@REVISION MASALA BY RAJAT ARORA

REVISION MASALA HOMEWORK #1

Fundamentals Questions (Revision Material)
Q 1. D, E and F were partners in a firm sharing profits in the ratio of 5:7:8. Their fixed capitals on 1st
April, 2023 were D Rs. 5,00,000; E Rs.7,00,000 and F Rs.8,00,000. Their Partnership Deed provided
for the following:

i. Interest on capital @ 10% p.a.

ii. Salary of Rs.10,000 per month of F.
iii. Interest on drawing @ 12% p.a.

D withdrew Rs. 40,000 on 30th April, 2023; E withdrew Rs.50,000 on 30th June, 2009 and F withdrew
Rs. 30,000 on 31st Marc.

During the year ended 31st March, 2024 the firm earned a profit of Rs. 3,50,000.

Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2024.

Q 2. Simmi and Sonu are partners in a firm, sharing profits and losses in the ratio of 3:1. The profit
and loss account of the firm for the year ending March 31,2024 shows a net profit of Rs. 1,50,000.
Prepare the Profit and Loss Appropriation Account by taking into consideration the following
information:sss

(i) Partners capital on April 1, 2023; Simmi, Rs 30,000; Sonu, Rs 60,000;

(ii) Current accounts balances on April 1, 2023; Simmi, Rs 30,000 (Cr); Sonu, Rs 15,000 (Cr);

(iii) Partners drawings during the year amounted to Simmi, Rs 20,000; Sonu, Rs 15,000;

(iv) Interest on capital was allowed at 5% pa.

(v) Interest on drawing was to be charged at 6% pa at an average of six months;

(vi) Partners' Salaries; Simmi Rs 12,000 and Sonu Rs 9,000. Also show the partners' current accounts.

Q 3. Pappu and Munna are partners in a firm sharing profits in the ratio of 3 : 2. The partnership
deed provided that Pappu was to be paid salary of ₹ 2,500 per month and Munna was to get a
commission of Rs. 10,000 per year. Interest on capital was to be allowed @ 5% per annum and
interest on drawings was to be charged @ 6% per annum. Interest on Pappu's drawings was Rs.
1,250 and on Munna's drawings Rs. 425. Capital of the partners were Rs. 2,00,000 and Rs. 1,50,000
respectively, and were fixed. The firm earned a profit of ₹ 90,575 for the year ended 31-3-2016.
Prepare Profit and Loss Appropriation Account of the firm.

Q 4. A, B and C were partners in a firm having capitals of Rs. 1,00,000; Rs. 1,00,000 and Rs. 2,00,000
respectively. According to the partnership deed the partners were entitled to interest on capital @
6% p.a. A being the working partner was also entitled to a salary of Rs. 5000 per month. The profits
were to be divided as follows:

The first Rs. 40,000 in the ratio 2:3:5.

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Next Rs. 80,000 in the proportion of their capitals.

Remaining profits to be shared equally.

The firm made a profit of Rs. 2,70,000 for the year ended 31st March, 2024 before charging any of
the above items. Prepare Profit and Loss Appropriation Account and pass necessary journal entry for
apportionment of profits.

Q 5. X, Y and Z are in the partnership and on 1st April, 2023, their respective capitals were Rs.
2,00,000; Rs. 1,20,000 and Rs. 1,00,000. Y is entitled to a salary of Rs. 25,000 and Z. Rs. 20,000 per
annum, payable before division of profits. Interest is allowed on capital at 5% per annum but is not
charged on drawings. Of the net divisible profits on the first Rs. 1,00,000; X is entitled to 40 per cent;
Y to 35 per cent and Z to 25 per cent, over that amount profits are shared equally. The profit for the
year ended 31st March, 2024, after debiting partnership salaries, but before charging interest on
capitals, was Rs. 1,81,000 and the partners had drawn Rs. 8,000 each. Prepare partner's capital
account for the year.

Q 6. Tulsi and Kabir are partners sharing profits in proportion of 3:2 with capitals of Rs. 8,00,000 and
Rs. 6,00,000 respectively. Interest on capitals is agreed at 6% p.a. Tulsi is to be allowed a salary of Rs
6,000 per month. For the year ended 31st March 2024, the profit prior to calculation of Interest on
capital but after charging Tulsi's salary amounted to Rs. 2,28,000. Manager is to be allowed a
commission of 10% of the profits Prepare an account showing the allocation of profits.

Q 7. A and B are partners in a firm. A is to get a commission of 10% of the net profit before charging
any commission. B is to get a commission of 10% of net profit after charging all commissions. Net
profit before charging any commission was Rs. 55,000. find out commissions of A and B.

Q 8. Calculate the interest on Drawings of Tarun @ 8% pa. for the year ended 31st March, 2024 in
each of the following alternative cases:
Case (a) if his drawings during the year were Rs. 60,000;
Case (b) if he withdrew Rs. 5,000 p.m. in the beginning of every month;
Case (c) if he withdrew Rs. 5,000 p.m. at the end of every month;
Case (d) if he withdrew Rs. 5,000 p.m. during the year,
Case (e) if he withdrew the following amounts as under:
2023 June 1: Rs. 10.000; Aug. 31: Rs. 12,000; Nov. 1: Rs. 16,000; Dec.31: Rs.13,000: Feb 1, 2024: Rs.
9,000

Q 9. Calculate the interest on Drawings of Anuradha @ 9% p.a. for the year ended 31st March 2024,
if she withdrew 10,000 in the beginning of each quarter.

Q 10. Calculate the interest on Drawings of Bipasa @ 9% p.a. for the year ended 31st March 2024, if
she withdrew Rs. 10,000 at the end of each quarter.

Q 11. Calculate the interest on Drawings of Charulata @ 9% p.a. for the year ended 31st March 2024,
if she withdrew Rs. 10,000 each quarter.

Q 12. Calculate the interest on Drawings of Divya @9% pm if she withdrew Rs. 4000 p.m. on the first
day of every month for 6 months ending 31st March 2024.

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Q 13. Calculate the interest on Drawing of Esha @9% p.a. if she withdrew Rs. 4,000 p.m. on the last
day of every month for six month ending 31st March 2024.

Q 14. Calculate the interest on Drawings of Garima @ 9% p.a., if she withdrew Rs. 4,000 p.m. for six
months ending 31st March, 2021

Q 15. Seema and Tina are partners in a firm. Interest on drawings is charged @ 10% p.a. You are
required to calculate the amount of drawings of each partner in the following cases:

1) Seema withdrew a fixed amount in the beginning of each month and interest on drawings is
Rs. 3,900.
2) Tina withdrew a fixed amount in the beginning of each quarter and interest on drawings is
Rs. 6,000.

Q 16. Era, a partner withdrew Rs. 40,000 per month for her personal use from the firm in the
beginning of each month. Interest on her drawings was calculated at 31,200 at the end of the year.
Calculate the rate of interest on her drawings.

Q 17. Calculate the rate of interest on drawing in the following case

Charu and Suruchi are partner in a firm. Suruchi withdrew Rs. 12000 in the beginning of each quarter
and interest on drawing was Calculated at Rs. 2700 at the end of the year.
2. Yamini and Sonia are partner in a firm. Sonia withdrew Rs. 12000 at the end of each quarter and
interest on drawing was Calculated at Rs. 1,440 at the end of the year.

Q 18. X, Y and Z contribute ₹3,00,000, Rs. 2,00,000 and Rs. 1,00,000 respectively by way of capital on
which they agree interest at 12% per annum. They share profit and loss in the ratio 5:3:2 profit for
the year ended 31st March 2024 is Rs. 60,000 before allowing interest on capital. Prepare a Profit
and Loss Appropriation Account if

i. Partnership deed is silent as to treatment of interest as a charge or appropriation and

ii. Partnership deed provide for interest even if it involve the firm in loss.

Q 19. A, B and C are partners in a firm, According to the partnership Deed the partners are entitled to
draw up to Rs. 7.000 per month. On the 1st day of every month A, B and C drew Rs. 7,000; Rs. 6.000
and Rs. 5000 respectively. Interest on capitals is to be allowed @ 8% p.a. and Interest on drawing is
to be charged @ 10% p.a. respectively. Profit for the year ended 31st March 2023 was Rs. 7,55,000
out of which and Rs. 2,00,000 are to be transferred to General Reserve. B and C are to get salary of
Rs. 30,000 and 45,000 P.a. respectively and A is to receive commission @10% on distributable profits
after charging such commission. On 1st April 2022 balances of their capital accounts were Rs.
5,00,000; Rs. 4,00,000 and Rs. 3,50,000 respectively.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2023 and capital
accounts of partners in the books of the firm.

Q 20. Sonu and Rajat started a partnership firm on April 1, 2017. They contributed Rs. 8,00,000 and
Rs. 6,00,000 respectively as their capitals and decided to share profits and losses in the ratio of 3: 2.
Ketto The partnership deed provided that Sonu was to be paid a salary of Rs. 20,000 per month and
Rajat a commission of 5% on turnover. It also provided that interest on capital be allowed at 8% p.a.
Sonu withdrew Rs. 20,000 on 1st December 2017 and Rajat withdrew ₹ 5,000 at the end of each
month. Interest on drawings was charged at 6% p.a. The net profit as per Profit and Loss Account for

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the year ended 31st March 2018 was Rs. 4,89,950. The turnover of the firm for the year ended 31st
March 2018 amounted to Rs. 20,00,000.

Pass necessary journal entries for the above transactions in the books of Sonu and Rajat.

Q 21. X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1 with a minimum profit of
Rs. 1,00,000 for Z. The profits for the year ended March 31, 2023 amounted to Rs. 4,80,000. Pass
necessary journal entries in the books of the firm.

Q 22. A, B and C are partners in a firm sharing profits in the ratio of 2:2:1. According to the terms of
the partnership agreement C has to get a minimum of Rs. 6,000 irrespective of the profits of the firm.
Any excess payable to C on account of such guarantee shall be borne by A. Profits earned during the
year ended 31st March, 2023 sere ₹25,000. Pass journal entries in the books of the firm.

Q 23. A, B and Care partners sharing profits in the ratio of 5:4:1. C is given a guarantee that his share
of profits in any year will not be less than Rs. 20,000. The profit for the year ending 31st March 2023
amounts to ₹1,40,000. Amount of shortfall in the profits given to C will be borne by A and B in the
ratio of 3: 2. Pass necessary journal entry regarding deficiency borne by A and B.

Q 24. Maanika, Bhavi and Komal are partners sharing profits in the ratio of 6:4:1. Komal is
guaranteed a minimum profit of Rs. 2,00,000. The firm incurred a loss of Rs. 22,00,000 for the year
ended 31st March, 2018. Pass necessary journal entry regarding deficiency borne by Maanika and
Bhavi and prepare Profit and Loss Account.

Q 25. Ankur and Bobby were into the business of providing software solutions in India. They were
sharing profits and losses in the ratio 3 : 2. They admitted Rohit for the 1\5th share in the firm. Rohit
is guaranteed a minimum profit of Rs. 2,00,000 for the year. Any deficiency in Rohit's share is to be
borne by Ankur and Bobby in the ratio 4: 1. Losses for the year were ₹1,00,000. Pass the necessary
journal entries.

Q 26. Anil, Sunil and Ravinder entered into a partnership on 1st April 2023 to share profits in the
ratio of 2:1:1. It was provided in the deed that Ravinder's share of profit will not be less than Rs.
70,000 per annum. The losses for the year ended 31st March, 2024 were ₹2,00,000 before allowing
interest of ₹8,000 on Anil's Loan which is due for the current year.

You are required to show necessary account for division of loss and also pass the necessary journal
entries.

Q 27. X and Y were sharing profits in the ratio of 2 : 1. On 1st April, 2023. They admitted Z for 1/4
share in the profits. Z is guaranteed a minimum profit of Rs. 1,00,000 for the year. Any deficiency in
Z's share is to be borne by X and Y in the ratio of 3:2. Losses for the year ending 31st March, 2021
amounted to 1,20,000. Record necessary entries
Q 28. A, B and C are partners sharing profits in the ratio of 4 : 3: 2. It was provided that B’s share of
profit will not be less than Rs. 1,50,000 per annum. The losses for the year ended 31st March, 2024
were Rs. 85,000, before allowing interest on Loan of Rs. 1,00,000 taken from A on 1st June, 2023.
You are required to show necessary account for division of loss and pass necessary journal entries.

Q 29. A. B and C were partners sharing profits and losses in the ratio of 3 : 2 : 1. capitals on 1st April,
2023 were:

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A Rs.5,00,000; B Rs. 3,00,000 and C Rs. 2,00,000.

A had personally guaranteed that in any year C's share of profit after allowing interest on capital to
all partners @8% p.a. and charging interest on drawings @10% p.a. will not be less than ₹1,00,000.
The net profit for the year ended 31st March, 2024, before allowing or charging any interest
amounted to Rs. 4,32,000.

A has withdrawn Rs. 5,000 at the end of every month. B has withdrawn ₹15,000 at the end of every
quarter.

C has withdrawn Rs. 60,000 during the year.

Prepare Profit and Loss Appropriation Account for the year 2023-24.

Q 30. A. B, C and D are partners sharing profits in the ratio of 4:3:2:1. Dis a guarantee that his share
of profits in any given year would not be less than

Rs. 1,20,000. The profits for the year ended 31st March, 2023 amounted to ₹8,40,000. Pass
necessary entries in the books of the firm.

Q 31. Mita, Rita and Sandra were partners in a firm, sharing profits and losses in the ratio of 2:2:1.
Mita had personally guaranteed that in any year Sandra's share of profit, after allowing interest on
capital to all the partners @5% per annum and charging interest on drawings @4% per annum,
would not be less than ₹10,000

The capitals of the partners on 1st April, 2015 were :

Mita ₹80,000, Rita ₹50,000 and Sandra ₹30,000.

The net profit for the year ended 31st March, 2016, before allowing or charging any interest
amounted to ₹40,000. Mita had withdrawn ₹4,000 on 1st April, 2015, while Sandra withdrew ₹5,000
during the year.

You are required to prepare the Profit and Loss Appropriation Account for the year 2015-16.

Q 32. A, B and C entered into partnership on 1st July, 2023 to share Profit and Losses in the ratio of 5:
3: 2. A personally guaranteed that C's share of profit after charging interest on capital @8% per
annum would not be less than 1,60,000 pa. The Capital contributed were: A- Rs. 4,00,000; B-3,00,000
and C-2,00,000. Profit for the year ended 31st March 2024 was Rs. 474000 Prepare profit and Loss
Appropriation Account.

Q 33. A, B and C were partners in a firm having capitals of Rs 2,00,000; Rs 2,00,000 and Rs 80,000
respectively on 1st April, 2015. Their Current Account balances were A: Rs 20,000; B: Rs 10,000 and C:
Rs 5,000 (Dr.). According to the partnership deed the partners were entitled to interest on capital
@10% p.a. B being the working partners were also entitled to a salary of Rs 6,000 per quarter. The
profits were to be divided as follows:

(a) The first Rs 60,000 in proportion to their capitals.

(b) Next Rs 1,00,000 in the ratio of 4:3:1.
(c) Remaining profits to be shared equally.

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The firm made a profit of Rs 2,80,000 for the year ended 31st March, 2016 before charging any of the
above items. Prepare the P/L Appropriation A/c and pass necessary journal entry for the
appointment of profits.

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