FUNDAMENTALS OF PARTNERSHIP 01

Class 12- Accountancy

Time Allowed: s(1:30 Min) Maximum Marks: 50
1. Ram and Rohit started business on 1st April 2012 with capitals of ? 2,50,000 and [1]
.1,50,000 respectively. On the 1st of October 2012, they decided that their capitals
should be Rs.2,00,000 each. The necessary adjustments in thecapitals were made
by introducing or withdrawing cash. Interest on capital is allowed at 8% p.a.
Calculate the interest on Rohit's Capital on March 31, 2013.
a) 12,050 b)714,000
c) 12,000 d) 14,050
2. Calculate the Interest on Drawings of Ram @10% p.a for the year ended 31st March [1]
12. If Ram withdraws drawings Rs. 2000p.m at the beginning of every month.
a) 1,300 b)1,100
c) 1,400 d)?1,200
3. Sometimes a partner may be guaranteed a minimum amount of his share in profits [1]
by
a) Always by two partners b) Allpartners
c) Both All partnersand in agreed d) In agreed ratio by all old
ratio by all old partners partners
4. Interest on capital will be paid to the partners if provided for in the partnership [1]
deed but only out of:
a) Goodwill b) Reserves
c) Accumulated Profits d) Profits
5. A, B and Care partners in a firm sharing profits and losses in the ratio of 3:2:1 with [1]
a guarantee of minimum profits toCfor Rs. 15,000. Total profitsof the firm for the
year ended on December 31, 2012, amounted Rs. 1,20,000. Any excess payable to C
on account of such guarantee shall be borne by B. What amount of profit will be
given to the partners?
a) A= 760,000, B = 740,000, C = b) A= 20,000,B = 20,000,C=
720,000 730,000
c) A= 270,000,B = 50,000,C= d) A= 80,000,B = 750,000,C =
240,000 T60,000
6. Profitand Loss appropriation account differs from Profit and Loss account as it is [1]
prepared by
Onlypartnership firm b) Only sole proprietorship
 c) Only company d) All business firms
7.
A, Band Care partners. They admit Dand guarantee that his share of profit will [1]
not be less than Rs. 20,000. Profits to be shared 4:3:3:2 respectively. Total profits
were Rs. 96,000. It was agreed that the deficiency amount (if any) payable to Dover
his share will be borne by A, Band Cin the ratio of 3:2:1.Calculate the share of
profit for each partner.
a) A= 33,000, B= 23,337, C= b) A=*30,000, B= 23,667,C=
723,333 and D= 740,000 23,333 and D= 30,000
c) A= 730,000, B= 722,667, C= d) A=730,000, B= (22,667, C=
23,333 and D= 10,000 23,333 and D= 20,000
8
A, Band Care partners sharing profits equally. Aand Bhas given a minimum (1]
guarantee of Rs. 8,000 to the C. How much amount of profit Cwill get when the
profit of the firm is Rs.30,000.
a) 22,000 b) 10,000
c) 30,000 d) 8,000
9. Profit and Loss Appropriation Account is prepared.
a) After calculating Net Profit b) After calculating Gross Profit
c) Before calculating Net Profit d) Before calculating Gross Profit
10. L, M andN are partners in a firm sharing profit and loss in the ratio of 2:3:5. Their [1]
fixed capitals were Rs.15,00,000, Rs. 30,00,000 and Rs. 60,00,000 respectively. For the
year 2011 interest on capital was credited to them @12% instead of 10 %. Pass the
necessary journal entry.
a) L's Capital A/cDr. 15,000 and M's b)N's Current
Capital A/c Cr.15,000 A/c... Dr. 15,000
To M's
Current A/c 12,000
|To L's
Current A/c 3,000

c)N's Current d)s Current

|A/c...Dr. |15,000 A/C ... Dr. |15,000
ToL's To N's
12,000 12,000
Current A/c Current A/c
|To M's To M's
|Current Alc |3,000 3,000
Current A/c
11. When partners accounts are fixed where the drawings will be recorded? [1]
a) Neither in Current account nor b) Capital account
in Capital account
c) Both Current account and d) Current account
Capital account
 12. Which account is to berecorded on debit side for charging the interest on partner's [1]
loan?

a) Interest on Partner's Loan b) Partner's Capital A/c

Account
c) Partner's Current A/c d) Partners Loan A/c
13.
A, Band Care partners sharing profits and losses in the ratio of 2:2:1 respectively. A [1]
isentitled to a commission of 10% on net profit before charging such commission.
Net profit before charging commission is Rs.1,20,000. Find out commission payable
toA.
a)?1,200 b) ?12,200
c) 20,000 d) 12,000
14. R, S and T are partners in a firm. They decided to share profits up to Rs. 10,000 in [1]
the ratio 30%, 50% and 20% respectively. Above this amount, profits are shared
equally. If the profits of the firm for the year was Rs. 25,600. Distribute the profit.
a) R= 78,200, S= T10,200 and T= b) R= 79,200, S= 7,200 and T=
7,200 78,200
c) R= 10,200, S= 79,200and T= d) R=12,200, S= 78,200and T=
7,200 27,200
15. Following are essential elements of a partnership firm except: [1]
a) There isan agreement between b) Partnership agreement is for
all partners some business

c) Atleast two persons d) Equal share of profits and losses

16. What journal entry is to be recorded in the books of account when Balance of Profit [1]
and Loss Account is transferred to the Profit and Loss Appropriation account.
a) Profit and Loss A/c Cr. b) Profit and Loss A/c Dr.
To Profit and Loss Appropriation To Reserve A/c
A/c
c)Profit and Loss A/c Dr. d) Profit and Loss A/c Dr.
To Profit and Loss Appropriation To capital A/c
A/c
17. Naman, Manik and Arpit are partners sharing profits and losses in the ratio of 5:3 [1)
:2. The partnership deed provides for charging interest on drawing's @10% p.a.
The drawings of Naman, Manik and Arpit during the year ending December 2004
amounted to Rs. 20,000, Rs. 15,000 and Rs. 10,000 respectively. After the final
accounts have been prepared, it was discovered that interest on drawings has not
been taken into consideration. Give necessary adjusting entry.
a) Manik A/c... Dr 150 b)Naman A/c ... 150
Arpit Afc... Dr 100 Dr
To Naman A/c 250 Arpit A/c... Dr 100
ToManik A/c 250

c) Naman A/c... Dr150 d) Aprit A/c ... Dr 7s

Manik A/C... Dr 100 Manik A/C ... Dr 50
 To Arpit A<c |250 To Naman A/c 125
18. Calculate interest on the drawing if Partner withdrew Rs. 6,000 at the end of each
quarter. Rate of interest on drawings is 10% p.a. and the accounting period is 1st [1]
January to31st December.
a) Rs.900 b) Rs. 1,800
c) Rs. 975 d)Rs. 950
19. A, Band Care a partner in a firm. They have introduced Rs.
Rs. 30,000 respectively; and agreed to distribute profit or loss50,000, Rs. 40,000 and
in the ratio of their
[1]
capital. The firm earned a profit of Rs. 60,000 during the year. Distribute profit
among partners. Pass journal entry.
a)P and LA/c ... b)P and L
Dr. 60,000
Appropriation 60,000
ToA's A/c |15,000 |A/c...Dr.
To B's A/c |20,000 To A's Capital
|A/c |25,000
To C's A/c |25,000
To B's Capital
|A/c |20,000
To C's Capital
|A/c 15,000

c)P and L d)P and LA/c ...

|Appropriation 60,000 Dr. j60,000
A/c... Dr.
To A's A/c 15,000
To A's A/c |20,000 ToB's A/c |25,000
To B's Ac |25,000 To C's A/C |20,000
To C's A/c 15,000
20. If rent payable to a partner is Rs. 10,000 and there is a loss in the firm of Rs. 15,000. [11
How much rent will be paid to the partners?
a) 15,000 b) 25,000
c) 5,000 d) 10,000
21. Match the following: [2]
ColumnA Column B
|(a) Minimum Number of members. (i)8.
|(b)Maximum number of member for bank. (ii) 2.
(c) Maximum number of member for other. (iiil) 10.
|() Types of partners. (iv) 20.
22. Match the following [2]
ColumnA Column B
(a) Year of Indian Partnership Act. |(i) Separate Business entity.
(b)Credit balance of current account. (ii)1932.
 (c) Content of Partnership deed. (i) Liability Side.
(d) Status of firm. (iv) Profit Sharing Ratio.
23. Radha and Raman are partners in a firm sharing profits and losses in the ratio of [3]
5:2. Capital contributed by them is Rs. 50,000 and Rs. 20,000 respectively. Radha
was given salary of Rs. 10,000 and Raman Rs. 7,000 per annum. Radha advanced
loan of Rs. 20,000to firm withoutany agreement to rate of interest in deed while in
deed rate of interest on capital was mentioned as 6% p.a. Profits for the year are Rs.
29,400. Prepare Profit and Loss Appropriation Account for the year ending 31st
March 2015.

24. State the provision of Partnership Act, 1932, in the absence of a Partnership Deed [3]
regarding
i. Interest on Partners' Drawings and
ii. Interest on Advance other than capital.
25. Jand Kare partnerssharing profits and losses in the ratio of 3:1. Their capitals at [4]
the end of the financial year 2016-2017 were 1,50,000 and 75,000. During the
year 2016-2017, J's drawings were 20,000 and the drawings of Kwere 5,000,
which had been duly debited to partner's capital accounts. Profit before charging
interest on capital for the year was Rs.16,000. The same had also been debited in
their profit sharing ratio. Khad brought additional capital of 16,000 on October 1,
2016. Calculate interest on capital @12% p.a. for the year 2016-2017.
26. On 31st March 2005, after the closing of books of accounts, the Capital Accounts of [8]
A, B andC stood at Rs 24,000 Rs 20,000 and Rs 12,000 respectively. The profit for the
year Rs 36,000 was distributed equally. Subsequently, it wasdiscovered that
interest on capital @ 5% p.a. had been omitted. The profit-sharing ratio was 2 :2:1
.Pass an adjustment Journalentry
27. A
and B are partners in afirm sharing profits and losses in the ratio of 3 : 2.The [8]
following was the Balance Sheet of the firm as on 31-3-2010 :
Liabilities () Assets )
Capitals: A 60,000 Sundry Assets 80,000
B 20,000
80,000 80,000
The profits 30,000for the year ended 31-3-2010 were divided between the
partners withoutallowing interest on capital @12% p.a. and salary to A@ 1,000
per month.
During the year, A withdrew 10,000 and B 20,000.
Pass the necessary adjustment journal entry and show your working clearly.