Sample Paper – 2012 Class – XII Subject – Accountancy

Chapter: Accounting for Partnership Firms – Fundamentals
1. Amit and Vijay started a partnership business on 1st April, 2010. Their capital contributions were 2,00,000 and 1,50,000 respectively. The partnership deed provided inter alia that:
(a) Interest on capital @ 10% p.a.

(b) Amit to get a salary of 2,000 per month and Vijay 3,000 per month.
(c) Profits are to be shared in the ratio of 3:2. The profits for the year ended 31st March, 2011 before making above appropriations were Interest on drawings amounted to 2,200 for Amit and 2,500 for Vijay. 1,25,700] 50,000; 50,000 and 1,00,000 Prepare Profit and Loss Appropriation A/c. [Ans. Divisible profit 2,16,000.

2. A, B and C were partners in a firm having capitals of

respectively. Their current account balances were A: 10,000 B: 5,000 and C: 2,000 (Dr.). According to the partnership deed the partners were entitled to an interest on capital @ 10% p.a. C being the working partner was also entitled to a salary of 12,000 p.a. The profits were to be shared as:

(a) The first 20,000 in the proportion to their capitals. (b) Next 30,000 in the ratio of 5:3:2.
(c) Remaining profits to be shared equally. The firm made a profit of 1,72,000 before charging any of the above items. Prepare the profits and loss appropriation account and pass the necessary Journal entry for the appropriation of profits. [ Ans.; Share in divisible profit A: 50,000 B: 44,000 and C: 46,000] 60,000

3. X and Y are partners sharing profits in proportion of 3:2 with capitals of

80,000 and

respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an annual salary of 6,000 which has not been withdrawn. During 2009-2010 the profits for the year prior to calculation of interest on capital but after charging Y’s Salary amounted to 24,000. A provision of 5% of the profit is to be made in respect of commission to the manager. Prepare an account showing the allocation of profits. Note: Manager Commission is a charge against the profit. Hence, it must be provided before making any appropriation (such as salary, interest on capital). [Ans. Share in D.P.; X: 9,300 and Y 4. A and B formed a partnership on 1 April, 2009. They agreed that out of profits:


(a) A should receive a salary of 500 per month.
(b) Interest on capital should be allowed @ 6% p.a. and (c) Remaining profits be divided equally. A contributed a capital or

50,000 on 1st April, 2009 but B brought in his capital of 15,000 and B

1,00,000 on 1st

July 2009. During the year, the drawings were A

20,000. Profits for the year ended 50,000. Prepare the profit and loss

31 March, 2010 before the above noted salary and interest were

appropriation account and the capital accounts of the partners. [Ans.: Capital A/c; A 62,250; B Other Educational Portals | | | | |

000.000. Make the necessary corrections through a journal entry and show your workings | www. 2010.00.750] 9. Pass the adjustment | www. B’s Other Educational Portals www. the balance of their capital accounts being 30.500 per month.000.magicsense. Their drawings were 5. 1.000 and 10.000 respectively. 90.: A’s cap.000 on 30th June.: Debit Ram and Credit Sohan by 300] 1.: Dr.000 respectively during the year.250 and C’s cap.niosguess.icseguess. the profits for the year ended 31 | www. (b) Partners were entitled to interest on capital @ 5% p. their capitals stood at 50. [Ans. Pass an adjustment entry to rectify the above error. Mohan and Sohan sharing profits and losses equally have capitals journal entry.000 and 2. (b) Interest on drawings @ 18% p. the following omissions were noticed and it was decided to bring them into account: (a) Interest on capital @ 10% p. B and C were partners in a firm.: Dr. Show your working notes clearly and pass the necessary adjustment entry. 5. Shiv and Shanker were partners in a firm sharing profits in 3:2 ratio. Vijay and Anil are partners. The profits for the year before charging interest was 2. As per the provisions of the partnership deed: (a) C was entitled for a salary of 1.20. Cr. Vijay 200 and Anil 150. 200.000 respectively. Give the adjusting 7.cbseguess.000 and 25.a. 2009. the following two items have been ignored: (a) Outstanding expenses of 7.000.a. 24. 9.000 and 20. In arriving at these figures.00.636] 1.a. Shiv withdrew 12. Pass an adjusting journal entry. 2010 was 97.a. it was discovered that in arriving at the profit for 2009-10.000 had already been credited to partners in the proportion in which they shared profits.000.a. interest was credited to them @ 6% instead of 5%.000 respectively. Their respective capital contributions are 3. Mohan. interest on capital was credited to them @ 9% instead of 10% p. .00.000.dulife.50. | www.500.000 and 60. www. Ram.000 and 3.000 and 2.000 was divided equally without providing for the above terms. Shyam’s Current A/c by 400 and Cr. The profit for the year ended 31st March. st 25. A. 2009 and Shanker withdrew 18. (c) Profits were to be shared in the ratio of capitals. which was distributed among the partners without providing for the above adjustments. For the year 2009. Shiv’s Current A/c and Cr. Mohan A/c st [Ans.000.50. [Ans.00. [Ans.000 respectively. The net profit for the year 2009 of 45. Sohan’s current A/c 600] 8.000 on 30th September 2009.000. On 1 January.70. The partnership deed provides the following – (a) Interest on capital @ 12% p.http://www. Immediately after the allocation of 75.000 as profit for the year ended 31st March.000. Subsequently. Dr.ignouguess. Anil by 550 and credit Mohan by 550] 6. For the year 2009. Ram. 8. X and Y are partners in a firm.000 and (b) Accrued interest on investment of | www. 2010. Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2:1:2. Dr. (b) Interest on drawings: Mohan 250. Their fixed capitals were 1.000 and their profit sharing ratio is 3:2. Their capitals were fixed at 3. Shanker’s Current A/c by 6.iitguess. [Ans.: Dr.

000. B and C were in partnership sharing profits and losses in the ratio of 4:2:1 respectively. B 8. 40. if any.ignouguess.502] 16. to be borne personally by A.icseguess. 1.710 after charging C’s salary.000 respectively.600. B’s share 3. A. You are required to show the profit and loss appropriation account after giving effect to the 18. NIL] 13.200 To Outstanding Expenses A/c 7. C’s Share 15.000 To A’s Capital A/c 20.000. The profits for the year ended 31 st March. 2009 and 31st March.000 14. [Ans.: Share in D.000 in the ratio www.000 X’s Capital A/c Dr. whichever is | www. Pass the necessary entries in the books of the firm.000. 2.: A’s Share 41.cbseguess. The partners of a firm distributed the profits for the year ended 31 March. [Ans. B and C are partners in a firm. A. Deficiency. 500 To C’s Capital A/c 1.000. 2010. which on an average works out at The profits for the first year of the partnership are above. It was provided that in no case C’s share in profits should be less than amount to | www. Prepare the Profit and Loss Appropriation Account 6. 2010 amounted to 10. plus a commission of 5% on the profits after charging such salary and commission or 1/5 the of the profits of the firm.000 To C’s Capital A/c Other Educational Portals www. You are required to show the appropriation among the partners.niosguess. (b) B given a guarantee to the effect that gross fee earned by him for the firm shall be equal to his average gross fee of the preceeding five years.400. (i) Profit and Loss A/c | www. 2010 were 60. B’s Share 25. However.000 and 10. The profits for the year 2009 31. Any excess of the latter over the former is. Their profit sharing ratio is 2:2:1.http://www.000 Hint:(ii) Profit and Loss Appropriation A/c Dr. 90.000. The gross fee earned by B for the firm is 15. [Deficiency to be borne by B – 2009. | www. under the partnership | www.a.500. 4. 2011.000 To B’s Capital A/c 16.500] 12. 1.000. Prepare the profit and loss appropriation account for the two years. C is guaranteed a minimum amount of 40.magicsense.800 Y’s Capital A/c Dr.iitguess. A.825.dulife.183. 500 B’s Capital A/c Dr. A and B sharing profits in the ratio of 5:3 and C receiving a salary of 150 per month.cbseguess.000] 16.000. C is given a guarantee that his minimum share of profits in any given year would be 5. would be borne by A and B equally.P.000 11. The profits for the year 2008-09 amounted to 40. B and C are partners sharing profits in the ratio of 5:4:1.500. B and C are in partnership sharing profits and losses in the ratio of 3:2:1 subject to the following – (a) C’s share of profits guaranteed to be not less than 15.000 as share of profits every year. A.: A 16.000 (iii)A’s Capital A/c Dr. 40.000 To Profit and Loss Appropriation A/c 40.000 p. C’s st showing the division of the profits of the firm.000 and C 7. Any deficiency arising on that amount shall be met by Hint: Accrued Interest A/c . [Ans.: A’s Share of 3:2:1 without providing for the following adjustments – 2. B and C are partners in a firm. 75. The profits for the two years ended 31st March.

(d) Profits were to be shared in the ratio of 3:3:2.000 p. (b) B was entitled to a commission of 4.500 To B’s Capital A/c 4. Ans.niosguess. Pass the necessary journal entry for the above adjustments in the books of the | | www. Accountancy (Vidya Mandir Public | www.ignouguess.dulife.a.cbseguess.: A’s Capital A/c .http://www. to A. (c) B and C guaranteed a minimum profit of | www.G.500 each p.T. Sector – 15A.500 To C’s Capital A/c 4.500. | (a) A and B were entitled to a salary of Other Educational Portals www.000 -----------xx---------------------xx----------------------------xx-------------------------xx---------------------xx------------- Gulshan Hans P.iitguess. Faridabad) # 9910811665 Email: gulshanhans2076@gmail.