PM SHRI KENDRIYA VIDYALAYA NO.

2 ARMY BHUJ
CLASS XII-B – ACCOUNTANCY
(SUMMER HOLIDAY HOMEWORK - 2024)

ACCOUNTING FOR PARTNERSHIP (PAST ADJUSTMENTS)

1 Suresh and Ramesh were partners in a firm sharing profits in the ratio of 3:2. 4
Their fixed capitals were Suresh Rs. 9, 00,000 and Ramesh Rs. 6, 00,000. The
partnership deed provided for the following:
(a) Interest on capital @ 5% per annum.
(b) Rs. 60,000 per annum salary to Suresh and salary Rs. 2,000 per
month to Ramesh.
The profit earned by the firm for the year ended 31.3.2007 was Rs. 2, 34,000.
The profit was divided equally without providing for the above.
Pass an adjustment entry.
2 X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. After 3
the final accounts have been prepared, it was discovered that interest on
drawings @ 5% p.a. had not been taken into consideration. The drawings of
the Partners were: X Rs. 15,000; Y Rs.12,600; Z Rs. 12,000. Give the
necessary adjusting journal entry.
3 Kumar and Raja were partners in a firm sharing profits in the ratio of 7:3. 4
Their fixed capitals were – Kumar Rs. 9, 00,000 and Raja Rs. 4, 00,000. The
partnership deed provided for the following but the profit for the year was
distributed without providing for:
(i) Interest on capital @ 9% per annum.
(ii) Kumar’s salary Rs. 50,000 per year and Raja’s salary Rs. 3,000 per
month.
The profit for the year ended 31-3-2007 was Rs. 2, 78,000.
Pass the adjustment entry.
4 A, B and c are partners in a firm. On 1.4.2019 their capitals stood at Rs. 4
50,000; Rs. 25,000; and Rs. 25,000 respectively. As per the provisions of the

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 partnership deed-
(i) C was entitled for a salary of Rs. 5,000 p.a.
(ii) Partners were entitled to Interest on capital @ 5% p.a.
(iii) Profits were to be shared in the ratio of partners’ capitals
The net profit for the year 2019-20 of Rs. 33,000 was distributed equally
without providing for the above adjustments.
Pass an adjustment entry in journal to rectify the above error.
5 Ishu, Vishu and Nishu are partners in a firm sharing profits and losses in the 4
ratio of 2:3:5. Their fixed capitals were Rs. 1,50,000, Rs. 3,00,000 and Rs.
6,00,000 respectively. After the final accounts have been prepared it was
discovered that interest on capital was credited to them @ 12% instead of
10%. Pass the necessary adjustment entry.
6 A, B and C are partners in firm. They had omitted interest on capital @ 10% 4
p.a. for three years ended 31st March 2012. Their fixed capitals on which
interest was to be calculated throughout were: A - Rs. 1,00,000; B - Rs.
80,000; C - Rs. 70,000
Give the necessary adjusting journal entry with working notes.

ACCOUNTING FOR PARTNERSHIP (P/L APP. A/C)

7 A, B and C are partners with capitals of Rs. 1,00,000, Rs. 80,000 and Rs. 4
60,000 respectively. They share profits in the ratio 2:2:1, after allowing
interest on capital @ 10% p.a. However, A and B guaranteed that C’s share in
profit shall not be less than Rs. 9,000 in any year. The net profit for the year
ended March 31, 2017 is Rs. 60,000 before charging interest on capital.
Prepare Profit & Loss Appropriation Account.
8 Ram and Shyam were partners in a firm sharing profits and losses in the ratio 6
of 5:3. Their capitals as on 1.1.2011 were: Ram Rs. 80,000 and Shyam Rs.
1,00,000. They agreed to allow interest on capital @ 12% p.a. and charge
interest on drawings @ 15% p.a. The firm earned a profit, before all the
above adjustments of Rs. 14,040 for the year ended 31.12.2011. The

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 drawings of Ram and Shyam during the year were Rs. 6,000 and Rs. 10,000
respectively. Showing your calculations clearly, prepare Profit and Loss
Appropriation Account and Capital Account of Ram and Shyam. The interest
on capital will be allowed even if the firm incurs a loss.
9 Akash, Mahesh and Vipul were partners in a firm. Their capitals on 01.04.2021 6
were: Rs. 4,00,000; Rs. 5,00,000 and Rs. 6,00,000. The partnership deed
provided for the following:
a) They will share profits in the ratio of 2:3:3.
b) Akash will be allowed a salary of Rs. 2,000 p.m.
c) Interest on capital will be allowed @ 12% p.a.
During the year Akash withdrew Rs. 14,000, Mahesh Rs. 15,000 and Vipul Rs.
18,000. For the year ended 31.03.2022, the firm earned a profit of Rs.
3,00,000.
Prepare Profit and Loss Appropriation Account and Partners’ Capital
Accounts.
10 Aman and Dhiman are partners sharing profits and losses in the ratio of 2:1. 6
On 1st April, 2021 their capitals were Aman - Rs. 50,000 and Dhiman - Rs.
40,000.
Prepare the Profit and Loss Appropriation Account and the Partners’
Capital Account at the end of the year after considering the following
items:
a) Interest on Capital is to be allowed @ 5% p.a.
b) Interest on partners’ drawings @ 6% p.a. Drawings: Aman – Rs.
10000 and Dhiman – Rs. 8000.
c) Aman is entitled to get a salary @ Rs. 500 per month.
d) 10% of the divisible profit is to be transferred to Reserve.
They earned profit of Rs. 70,500 for the year ended 31st March, 2022.

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 ACCOUNTING FOR PARTNERSHIP (SHORT QUES.)
11 Alka, Barkha and Charu are partners in a firm having no partnership 1
agreement. Alka, Barkha and Charu contributed Rs. 2,00,000, Rs. 3,00,000
and Rs.1,00,000 respectively. Alka and Barkha desire that the profits should
be divided in the ratio of capital contribution. Charu does not agree to this. Is
Charu correct? Give reason in support of your answer.
12 A and B decided that no interest on drawings is to be allowed to any partner. 1
But after one year C wants that interest on drawings is to be provided to
every partner. State how C can do this.
13 A and B are partners in a firm without a partnership deed. A is an active 1
partner and claims a salary of Rs. 18,000 per month. State with reasons
whether the claim is valid or not.
14 If the Partnership Deed does not specify the rate of interest payable on 1
capital, is the interest still payable? If yes, at what rate?

ADMISSION OF A PARTNER (GOODWILL)

15 Ajit and Baljit were partners sharing profits and losses in the ratio of 3:2. 3
They decided to admit Chaman into the partnership for 1/6th share of the
future profits. Goodwill, valued at 4 times the average super profits of the
firm, was Rs. 18,000. The firm had assets worth Rs. 15,00,000 and liabilities
Rs. 12,00,000. The normal earning capacity of such firms is expected to be
10% p.a. find the average profits/actual profits earned by the firm during the
last 4 years.
16 The average net profits Expected of the firm in future are Rs. 68,000 per year 4
and capital invested in the business by the firm is Rs. 3,50,000. The rate of
interest expected from capital invested in this class of business is 12%. The
remuneration of the partners is estimated to be Rs. 8,000 for the year. You
are required to find out the value of goodwill on the basis of 2 years purchase
of super profits.

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 PM SHRI KENDRIYA VIDYALAYA NO. 2 ARMY BHUJ
CLASS XII-B – BUSINESS STUDIES
(SUMMER HOLIDAY HOMEWORK - 2024)

1. Prepare notes on chapter – 3 – Business Environment

2. Prepare notes on chapter – 2 – Principles of Management

Read and prepare yourself for upcoming examination in June / July in Business
studies (Chapter – 2 & 3)

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