M.

M 80 Class 12th [ Commerce ]

Subject: Accountancy

(MCQs and Short Note)

Q1. 1. Which of the following statement is Correct?

(a) Goodwill is an intangible asset. (c) Goodwill is a Current asset

(b) Goodwill is a wasting asset. (d) Goodwill is an Intangible asset

Q2. What do you mean by partnership?

Q3. What is the accounting standard for Goodwill?

Q4. Capital Employed Rs. 5,00,000. It's average profits is 60,000. If Normal rate is 10%, Find Super profit?

(a) 50,000 (c) 10,000

(b) 6,000 (d) 56,000.

Q5. What is meant by partnership deed?

Q6. What is the rule for profit sharing between partners, if there is no deed?

Q7. If Super profits are Rs. 10,00,000, and Normal profit are Rs. 8,00,000 Find average profits.

(a) 2,00,000 (c) 18,00,000

(b) 20,00,000 (d) 8,00,000

Q8. Relationships between the partners is of:

(a) Close relatives. (c) Agent and Principal

(b) Junior-Senior Relationships (d) Senior-Subordinate Relationship.

Q9. If partner is allowed interest on capital, it is recorded on which side of Profit and loss Appropriation
Account?

(a) Debit (c) Both Sides

(b) Credit (d) None of the above.

Q10. The written agreement among the partners is called:

(a) Partnership Constitution (c) Partnership bye-laws

(b) Partnership Deed (d) A contract.

Q11. What is meant by Self Generated Goodwill?

Q12. Interest on loan, If there is no deed is provided @

(a) 8% (c) 7%

(b) 9% (d) 6%

Q13. What is the correct formula for goodwill under average profits.

(a) Super Profit × No. of years purchase

(b) Average profits ÷ No. Of years purchase

(c) Average profits × No. Of years purchase

(d) Super Profit ÷ No. of years purchase

Q14. What is the meant by Purchased Goodwill?

Q15. What is the rate for interest on drawing if, drawing are withdrew at the end of each quarter?

(a) 7.5 Months (c) 4.5 Months

(b) 6 Months (d) 5.5 Months

Q16. Unless otherwise stated, if time period of interest on drawing is not given assumed to be:

(a) 6 Months (c) 2.5 Months

(b) 3 Months (d) 4.5 Months

Q17. Under Fixed Capital Accounts Method, Which accounts are prepared?

(a) Only Current Account (c) Both Current & Capital Accounts

(b) Only Capital Accounts (d) Either (a) & (b)

Q18. Mr. A Provided Rs. 1,00,000 to the firm and firm give @ 10% interest on it. The value of interest is
Rs. 10,000. Interest being ____________ to the firm.

(a) Loss (c) Income

(b) Profit (d) Expense

Q19. What is the amount of commission payable to Mr. A, If Mr. A is to get a commission of 10% on net
profit after charging such commission. Net profit for the year ended 31st March,2022 was Rs. 55,000.

(a) 4,500 (c) 5, 000

(b) 5,500 (d) 6,000

Q20. If Fixed amount is withdrawn by the partner, in the beginning of each month during the year,
interest is charged @......

(a) 7.5 Months (c) 6.5 Months

(b) 5.5 Months (d) 4.5 Months.

(3 Marks)

Q1. What are the factors affecting Goodwill (Any three)

Q2. From the following information Compute Goodwill by capitalization Method?

Total Capital of the firm Rs. 16,00,000

Normal rate of return 10%

Profit for the year Rs. 2,00,000

Q3. Prepare Proforma of Profit and loss Appropriation Account with maximum items.

Q4. Calculate interest on drawings, If rate of drawings @ 10% p.a in each of the following cases:

Case 1. If he withdrew Rs. 7500 in the beginning of each quarter.

Case 2. If he withdrew Rs. 7500 in the end of each quarter.

Case 3.If he withdrew Rs. 7500 in the middle of each quarter.

Q5. Calculate Interest on drawings by Simple Method.

Q6. In the absence of Partnership Deed, what are the rules as per Indian Partnership Act, 1932?

(4 Marks)

Q1. Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2:1:2. Their
capitals were fixed at Rs. 3,00,000, Rs. 1,00,000, Rs.2,00,000. For the year ended 31st March, 2022,
interest on capital was credited to them @ 9% instead of 10% p.a. The profit for the year before
charging interest was Rs. 2,50,000.

Show your working notes and pass necessary adjustment entry.

Q2. X, Y and Z are partners in a firm sharing profits in the ratio of 2:2:1. Fixed capitals of the partners
were: X Rs. 5,00,000; Y Rs. 5,00,000 and Z Rs.2,50,000 respectively. The Partnership Deed provides that
interest on capital is to be allowed @ 10% p.a. Z is to be allowed a salary of 2,000 per month. Profit of
the firm for the year ended 31st March, 2022 after debiting Z's salary was Rs. 4,00,000. Prepare Profit &
Loss Appropriation Account.

Q3.
(6 Marks)

Q1. From the following information, calculate value of goodwill of M/s Sharma & Gupta:

(i) At three years' purchase of Average Profit.

(ii) At three years' purchase of Super Profit.

(iii) On the basis of Capitalisation of Super Profit.

(iv) On the basis of Capitalisation of Average Profit.

Information:

(a) Average Capital Employed - Rs.10,00,000.

(b) Net Profit/Loss of the firm for the past years: 2020- Rs.1,60,000 (Profit); 2021-Rs. 1,40,000 (Profit);
2022- Rs. 2,70,000 (Profit).

(c)Normal Rate of return is 11%.

(d) Remuneration to each partner for his service to be treated as a charge on profit- 2,500 per month.

(e) Assets (excluding goodwill)- 11,00,000; Liabilities- 1,00,000.

Q2. X and Y are partners sharing profits and losses in the ratio of 7: 3. Their Capital Accounts as at 1st
April, 2021 were X- Rs. 5,00,000; Y- Rs. 4,00,000. Partners are allowed interest on capital 5% p.a.
Drawings of the partners during the year ended 31st March, 2022 were Rs. 72,000 and Rs. 50,000
respectively. Profit for the year before allowing interest on capital and salary to Y Rs. 5,000 per month
was Rs. 8,00,000. 10% of the net profit is to be set aside to General Reserve.

Prepare Profit & Loss Appropriation Account for the year ended 31st March, 2022, and Capital and
Current Accounts of the partners.

Q3. What are the journal entries relating to the 'Profit and Loss Appropriation Account'

Q4. What is meant by Guaranteed of minimum profits? (2 Marks)

Bharat and Bhushan are partners in a retail business. Balances in their Capital and Current Accounts as
on 31st March, 2022 were:

Capital Account Current Account

Bharat Rs. 2,00,000 Rs. 50,000

Bhushan Rs. 2,40,000 Rs. 10000(Dr.) (4 Marks)

Q5. P and Q were partners in a firm sharing profits in the ratio of 5 : 3. On 1st April, 2021, they admitted
R as a new partner for 1/8th share in the profits with a guaranteed profit of Rs. 75,000. The new profit-
sharing ratio between P and Q will remain same but they agreed to bear any deficiency on account of
guarantee to R in the ratio 3: 2. The profit of the firm for the year ended 31st March, 2015 was Rs.
4,00,000.

Prepare Profit & Loss Appropriation Account of P, Q and R for the year ended 31st March, 2022
Q6. Part(a) A, B and C are partners sharing profits and losses in the ratio of 1:1:1. As per Partnership
Deed, C is entitled to a commission of 10% on the net profit after charging such commission. The net
profits before charging commission is Rs. 2,20,000

Determine the amount of commission payable to C. (3 Marks)

Part(b) What is the necessary journal entries for above. (3 Marks)