ISHANT COMMERCE CLASSES

Test: Accountancy
M.M 25 Accounting for Partnership Firm-Fundamentals 17/11/2023
1. Forming a Partnership Deed is :
a. Mandatory
b. Non Mandatory
c. Mandatory in Writing
d. None of the above
2. On 1st January 2019, a partner advanced a loan of Rs. 1,00,000 to the firm.In the absence of agreement,
interest on loan on 31st march 2019 will be:
a. Nil
b. Rs. 1,500
c. Rs. 3,000
d. Rs. 6,000
3. In the absence of partnership deed , partner share profit and losses:
a. In the ratio of their capital
b. In the ratio decided by the court
c. Equally
d. In the ratio of time devoted.
4. Is rent paid to a partner appropriation of profits?
a. It is appropriation of profit
b. It is not appropriation of profit
c. If partner’s contribution as capital is maximum
d. If partner is a working partner.
5. Net profit of a firm Rs. 79,800. Manager is entitled to a commission of 5% of profits after charging his
commission. Manager’s Commission will be:
a. Rs. 4,200
b. Rs. 380
c. Rs. 3,990
d. Rs. 3,800

6 X, Y and Z are in Partnership with Capital of Rs. 1,20,000; Rs. 1,00,000 and Rs. 8,000 (Dr.) respectively On
1st April, 2017. Their Partnership Deed provide for the following:

(a) 7.5% of Net profit to be transferred to General Reserve.

(b) Partners are to be only allowed Interest on Capital @ 5% p.a. and are to be charged Interest on Drawing
@ 6% p.a.
(c) Z is entitled to a salary of Rs. 7,000
(d) X is entitled to a remuneration of 10% of the Net Profit before making any appropriations.
(e) Y is also entitled to a commission of 8% of the Net profit before charging Interest on Drawing but after
making all above appropriations.(included his commission also)

During the year, X withdraw Rs. 1,000 at the beginning of every month, Y Rs. 1000 during the month
and Z Rs. 1000 at the end of every month. On 1st October 2017, Z granted a loan of Rs. 6,00,000.
The Manager is entitled to a salary of Rs. 1,000 p.m and a commission of 10% of net profits after charging
his salary, Interest on Loan and his commission.
The Net profit of the firm for the year ended 31st March, 2018 before providing for any of the above
adjustments was Rs. 1,62,000.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018 [6]
7 A and B are partners. The net divisible profit as per Profit and Loss Appropriation A/c is Rs. 2,50,000. The total
interest on drawing is Rs. 4,000 and A’s salary Rs. 4,000 per quarter and B’s salary is Rs. 40,000 per annum.
Calculate the net profit/loss earned during the year. [2]
8. Amit, Bimal and Chaman are partners sharing profits and losses equally. Amit and Chaman gave a loan to the
firm on 1st October 2020 of Rs.1,00,000 and Rs. 1,50,000. It is agreed that interest @ 9% p.a. will be paid.
Books of account of the firm are closed on 31st march 2021. Interest on loan is yet to be paid.
Pass journal entries related to Loan and Prepare Loan Accounts. [2]
9. Jay, Vijay and Karan were partner of an architect firm sharing profit and loss in 2 : 2 : 1. Their Partnership Deed
Provided the followings:

o A monthly salary of Rs. 15,000 each to Jay and Vijay

o Karan was guaranteed a profit of Rs. 5,00,000 and Jay guaranteed that he will earn an annual fees of
Rs. 2,00,000. Any deficiency arising because of guarantee to Karan will be borne by Jay and Vijay in
the ratio of 3 : 2.

During the year ended 31st March 2018 Jay earned a fee of Rs. 1,75,000 and the profit of the firm amounted
to Rs. 15,00,000.
Showing your working clearly Prepare Profit and Loss Appropriation Account. [4]
10. Ajay, Manish and Sachin were partner sharing profit in the ratio of 5 : 3 : 2. Their capital were Rs. 6,00,000; Rs.
8,00,000 and Rs. 11,00,000 as on 1st April 2021. As per partnership deed interest on capital were to be provided
@ 10% p.a. For the year ended 31st March 2022. Profit of Rs. 2,00,000 was distributed without providing for
interest on capitals. Pass an adjustment enrtry and show your working clearly [3]

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