Indraprastha WORLD SCHOOL

Paschim Vihar, New Delhi-110063

SESSION 2023-24
SPECIAL TEST, MAY 2023
ACCOUNTANCY (055)
SET - A
Class: XII Maximum Marks: 20
Date: 01.05.2023 Time: 45 Minutes

GENERAL INSTRUCTIONS:
 This question paper contains 10 questions.
 Please write the serial number of the question clearly.

Accounting for Partnership Firm - FUNDAMENTALS & METHODS OF VALUATION OF GOODWILL

1. Which of the following is true regarding Salary to a partner , when the firm maintains fluctuating capital 1
accounts?
(A) Debit Partner’s Loan A/c and Credit P & L Appropriation A/c.
(B) Debit P & L A/c and Credit Partner’s Capital A/c.
(C) Debit P & L Appropriation A/c and Credit Partner’s Current A/c.
(D) Debit P & L Appropriation A/c and Credit Partner’s Capital A/c.

2. A, B and C were Partners with capitals of Rs.50,000; Rs.40,000 and Rs.30,000 respectively carrying on
business in partnership. The firm’s reported profit for the year was Rs.80,000. As per provision of the Indian
Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that
no interest has been provided on an advance by A of Rs.20,000 in addition to his capital contribution.
(A)Rs.26,267 for Partner B and C and Rs.27,466 for Partner A
(B)Rs.26,667 each partner.
(C)Rs.33,333 for A Rs.26,667 for B and Rs.20,000 for C
(D)Rs.30,000 each partner 1

3. A and B are partners. B draws a fixed amount at the end of every month. Interest on drawings is charged @15% 1
p.a. At the end of the year interest on B’s drawings amounted to Rs 8,250. Drawings of B were:

(A) Rs 12,000 p.m. (B) Rs 10,000 p.m. (C) Rs 9,000 p.m. (D) Rs 8,000 p.m

4. Karan, a partner advanced a loan of Rs. 60,000 to the firm on 30th November 2022. The firm incurred a loss of
Rs.15,000 during the year ending 31st March, 2023. In the absence of partnership deed interest on loan allowed
to Karan will be
(A) Rs 3,600 (B) Rs 900 (C) Rs1,200 (D) Rs1,800

5. Reet and Mishti were partners in firm sharing profits and losses in the ratio of 3:2. Their capitals were
₹1,20,000 and ₹2,40,000 respectively. They were entitled to interest on capital @ 10%. The firm
earned a profit of ₹ 18,000 during the year. The interest on Reet’s Capital will be
(A) ₹ 12,000 (B) ₹ 10,800 (C) ₹ 7,200 (D) ₹ 6,000

6. A partner withdrew Rs.5000 in the beginning of each quarter and interest on drawings was calculated as
Rs. 1500 at the end of accounting year 31st March 2022.What is the rate of interest on drawings charged?
Also give journal entry for charging interest on drawings, assuming that capitals of the partners was
fixed.
7. A and B are partners sharing profits and losses in the ratio of 2:3.Their Balance Sheet was as under:

Liabilities Rs. Assets Rs.

Capitals Sundry Assets 2,00,000

A 90,000

B 1,10,000 2,00,000
2,00,000 2,00,000

The profits for the year ended 31st March ,2023 were divided between the partners without allowing
interest on capital @5% p.a. and commission to B Rs.1000 per quarter. The drawings of the partners
during the year were A Rs.2500 per month and B Rs.10,000 per quarter.

Pass necessary journal entry to rectify the error. Show your workings clearly. 5

8. The Average profit earned by a firm is Rs.80,000 and the normal rate of return in a similar business is
10%. If the goodwill of the firm is Rs.1,00,000 at 4 times purchase of Super Profit, find the Capital
employed by the firm. 3

9. X and Y are partners in a firm sharing profits and losses in the ratio of 2 : 1. Their fixed capitals are Rs.
5,00,000 and Rs. 3,00,000 respectively. Interest on capital is allowed @ 9% p.a. while interest on
drawings is charged @ 12% p.a. X is allowed a salary of Rs. 4,000 per month. Interest on Y’s loan of
Rs.2,00,000 is to be provided @ 6% p.a. During the year ended 31st March, 2019, X’s drawings were
Rs.60,000 and Y’s drawings were Rs. 72,000. 5% of the Net Profit is to be transferred to General
Reserve. Incomplete Profit and Loss Appropriation Account for the year ended 31st March, 2019
prepared by the firm is given below :

Incomplete Profit and Loss Appropriation Account for the year ended 31st March, 2019 is given below:

To Interest on Capital : By Profit and Loss A/c

X’s Current A/c .......... Net Profit b/d ..........

Y’s Current A/c ..........

By Interest on Drawings :

To Salary

X’s Current A/c ........ X’s Current A/c ..........

Y’s Current A/c .........

To General Reserve 15,000

To Profit transferred to :

X’s Current A/c ..........

Y’s Current A/c ..........

Complete the Profit and Loss Appropriation A/c of X and Y for the year ended 31st March, 2019