Fundamental ND Chang Class 12

Parivartan Classes
169 Janakpuri Rajendra nagar Bareilly
FUNDAMENTAL ND CHANGE IN PROFIT

Class 12 - Accountancy
Time Allowed: 1 minute Maximum Marks: 50
General Instructions:
Read all of question carefully and give their answer
1. Why is it considered desirable to make the partnership agreement in writing. [1]
2. List the items which may be debited or credited in capital accounts of the partners when: [4]
i. Capitals are fixed.
ii. Capitals are fluctuating.
3. Why is Profit and Loss Appropriation Account prepared? [4]
4. List any two circumstances under which the fixed capital of partners may change. [1]
5. If a fixed amount is withdrawn on the first day of every quarter, for what period the interest [1]
on total amount withdrawn will be calculated?
6. In the absence of Partnership Deed, what are the rules relating to;- [4]
a. Salaries of partners,
b. Interest on partners' capitals,
c. Interest on partner's loan,
d. Division of profit, and
e. Interest on partners' drawings
7. Discuss the main provisions of the Indian Partnership Act 1932 that are relevant to [6]
partnership accounts if there is no partnership deed.
8. How will you deal with a change in profit sharing ratio among existing partners? Take [4]
imaginary figures to illustrate your answer?
9. Lokesh and Azad are partners sharing profits in the ratio 3:2, with capitals of ₹ 50,000 and [4]
30,000, respectively. Interest on capital is agreed to be paid @ 6% p.a. Azad is allowed a
salary of ₹ 2,500 p.a. During 2016, the profits prior to the calculation of interest on capital
but after charging Azad’s salary amounted to ₹ 12,500. A provision of 5% of profits is to be
made in respect of manager’s commission. Prepare partner’s capital accounts and profit
and loss Appropriation Account.
10. Aakriti and Bindu entered into partnership for making garment on April 01, 2019 without [4]
any Partnership agreement. They introduced Capitals of ₹ 5,00,000 and ₹ 3,00,000
respectively on October 01, 2019. Aakriti Advanced. ₹ 20,000 by way of loan to the firm
without any agreement as to interest. Profit and Loss account for the year ended March 31
2020 showed profit of ₹ 43,000. Partners could not agree upon the question of interest and
the basis of division of profit. You are required to divide the profits between them by
preparing Profit and Loss Appropriation Account. Also give reasons in Support of your
answer.
11. Ramesh and Suresh were partners in a firm sharing profits in the ratio of their capitals [4]
contributed on commencement of business which were ₹ 80,000 and ₹ 60,000
respectively. The firm started business on April 1, 2016. According to the partnership
agreement, interest on capital and drawings are 12% p.a. and 10% p.a., respectively.
Ramesh and Suresh are to get a monthly salary of ₹ 2,000 and ₹ 3,000, respectively.
The profits for year ended March 31, 2017 before making above appropriations was ₹
1,00,300. The drawings of Ramesh and Suresh were ₹ 40,000 and ₹ 50,000, respectively.
Interest on drawings amounted to ₹ 2,000 for Ramesh and ₹ 2,500 for Suresh. Prepare
Profit and Loss Appropriation Account and partners’ capital accounts, assuming that their
capitals are fluctuating.
12. Himanshu withdraws ₹ 2,500 at the end of each month. The Partnership deed provides for [1]
charging the interest on drawings @ 12% p.a. Calculate interest on Himanshu’s drawings
for the year ending March 31, 2017.
13. Rohit and Ravi are equal partners. Their capitals are ₹ 40,000 and ₹ 80,000 respectively. [4]
After the accounts for the year had been prepared, it was noticed that interest at 5% p.a. as
provided in the partnership deed, was not credited to their capital accounts before
distribution of profits. It is decided to pass an adjustment entry in the beginning of the next
year. Record the necessary journal entry.
14. Anju, Manju and Mamta are partners whose fixed capitals were ₹ 10,000, ₹ 8,000 and ₹ [4]
6,000, respectively. As per the partnership agreement, there is a provision for allowing
interest on capitals @ 5% p.a. but entries for the same have not been made for the last
three years. The profit-sharing ratio during there years remained as follows:
Year Anju Manju Mamta

2016 4 3 5
2017 3 2 1
2018 1 1 1
Make necessary and adjustment entry at the beginning of the fourth year i.e. April 2019.
15. Ram, Ravi and Rohit are partners, the balances in their capital accounts being ₹ 30,000, ₹ [4]
25,000 and ₹ 20,000 respectively. In arriving at these figures, the profits for the year ended
March 31st, 2023 amounting to Rupees 24,000 had been credited to partners in the
proportion in which they shared profits. During the year the drawings of Ram, Ravi and
Rohit were ₹ 5,000, ₹ 4,000 and ₹ 3,000, respectively. Subsequently, the following
omissions were noticed:
i. Interest on Capital, at the rate of 10% p.a., was not charged.
ii. Interest on Drawings: Ram ₹ 250, Ravi ₹ 200, Rohit ₹ 150.
Record necessary corrections through journal entries.

Fundamental ND Chang Class 12

Uploaded by

Copyright:

Available Formats

Fundamental ND Chang Class 12

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Fundamental ND Chang Class 12

Uploaded by

Copyright:

Available Formats

Parivartan Classes

169 Janakpuri Rajendra nagar Bareilly

FUNDAMENTAL ND CHANGE IN PROFIT

3. Why is Profit and Loss Appropriation Account prepared? [4]

Year Anju Manju Mamta

You might also like