ICM Test

+2Accounts
“
Par
tner
ship-
Fundament
als”
Ti
me=1hour Maxmar
ks=20

1.D,EandFwer epartnersinafir
m shari
ngP/ Li
nt her at
ioof5:7:
8.TheirFixedcapi
tal
s
wereRs5, 00,000;Rs7, 00,
000andRs8, 00,
000r espect iv
ely.Thei
rPar t
ner shi
pdeed
provi
dedforthef oll
owing:
(i)Inter
estoncapi tal@ 10%p.a.
(ii
)SalaryofRs10, 000p. m.toF
(ii
i)Int
erestondr awings@ 12%p. a.
st
Dwi t
hdrewRs40, 000on31 Dec2017, t
hef i
rm earnedapr of
itofRs3,50,000.
st
PrepareP&Lappr opriat
ionA/ cf
ortheyearended31 Dec2017 ( 3Mar ks)

2.Ram &Mohanst art

edbusinesson1stJan2017wi thacapi talofRs4,00,000&Rs
st
2,50,
000r especti
velysharingprofi
tsi
nrati
oof3:2.On1 Jul y2017,t
heydeci dedthat
capitalofthefirm shouldbeRs6, 50,
000anditshouldbeshar edbypar t
nersi nt
heir
Profi
tshar ingrat
io.Accor di
ngl
y ,t
heydeci
dedtoi nt
roduceorwi t
hdraw t
heircapital
.
Inter
estoncapi t
ali sall
owed@ 10% p. a.Cal
culateinterestoncapi t
alfort heyear
st
ended31 Dec2017. (3marks)

3.AandBar epar tner

si nthef irm sharingpr of
it
sint heratioof3: 1contr
ibutingRs
st
1,10,000eachast heircapitalon1 Jan2017.Thei rpartnershipdeedpr ovidest he
following;
(i
)Par tnersareal l
owedI nterestoncapi tal@ 5% p. a.andar echar gedintereston
drawi ngs@ 6%p. a.
(i
i)A i sent it
ledt oremuner ati
onof10% ofnetpr of i
tforsecur i
ngcont r
act sfrom
cust omer s
(i
ii)Bi salsoentitledtoacommi ssi
onof10%ofnetpr ofi
tafterchargingcl
ause(ii
)
Ofdeed
(i
v )Ai sentitl
edt orentofRs1, 000p. m.fortheuseofhi spremisesbyt hefi
rm
(v)Dur ingthey earAwi t
hdrewRs350atbegi nni
ngofev er
ymont handBwi thdrewRs
550atendofev erymont h.
TheNetpr ofit
soft hefirm during2017bef oremakingabov eadj ustment
swas Rs
1,11,000.Pr epareP&LAppr opriati
onA/ cfortheyear2017. (5marks)

4.P andQ ar
epar
tner
sint
hef
ir
m wi
thcapi
talofRs3,
00,
000andRs2,
00,
000
respectivel
y .Pgav eal oanofRs1, 50,
000t ofir
m.Thepr ofi
tofthefirmi sbef
ore
st
all
owingi nterestonloanamount edtoRs75, 000forthey earendi
ng31 Mar ch2017.
Showdi str
ibuti
onofprof i
tafterconsideri
ngthef ol
lowi
ngs:
(i
)Interestoncapi t
albeal l
owed@ 5%p. a.
(i
i)Interestondr awingsi schar ged@ 6% p. a..Drawi
ngsofPandQdur i
ngt hey
ear
wereRs50, 000&Rs40, 000respect i
vely.
(i
ii
)Pi sal l
owedcommi ssion@ 1%onsal eswhichisRs3,00,000
(i
v)Pi sent i
tl
edtoacommi ssion@ 5%ofnetpr ofi
taft
erchar gi
ngcommi ssi
onofP
andhi sown.
(v)10%ofdi vi
sibl
eprofitbetransf er
redtoreserveA/c (4marks)

5.A,BandCar epar tnerswi t

haf ixedcapi tal
sofRs2, 00,
000;Rs1, 50,
000andRs
1,
00,000r espect i
v ely.Theyshar eprofitsupt oRs36, 000i nthei
rcapi talrati
oandresti
n
equalproportion.Aadv ancedl oanofRs50, 000t of i
rm.Thepar tnershipdeedprovi
ded
asunder:
(i
)Inter
estoncapi tal@ 5%p. a.andi nterestondr awi ngs@ 3%
(i
i)Drawingsofpar tnerswer eRs20, 000each
(i
ii
)Bwasent itledt or ent@ Rs1, 000p. m.f orprov i
dinghi spremi sest ofir
m
(i
v)Cwasent itledt ocommi ssion@ 5%ofnetpr ofitaftercharginghi scommi ssi
on.
st
Thenetpr of
itbef or et heseadj ust
ment sf ort hey earendi ng31 Mar ch2017wasRs
99,000assumi ngt hecur rentaccountbal ancesofpar tnerswer e:ARs5, 000(Cr.
);BRs
4,
000( Cr.)AndCRs3, 000( Dr)
PrepareP&Lappr opr i
at i
onA/ c,Capi
tal A/candcur rentaccount sofpar t
ners.
(5mar ks)