Professional Documents
Culture Documents
1. P and Q are partners sharing profits in the ratio of 1 : 2. R was manager who received the salary of ₹ 10,000 p.m. [1]
in addition to commission of 10% on net profits after charging such commission. Total remuneration to R
amounted to ₹ 1,80,000. Profit for the year before charging salary and commission was:
a) ₹ 6,00,000 b) ₹ 7,80,000
c) ₹ 7,20,000 d) ₹ 6,60,000
2. What should be the minimum number of persons to form a Partnership: [1]
a) 2 b) 10
c) 7 d) 20
3. Yogesh is a partner in a firm. He withdrew ₹ 2,000 per month on the last day of every month during the year [1]
ended 31st March, 2023. If interest on drawings is charged @ 9% p.a. the interest charged will be:
a) ₹ 2,160 b) ₹ 1,080
c) ₹ 990 d) ₹ 1,170
4. Govind and Pawan were partners in a firm sharing profit or losses in the ratio 7 : 5. With effect from 1st April [1]
2021 they agreed to share profits in the ratio of 5 : 4. Due to the change in profit sharing ratio what is pawan's
gain or sacrifice?
a) Sacrifice 1
12
b) Gain 1
12
c) Sacrifice 1
36
d) Gain 1
36
5. ________ is a kind of reserve created for payment of compensation in case of an accident. [1]
a) 8 : 7 b) 4 : 5
c) 1 : 1 d) 7 : 8
7. Proportionate Capital Method is otherwise called: [1]
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a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.
a) ₹6,000 b) ₹10,800
c) ₹7,200 d) ₹12,000
14. A and B are partners in business. Their capitals at the end of year were Rs. 48,000 & Rs. 36,000 respectively. [3]
During the year ended March 31st 2015 A’s Drawings and B’s drawings were Rs. 8, 000 & Rs. 12, 000
respectively. Profits before charging interest on capital during the year were Rs. 32, 000. Calculate Interest on
partners’ capitals @ 10% p.a.
15. A, B and C are partners having capitals of ₹ 10,00,000; ₹ 8,00,000 and ₹ 6,00,000 respectively in a firm and [4]
sharing profits and losses equally. C is guaranteed a minimum profit of ₹ 1,00,000 as share of profit every year.
The firm incurred a loss of ₹ 3,00,000 for the year ended 31st March, 2019. You are required to show the
necessary accounts for division of loss and giving effect to minimum guaranteed profit to C.
16. Reema and Seema are partners sharing profits and losses in the ratio of 4 : 1. They decide to share profits in the [4]
ratio of 3 : 2 w.e.f 1st April, 2018. However, the decision to change the profit-sharing ratio was taken after
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crediting share of profit for the year ended 31st March, 2019 to respective Capital Accounts, which was
₹1,00,000.
Goodwill of the firm as at 1st April, 2018 was valued at ₹75,000. Capital Accounts credit balances as at 31st
March, 2019 were Reema - ₹5,00,000 and Seema - ₹6,00,000.
Pass necessary Journal entries and prepare Capital Accounts.
17. S, B and J were partners in a firm. T was admitted as a partner in the partnership firm for 1
5
th share of profits. [1]
Calculate the sacrificing ratio of S, B and J.
18. Ramesh and Suresh are partners in a firm sharing profits in the ratio of 4 : 3. They admitted Mohan as a new [1]
partner. The profit sharing ratio of Ramesh, Suresh and Mohan will be 2 : 3 : 1. Calculate the gain or sacrifice of
old partner.
19. A and B are partners in a firm sharing profits and losses as 5 : 3. The position of the firm as at 31st March, 2022 [6]
was as follows:
Liabilities ₹ Assets ₹
1,07,500 1,07,500
4
th of the future profits, the balance of profits
being shared by A and B as 5 : 3. He introduces ₹ 40,000 by way of capital and further ₹ 4,000 by way of
premium for goodwill. He also provides loan to the firm to pay off bank overdraft. A and B agree to depreciate
Plant by 10% and to raise a reserve against Sundry Debtors @ 5%.
You are asked to Journalise the entries in the books of the firm and show the resultant Balance Sheet. How will
the partners share future profits.
20. P, Q, R and S were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2 : 1. On 31st March, 2023, [1]
P retired from the firm. P's share was taken over by Q, R and S in the ratio of 1 : 2 : 3. Calculate the new profit
sharing ratio of Q, R and S.
21. P, Q and R were partners in a firm sharing profits and losses in the ratio of 9 : 8 : 7. The firm closes its books on [4]
31st March every year. Q died on 30th November, 2021. The partnership deed provided that a deceased partner's
share in the profits of the firm in the year of his death will be calculated on the basis of the last year's profit.
During the year ended 31st March, 2021 the firm's profit was ₹ 9,00,000.
Calculate Q's share of profit till the date of his death and pass necessary journal entry on the same date in the
books of the firm.
22. A, B and C are partners in a business, sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at [6]
Liabilities ₹ Assets ₹
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General Reserve 60,000 Cash at Bank 10,000
3,76,000 3,76,000
C retires from business on 1st April, 2023. It was agreed that the amount due to him will be paid on 30th June,
2023. It was also agreed to adjust the value of assets as follows:
i. Provide for doubtful debts @ 5% on Sundry Debtors.
ii. Reduce Stock by 5% and Machinery by 10%.
iii. Building to be revalued at ₹ 1,51,000.
iv. Goodwill of the firm is valued at ₹ 1,50,000.
v. A and B will continue to carry on the business and shall share profits and losses equally in the future.
vi. A furniture purchased on 1st January, 2023 for ₹ 4,000 debited to Expense Account is to be brought into
books, charging depreciation @ 10% p.a.
prepare Revaluation Account (Profit and Loss Adjustment Account), Partners' Capital Accounts, C's Loan
Account and Balance Sheet of the firm as at 1st April, 2023
23. X, Y, and Z were partners sharing profits in the ratio 3: 2: 1. On 31st March 2008, their Balance Sheet stood as [6]
under :
Machinery 36,000
2,91,000 2,91,000
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Prepare Z’s Capital Accounts to be rendered to the executor and also a journal entry for the settlement of the
amount due to Z’s executor.
24. On dissolution of a firm, its Balance Sheet revealed total creditors ₹ 50,000; Total Capital ₹ 48,000; Cash [1]
Balance ₹ 3,000, Its assets were realised at 12% less. What will be loss on realisation?
25. Give the necessary journal entries for the following transactions on the dissolution of the firm of Amit and Rahul [4]
on 31st March, 2023, after the transfer of various assets (other than cash) and the third party liabilities to
Realisation Account. They shared profits and losses in the ratio of 2 : 1.
i. There was a bill of exchange of ₹ 10,000 under discount. The bill was received from Dinesh who became
insolvent.
ii. Bills Payable of ₹ 30,000 falling due on 30th April, 2023 was discharged at ₹ 29,550.
iii. Creditors of ₹ 30,000 took an over stock of ₹ 10,000 at 10% discount and the balance was paid to them in
cash.
iv. There was an old typewriter that had been written off completely. It was estimated to realize ₹ 600. It was
taken away by Rahul at 25% less than the estimated price.
v. Amit agreed to take over the responsibility of completing dissolution at an agreed remuneration of ₹ 1,000
and to bear all realization expenses. Actual realisation expenses ₹ 800 were paid by the firm.
vi. Loss on realization was ₹ 54,000.
26. Krishna and Arjun are partners in a firm. They share profits in the ratio of 4 : 1. They decide to dissolve the firm [6]
on 31st March, 2019 at which date their Balance Sheet stood as:
Liabilities ₹ Assets ₹
Arjun 6,000 22,000 Less: Provision for Doubtful Debts (400) 8,600
32,000 32,000
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