Max Marks 30 27/03/22 Accountancy (unit 1) Max Time 1 hour

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1 H & E. Are in the partnership since 1 April, 2006. No partnership agreement was made. They 2
contributed. ₹ 4,00,000 And ₹ 1,00,000 respectively as capital. In addition E Advanced an amount of ₹
1,00,000 to the firm. On 1st October 2006. Due to illness E could not participate in business activity from
1st August. To 30th September 2006. The profit for the year ended on 31 st March 2006 amounted to ₹
1,80,000. Dispute has arisen between. H&E. E claims. 1. He should be given interest at the rate of 10%
per annum on capital and loan. 2. Profits should be distributed in proportion of capital.
H claims 1. Profits should be distributed equally. 2. He should be allowed. ₹ 2000 per month as a salary
for the period he managed the business. 3. Interest on capital and loans should be allowed at the rate
of 6% per annum. Settled the dispute between the partners.
2 A&B are partners. A Withdraw regularly ₹ 500. In the beginning of every month. B Withdraw. ₹ 2,000. 2
At the end of each quarter. The rate of interest. 15% per annum. Calculate interest in drawings.
3 Tom and Jerry, both partners in a firm sharing a profit in the ratio of five to three. During the year 2
ended on 31st March 2015. Tom had withdrawn. ₹ 4000 at the end of every month. Pass necessary
journal entries. For charging interest on drawings. Assuming that the capital of the partners were
fluctuating.
4 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.
5 In the absence of partnership deed, a partner is entitled to an interest on the amount of additional 1
capital advanced by him to the firm at a rate of: (A) entitled for 6% p.a. on their additional capital, only
when there are profits. (B) entitled for 10% p.a. on their additional capital (C) entitled for 12% p.a. on
their additional capital (D) not entitled for any interest on their additional capitals.
6 Rohit, Raman and Raina are partners in a firm. Their capital accounts on 1st April, 2019, stood at 6
₹2,00,000, ₹1,20,000 and ₹1,60,000 respectively. Each partner withdrew ₹15,000 during the financial
year 2019-20. As per the provisions of their partnership deed:
(a) Interest on capital was to be allowed @ 5% per annum.
(b) Interest on drawings was to be charged @ 4% per annum.
(c) Profits and losses were to be shared in the ratio 5:4:1.
The net profit of ₹72,000 for the year ended 31st March 2020, Prepare P & L appro A/c and partners
capital A/c
7 A,B & C are Partners sharing a profit and losses in the ratio of 2 : 2 : 1. The capital are ₹ 5,00,000, ₹ 6
3,00,000 and ₹ 1,00,000. Partners are entitled to interest on capital at the rate of 5% per annum. B
entitled for salary of ₹ 2000 per month. First 40,000 divisible in the ratio of four is 3:3:2. Any profit in
excess of 40,000 are divisible in their profit sharing ratio. Prepare P & L appropriation account.
8  A and B are partners sharing profits and losses in the ratio of 3:2. They invested capitals of ₹1,00,000 6
and ₹ 50,000 respectively. Compute interest on capital and show distribution of profits in each of the
following alternative cases:
(i) If the partnership deed is silent with regards to interest on capital and the profits for the year
are 8,000.
(ii) If the partnership deed provides for interest on capital @ 5% p.a. and the profits for the year are
₹7,500.
(iii) If the partnership deed provided for interest on capital @5% p.a. and the profits for the year are ₹
9,000.
(iv) If the partnership deed provided for interest on capital @ 5% p.a. losses for the year are 76,000.
(v) If the partnership deed provided for Interest on Capital @ 5% and the profits for the year are ₹
3,000.
(vi) If the partnership deed provides for Interest on Capital @ 5% p.a. even if it involves the firm in
loss and the profits for they year are 5,000
9 Priya and Kajal are partners in fixed capital accounts, on April 1, 2006 were: Priya, ₹ 6,00,000 and Kajal, 4
₹ 8,00,000. The profit of the firm for the year ended March 31, 2007 is 1,26,000.
Calculate their shares of profits: (amount to be credited to their capital A/c
(a) when there is no agreement in respect of interest on capital, and
(b) when there is an agreement that the interest on capital will be allowed @ 12% p.a.