire profit is at the discretion of the proprietor and thus the appropriation
account is not prepared. However it may be prepared in case of partnership firm.

Time frame involved: 1 month of contribution + 12 months of withdrawal = 13 months.
Thus average time to be considered = = 6.5 months

Interest on drawings is an income of the firm and hence it is to be credited to P&L A/c of the firm.
Partner’s Fixed Capital A/c will have ‘Credit’ Balance.

If salary, commission, interest on capital, share of profit etc. etc are more than the drawings, interest on
drawings then the current A/c will show credit balance and vice versa. Partner’s Current A/c may have
either of the balances.
Rent paid is an expense of the firm and thus is a charge against profit and not appropriation of the
profit.
Drawings are the amounts withdrawn by the partners from the firm. The entry for drawings is:
Partner’s Capital A/c Dr (If Fixed & Current A/cs are not maintained)
Partner’s Current A/c Dr (If Fixed & Current A/cs are maintained)
To Drawings A/c

As per Sec 13(d) of the Indian Partnership Act, 1932; in absence of an agreement to the contrary,
the partners shall be entitled for 6% interest on loans / advances to the firm over and above the
agreed capital contribution whether there are profits or not.
Thus the interest payable to A: 20,000 X 6% = Rs. 1,200 is to be provided for. Profit after providing
for the interest = Rs. 80,000 – 1,200 = Rs. 78,800.
As per the Indian Partnership Act, 1932; in absence of an agreement to the contrary, the partners
shall share profits and losses equally. Thus the share of each of the partners = 78,800 / 3 = Rs.
26,267 and A will additionally get Rs. 1,200 as interest.
in case of profits. In this case as the profits are inadequate, interest on capital will not be allowed and
the profit will be shared by X, Y & Z equally i.e. Rs. 2,000 each.
In absence of any agreement, partners are entitled to interest on Loans @ 6% and not entitled interest
on capital.
Thus interest payable to Y: 80,000 X 6% = Rs. 4,800.
Balance profit = 6,000 – 4,800 = 1,200 will be shared by all the partners equally i.e. Rs. 400 each.
Thus X & Z would get Rs. 400 each and Y will get Rs. 400 + 4,800= Rs. 5,200

If partnership deed provides for the interest on capital, partners are entitled for interest on
capital only in case of profits. In this case as the profits are inadequate, interest on capital will
not be allowed and the profit will be shared by X, Y & Z equally i.e. Rs. 2,000 each.
Partners’ contribution towards the business of the firm is called as capital. When such capitals of
partners are not allowed to change, except in extraordinary circumstances, contributions by the
partners are called fixed capitals. In such a case, adjustments regarding interest on capitals,
salary to partners, drawings, profits or losses are done through partners’ current accounts. In
this case two Capital Accounts are maintained i.e. Fixed Capital and Current Capital.
The points a, b & c are true about Partnership & Joint Venture. However, it is not mandatory to
have MOU for Joint venture.
Every partner is bound to attend diligently to his DUTIES in the conduct of the business.

Ans. (b) Rs. 255000

Value of Goodwill =
Ans. (b) Rs. 84000
Value of Goodwill =
Ans. (d) None of the above

While raising the Goodwill, Goodwill A/c is debited and Partners Capital A/c is Credited
Ans. (c) Rs. 7200000
Value of Business =
Value of Goodwill = Value of Business – Capital Employed
= Rs. 8000000 – Rs. 800000 i.e. Rs. 7200000

Ans. (c) 52500 and 31500
As the goodwill is valued on 02.04.06 the same will be distributed in new PSR. However this is
not in compliance with AS 26.
Ans. (b) D will pay to B Rs. 10000

Particulars B D
OLD PSR ¾ ¼
NEW PSR 5/8 3/8
Gaining/(Sacrificing Ratio) (1/8) 1/8
Adjustment in Capital A/c 10000 (cr) 10000 (dr)
Ans. (b) Rs. 40000

Share of D in Profits ¼
Total Value of his share of goodwill 10000 (Rs. 5000 x 2)
Total value of goodwill of firm 40000 (Rs. 10000 x 4)
And. (b) Rs. 17700
Value of Goodwill =
The stock of Rs. 2200 is not adjusted as the same is considered in the opening stock of 2000-01
Ans. (a) Rs. 6000

Total Capital of the firm on the basis of C’s contribution 48000
(12000 X 4)
Less: Capital of A (10000)

Less: Capital of B (20000)
Less: Contribution of C (12000)
∴ Hidden Goodwill of the firm 6000
Ans. (c) Rs. 27000

Amount of goodwill brought by Z as his share 4500
PSR of Z in firm 1/6
∴ Goodwill of Firm (4500 X 6) 27000
Ans. (a) No. of years purchased multiplied with average profits.
Ans. (b) No. of years purchased multiplied with super profits
Ans. (c) Summation of discounted value of expected future benefits

Ans. (d) Super profit divided with expected rate of return
Ans. (b) Rs. 150000
Value of Goodwill =
Ans. (b) Rs. 8750
Average Annual Profit =

Super Profit = Average Annual Profit – Salary of Partner – (Normal Profit)
= Rs. 40375 – 12000 – (200000 X 12%)
= Rs. 4375/-
Value of Goodwill = Rs. 4375 x 2 i.e. Rs. 8750
Ans. Given Question is not correct as the liabilities and assets given are not equal.
Ans. (d) Rs. 13868

Super Profit as calculated in 17 above Rs. 4375
Annuity Factor @ discounting factor 10% for 4 year 3.1699
Goodwill as per Annuity method Rs. 13868
Ans. Same as above.

Ans. (a)
Particulars A B C
OLD PSR 3/6 2/6 1/6
NEW PSR 2/5 2/5 1/5
Gaining/(Sacrificing Ratio) (3/30) 2/30 1/30
Raising of Goodwill in Old PSR (Rs) 15000 10000 5000
Write off of Goodwill as per NEW PSR 12000 12000 6000
Adjustment in Capital A/c 3000 (cr) 2000 (dr) 1000(dr)
A direct entry can be passed in gaining sacrificing ration, sacrificing partner being credited and
gaining partners to be debited
Ans. (c) Sacrificing Ratio

As whenever a new partner is admitted the old partners have to sacrifice their share in profit
and hence the goodwill brought by new partner can be withdrawn in Sacrificing ratio.
Ans. (a) 3:1

Particulars A B
OLD PSR 5/8 3/8
NEW PSR 7/16 5/16
Sacrificing Ratio
i.e. 3/16 1/16
Ans. (c) Sacrificing Ratio

As whenever a new partner is admitted the old partners have to sacrifice their share in profit
and hence the goodwill brought by new partner can be withdrawn in Sacrificing ratio

Ans. (b) Rs. 35000

As the goodwill is been revalued the profit on revaluation will be credited to old partners in OLD
PSR and the balance in the goodwill account will be the revalued amount i.e. Rs. 35000
However this is not in compliance with AS 26 which requires the Self generated goodwill to be
written off.
Ans. (d) Location of the customers

Since the location of the customer is an external factor the same cannot affect the goodwill of
the firm.
Ans. (d) Either ‘b’ or ‘c’

Weighted average method can be followed only when the profits are in a trend, otherwise
weighted average method will not give the correct value of goodwill.
Ans. (b) Equally

As per the provisions of partnership act.
Ans. (a) Distributed to the partners in old PSR

The fund was created out of the profits before the admission of new partner.

Ans. (b) 35:21:24

The new profit sharing ratio can be found as follows:
So, the new sharing ratio = 35 : 21 : 24
Ans.: (d) 17:11:12
So the new PSR = 17:11:12
Ans. (b) Rs. 27000 and Rs. 18000 for A and B respectively
If C’s capital for 1/4th Share is 15000, the total capital of firm will be= Rs. 15000 x 4
i.e. Rs. 60000
So, A and B’s Combined Capital = Rs. 60000 – Rs. 15000 = Rs. 45000
A’s Share = Rs. 45000 x 3/5 = Rs. 27000
B’s Share = Rs. 45000 x 2/5 = Rs. 18000
Ans. (b) 14:7:7:4
So, New PSR = 14:7:7:4

Ans. (c) 300000;180000 and 120000

If Z’s capital for 1/5th Share is 120000, the total capital of firm will be= Rs. 120000 x 5
i.e. Rs. 600000
So, A and B’s Combined Capital = Rs. 600000 – Rs. 120000 = Rs. 480000
A’s Share = Rs. 480000 x 5/8 = Rs. 300000
B’s Share = Rs. 480000 x 3/8 = Rs. 180000
Ans. (d) Rs. 11250

If C shares 1/5th share, A & B’s combined capital is for 4/5th Share
So the Capital to be brought by C = A & B’s Combined Capital X 5/4 X 1/5
= Rs. 45000 X 5/4 X 1/5 i.e. Rs. 11250
Ans. (a) 8000:2000

Goodwill brought by new partner is shared amongst in there sacrifice ratio:
Sacrifice Ratio = Old Ratio – New Ratio
So goodwill brought by C of Rs. 10000 will be shared in ratio of 4 : 1 Or, 8000:2000
Ans. (c) Both

Share of goodwill of Mr. C is Rs. 10000

Goodwill brought in by him would be adjusted in capital A/c in gaining/losing ratio. Balance share
of goodwill is Rs. 5000 for 1/3rd Share of Mr. C.
So, total goodwill of the firm will be Rs. 15000 (i.e. 5000 x 3)
This will be raised in OLD PSR by passing following entry:
Goodwill A/c Dr. 15000
To A A/c 9000
To B A/c 6000
Note: Self generated goodwill is not to be raised; it should be written off in new PSR. However
option is not given in the question.
Ans. (b) Goodwill will be raised to Rs. 30000 in old PSR

Note: Self generated goodwill is not to be raised; it should be written off in new PSR. However
option is not given in the question.
Ans. (a) Cash brought in by C will only be credited to his capital account
As far as goodwill is concerned the settlement of the same is done outside the books, hence no
entry for the same will be passed.
Ans. (a) Old Profit Sharing

The profit or loss on revaluation account, is pertaining to the period prior to the admission of new
partner, and hence the same is distributed amongst the old partners in their old sharing ratio.

Ans. (a) Loss – 17500:10000:0

Loss on Revaluation = Decrease in Building – (Increase in Machinery + Drs. + Write back of Crs.)
= (200000 X 20%) – (80000 x 10%) – 1250 – 2750
= Rs. 28000
The loss on revaluation will be shared in old partners in OLD PSR i.e. 17500 : 10500
Ans. (c) Rs. 20000

Particulars Amount
Total Capital of firm on the basis of C’s Contri. (25000 X 6) 150000
120000
Less: Capital of A (50000)
Capital of B (30000)
Reserves (15000)
Contri. of C (25000)
Hidden Goodwill of Firm 30000
Share of C in G/W (30000/6) 5000
Capital of C (Contribution – Goodwill) 25000 – 5000 = 20000
Ans. (a) 260000 : 206000 : 205000

Partners Capital A/c
Particulars Amit Anil Atul Particulars Amit Anil Atul
By Balance b/d 250000 200000

By Cash/Bank 66000
To Amit & Anil 16000 By Atul A/c 10000 6000
(goodwill) (Goodwill 5:3)
To Balance c/d 260000 206000 50000
260000 206000 66000 260000 206000 66000
Ans. (b) 6500:6500:0

The profit/loss on revaluation is shared amongst old partners in their old PSR
In the given case Revaluation Profit = Rs. 8000 + Rs. 5000 i.e. Rs. 13000
The same will be shared by A & B as 6500 : 6500
Ans. (a) A & B’s account credited with Rs. 500 each
Entry when the goodwill is raised: Entry to write off the goodwill:
Goodwill A/c Dr. 30000 A’s Capital A/c Dr. 10000
To A’s Capital 15000 B’s Capital A/c Dr. 10000
To B’s Capital 15000 C’s Capital A/c Dr. 10000
To Goodwill A/c 30000
The combined net effect of above two entries is to credit A & B’s A/c by Rs. 5000
Ans. (a) 31500:31500:20000

If C brings the capital of Rs. 20000 for his 1/3rd Share the capital balances of A & B will be Rs.
20000 each
Particulars A B C Particulars A B C
By Balance b/d 20000 20000

By Cash/Bank 30000
To Goodwill A/c 10000 10000 10000 By Goodwill A/c 15000 15000
by Revaluation A/c 6500 6500
To Balance c/d 31500 31500 20000
41500 41500 30000 41500 41500 30000

Ans. (b) Revalued Figure

When a new partnership agreement is entered into, the changes effected due to the same are
recorded in the books of account, hence the assets and liabilities are recorded at revalued figures.
Ans. (a) 3000:1500

Goodwill brought by C Rs. 9000 Half of which i.e. Rs. 4500 withdrawn by old partners in OLD PSR
Ans. (a) 47000:33500:20000

Particulars P Q R Particulars P Q R
By Balance b/d 40000 30000

By Cash/Bank 20000
To Cash/Bank A/c 3000 1500 By Goodwill A/c 6000 3000
By Revaluation A/c 4000 2000
To Balance c/d 47000 33500 20000
50000 35000 20000 50000 35000 20000

Ans. (c) Both
 When the goodwill is not to be carried in the books the same will be shared amongst the old
partners in OLD PSR
 The amount brought in by new partner for goodwill will be shared by old partners in
Sacrificing Ratio.
Ans. (d) Goodwill

As the value of goodwill is determined on the basis of various factors, so when a new partner is
admitted the Goodwill of the firm has to be revalued and the same is accounted for and shared
amongst the old partners in OLD PSR.
Ans. (b) X only

As at the time of admission of new partner Z X is the only partner sacrificing his profit, hence the
amount of goodwill brought by new partner will be credited only to X.
******

Ans. (c) Is liable for obligations incurred before his retirement

As per the provisions of partnership act, rights and duties of partners.
Ans. The options given are wrong, as per new material correct option is (a) 47:25
This can be calculated as follows:
A’s new Share = C’s new Share =

So, the new ratio will be 47:25
The Given question is not correct, and deleted from the new material.
Ans. (d) 6000:4000:2000

The reserves standing on the balance sheet will be shared between old partners in OLD PSR.

Ans. (c) Rs. 156250 and Rs.68750

Particulars A’s Capital C’s Capital
Old Capital 100000 50000
Add: B’s Capital shared in the ratio of 3:1 56250 18750
New Capital 156250 68750
Ans. (a) Gaining Ratio

As on retirement of a partner the remaining partners gain on their PSR and hence the
compensation amount is shared amongst remaining partners in gaining ratio.
Ans. (d) ‘a’ and ‘b’

Joint life policy is taken to provide funds to pay to the legal representatives of deceased partner,
without upsetting the working capital of firm, it is usual to take out a joint life policy on the lives
of partners. JLP may be taken jointly on the life of all partners or severally.
Ans. (b) Surrender Value

As the JLP is taken jointly for all partners, at the time of retirement the partnership firm receives
the surrender value of the said policy.
Ans. (d) Surrender Value for all the partners

When the Joint Life Policy is taken severally for all partners, at the time of retirement the firm
receives the surrender value of all the partners.

Ans. (a) Rs. 50000 credited to all partners in old ratio

When a partner retires from the partnership firm, the firm receives the surrender value of Joint
life policy, and as the premium is charged to the revenue of the firm, the surrender value is
distributed amongst all the partners in their OLD PSR.
Ans. (d) No treatment is required

As the JLP is maintained at surrender value, no effect for the adjustment of surrender value of
JLP will be made in the books of partnership firm. However the Continuing partners accounts
will be debited in Gaining Ratio and the retiring partners account will be credited with his share
in JLP. (the option is not given hence none of the above)
Ans. (d) Distribute JLP reserve account in old PSR

When this method of recording the JLP is followed, premium paid is debited to the policy
account. At the end of the year amount equal to premium is charged to P/L A/c and credited to
JLP Reserve A/c. On retirement of the partner the amount received is credited to Joint life Policy
A/c and the amount standing to the credit of JLP reserve is transferred to all partners in OLD
PSR.

Ans. (b) Rs. 8000 and Rs. 4000

Share of Goodwill of B 30000 x2/5 12000
Will be contributed by A & C in their old ratio 2:1
A’s Share 12000 X 2/3 8000
C’s Share 12000 X 1/3 4000
Ans. (d) Any of the above method

Claim payable to the retiring partner is settled with the mutual consent of the continuing and
retiring partner. So if they decide the claim can be paid fully or partly in Cash, and the remaining
amount, if any is treated as loan to firm.
Ans. (a) Rs. 70820

B’s Capital 50000
Share of reserves (15000 X 2/5) 6000
Share of Goodwill (30000 X 2/5) 12000
Share of Rev. Prof.(7050 X 2/5) 2820
Total Amount Payable on Retirement 70820
Ans. (c) Rs. 10000

Goodwill of the firm will be shared amongst all the partners in their OLD PSR
Hence, C’s Share = Rs. 60000 X 1/6 = Rs. 10000

Ans. (b) Credited to partners capital account Rs. 24000 in profits sharing ratio
When the goodwill is raised all partners are credited with the goodwill in their OLD PSR.
Ans. (d) Either ‘b’ or ‘c’

When the surrender value received is less than the amount appearing in JLP account, it is loss to
the firm. This can be treated in both the ways, either debit to revaluation account the balance of
which is transferred to capital accounts or directly debiting the partners capital account in the
profit sharing ratio.
Ans. (b) Rs. 60000 credited to joint life policy account.

As the premium paid on JLP is debited to JLP A/c the amount received against the same is
credited to the same account.

Ans. (b) JLP Reserve balance credited to Partner’s Capital Account in old PSR
The amount received against JLP is credited to Joint Life Policy A/c and the balance on JLP
reserve will be transferred to Partners in old profit sharing ratio.
Ans. (c) credit A’s Account with Rs. 40000 and debit B’s Capital with Rs. 10000 and C’s Capital Account
with Rs. 30000
When the goodwill is not to be raised the share of goodwill of Retiring partner is credited to his
account and the continuing partners are debited with the same amount in their gaining ratio.
A’s Share of Goodwill ( Rs. 140000 X 2/7) 40000
B’s Gaining Ratio (1/2 – 3/7) 1/6
C’s Gaining Ratio (1/2 – 2/7) 3/6
So the Share of Goodwill of A will be shared in ratio of 1:3 - 10000:30000
Ans. (a) Rs. 350000 each

Firm’s Capital Before Retirement of A 700000
New PSR 1:1
Share of Capital of B & C in NEW PSR 350000:350000

Ans. (d) Rs. 350000 credited to JLP account

When the Joint Life Policy account is appearing in the balance sheet, any amount received
against the same is credited to JLP account only.

Ans. (c) suspense

As the death of the partner may take place at any time during the year the, the profit till that
point is not the profit for the year, hence the share of profit of deceased partner is shown in P/L
suspense account.
Ans. (d) All of the above

As in all the cases the constitution of the partnership firm changes. Due to the constitutional
change the incoming or outgoing partner should not get benefit or suffer from any change in the
valuation of assets and liabilities prior to admission/retirement or death of the partner.
Ans. (d) Capital, profits till date, goodwill, joint life policy, share in revalued assets and liabilities
In absence of a Partnership Agreement the provisions Partnership Act will apply, and hence all
the above will be payable to the executor of deceased partner.
Ans. (c) 6%
As per Sec. 37 of the Partnership Act.

Ans. (a) 50000:25000:25000
On death of the partner, amount of the policy will be received and shared amongst the partners
in their PSR, however as Rs. 20000 is already appearing in the balance sheet, Joint life Policy A/c
will be credited by Rs. 20000 and balance Rs. 100000 will be shared amongst the partners in the
ratio of 2:1:1
Ans. (a) Rs. 20700
Value of Goodwill = = Rs. 82800
Share of D = Rs. 82800 X 4/16 i.e. Rs. 20700
Ans.
Ans. (d) Rs. 216000 & Rs. 144000
Value of Goodwill of Firm = = Rs. 720000
A’s Share in Goodwill = 720000 x 5/10 i.e. Rs. 360000

This will be paid by B & C in their PSR i.e. 3:2
So the amount paid will be Rs. 216000 and Rs. 144000

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-: 1 :- PARTNERSHIP/ICAI/MCQs LR

Accounting – Logical Reasoning – ICAI Module – Partnership (Unit 1)

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Meeta’s salary = 4,000 X 12 = Rs. 48,000

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Time frame involved: 1 month of contribution + 12 months of withdrawal = 13 months.

Thus average time to be considered = = 6.5 months

Partner’s Fixed Capital A/c will have ‘Credit’ Balance.

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Accounting – Logical Reasoning – ICAI Module – Partnership (Unit 2)

Ans. (b) Rs. 255000

Ans. (b) Rs. 84000

Ans. (d) None of the above

Ans. (c) Rs. 7200000

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Ans. (b) D will pay to B Rs. 10000

Ans. (b) Rs. 40000

And. (b) Rs. 17700

Ans. (a) Rs. 6000

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Ans. (c) Rs. 27000

Ans. (a) No. of years purchased multiplied with average profits.

Ans. (b) No. of years purchased multiplied with super profits

Ans. (c) Summation of discounted value of expected future benefits

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Ans. (d) Super profit divided with expected rate of return

Ans. (b) Rs. 150000

Ans. (b) Rs. 8750

Average Annual Profit =

Ans. (d) Rs. 13868

Ans. Same as above.

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Ans. (c) Sacrificing Ratio

Ans. (a) 3:1

i.e. 3/16 1/16

Ans. (c) Sacrificing Ratio

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Ans. (b) Rs. 35000

Ans. (d) Location of the customers

Ans. (d) Either ‘b’ or ‘c’

Ans. (b) Equally

Ans. (a) Distributed to the partners in old PSR

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Accounting – Logical Reasoning – ICAI Module – Partnership (Unit 3)

Ans. (b) 35:21:24

So, the new sharing ratio = 35 : 21 : 24

Ans.: (d) 17:11:12

So the new PSR = 17:11:12

Ans. (b) 14:7:7:4

So, New PSR = 14:7:7:4

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Ans. (c) 300000;180000 and 120000

Ans. (d) Rs. 11250

Ans. (a) 8000:2000

So goodwill brought by C of Rs. 10000 will be shared in ratio of 4 : 1 Or, 8000:2000

Ans. (c) Both

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011

Ans. (b) Goodwill will be raised to Rs. 30000 in old PSR

Ans. (a) Old Profit Sharing

ZPA: EDUCATING GENERATIONS ZPAPL/CPT/ACCOUNTS/2011