- 1.
Tripathi and Chauhan are partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals were Rs. 60,000 and Rs. 40,000 as on April 01, 2019. During the year they earned a profit of Rs. 30,000. According to the partnership deed both the partners are entitled to Rs. 1,000 per month as salary and 5% p.a. interest on their capital. They are also to be charged an interest of 5%…
- 2.
Anubha and Kajal are partners of a firm sharing profits and losses in the ratio of 2:1. Their capitals were Rs. 90,000 and Rs. 60,000. The profit during the year were Rs. 45,000. According to partnership deed, both partners are allowed salary, Rs. 700 per month to Anubha and Rs. 500 per month to Kajal. Interest allowed on capital @ 5% p.a. The drawings during the year were Rs. 8,500 for Anubha…
- 3.
Harshad and Dhiman are in partnership since April 01, 2019. No Partnership agreement was made. They contributed Rs. 4,00,000 and Rs. 1,00,000 respectively as capital. In addition, Harshad advanced an amount of Rs. 1,00,000 to the firm, on October 01, 2019. Due to long illness, Harshad could not participate in business activities from August 1 to September 30, 2016. The profits for the year ended…
- 4.
Aakriti and Bindu entered into partnership for making garments on April 01, 2019 without any Partnership agreement. They introduced Capitals of Rs. 5,00,000 and Rs. 3,00,000 respectively on October 01, 2019. Aakriti advanced Rs. 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 Rs. 43,000. Partners…
- 5.
Rakhi and Shikha are partners in a firm, with capitals of Rs. 2,00,000 and Rs. 3,00,000 respectively. The profit of the firm, for the year ended 2016-17 is Rs. 23,200. As per the Partnership agreement, they share the profit in their capital ratio, after allowing a salary of Rs. 5,000 per month to Shikha and interest on partner's capital at the rate of 10% p.a. During the year Rakhi withdrew Rs…
- 6.
Lokesh and Azad are partners sharing profits in the ratio 3:2, with capitals of Rs. 50,000 and Rs. 30,000, respectively. Interest on capital is agreed to be paid @ 6% p.a. Azad is allowed a salary of Rs. 2,500 p.a. During 2016, the profits prior to the calculation of interest on capital but after charging Azad's salary amounted to Rs. 12,500. A provision of 5% of profits is to be made in respect…
- 7.
The partnership agreement between Maneesh and Girish provides that:- (i) Profits will be shared equally;
- (ii) Maneesh will be allowed a salary of Rs. 400 p.m.;
- (iii) Girish who manages the sales department will be allowed a commission equal to 10% of the net profits, after allowing Maneesh's salary;
- (iv) 7% p.a. interest will be allowed on partner's fixed capital;
- (v) 5% p.a. interest will be…
- 8.
Ram, Raj and George are partners sharing profits in the ratio 5:3:2. According to the partnership agreement George is to get a minimum amount of Rs. 10,000 as his share of profits every year. The net profit for the year 2013 amounted to Rs. 40,000. Prepare the Profit and Loss Appropriation Account.
- 9.
Amann, Babita and Suresh are partners in a firm. Their profit sharing ratio is 2:2:1. Suresh is guaranteed an amount of Rs. 10,000 as share of profit, every year. Any deficiency on that account shall be met by Babita. The profits for two years ending March 31, 2019 and March 31, 2020 were Rs. 40,000 and Rs. 60,000, respectively. Prepare the Profit and Loss Appropriation Account for the two years.
- 10.
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, 2020 shows a net profit of Rs. 1,50,050. Prepare the Profit and Loss Appropriation Account and partners current account by taking into consideration the following information: (i) Partners capital on April 1, 2019: Simmi Rs. 30,000; Sonu Rs…
- 11.
Arvind and Anand are partners sharing profits and losses in the ratio 3:1. Balances in their capital accounts on April 01, 2019 were: Arvind Rs. 4,40,000 and Anand Rs. 2,60,000. As per their agreement, partners were entitled to interest on capital @ 5% p.a., and interest on drawings was to be charged @ 6% p.a. Arvind was allowed an annual salary of Rs. 35,000 for the additional responsibilities…
- 12.
Ramesh and Suresh were partners in a firm sharing profits in the ratio of their capitals contributed on commencement of business which were Rs. 80,000 and Rs. 60,000 respectively. The firm started business on April 1, 2019. According to the partnership agreement, interest on capital and drawings are 12% and 10% p.a., respectively. Ramesh and Suresh are to get a monthly salary of Rs. 2,000 and…
- 13.
Sukesh and Vanita were partners in a firm. Their partnership agreement provides that:- (i) Profits would be shared by Sukesh and Vanita in the ratio of 3:2;
- (ii) 5% interest is to be allowed on capital;
- (iii) Vanita should be paid a monthly salary of Rs. 600. The following balances are extracted from the books of the firm, on March 31, 2017: Capital Accounts — Sukesh: Rs. 40,000 (Cr.); Vanita: Rs. 40,000 (Cr.) Current Accounts — Sukesh: Rs. 7,200 (Cr.); Vanita: Rs. 2,800 (Cr.) Drawings — Sukesh: Rs. 10,850; Vanita: Rs. 8,150 Net profit for the year, before charging interest on capital and after charging Vanita …
- 14.
Rahul, Rohit and Karan started partnership business on April 1, 2019 with capitals of Rs. 20,00,000, Rs. 18,00,000 and Rs. 16,00,000, respectively. The profit for the year ended March 2020 amounted to Rs. 1,35,000 and the partners' drawings had been Rahul Rs. 50,000, Rohit Rs. 50,000 and Karan Rs. 40,000. The profits are distributed among partners in the ratio of 3:2:1. Calculate the interest on…
- 15.
Sunflower and Pink Rose started partnership business on April 01, 2019 with capitals of Rs. 2,50,000 and Rs. 1,50,000, respectively. On October 01, 2019, they decided that their capitals should be Rs. 2,00,000 each. The necessary adjustments in the capitals are made by introducing or withdrawing cash. Interest on capital is to be allowed @ 10% p.a. Calculate interest on capital as on March 31…
- 16.
On March 31, 2017 after the close of accounts, the capitals of Mountain, Hill and Rock stood in the books of the firm at Rs. 4,00,000, Rs. 3,00,000 and Rs. 2,00,000, respectively. Subsequently, it was discovered that the interest on capital @ 10% p.a. had been omitted. The profit for the year amounted to Rs. 1,50,000 and the partners' drawings had been Mountain: Rs. 20,000, Hill Rs. 15,000 and…
- 17.
Following is the extract of the Balance Sheet of Neelkant and Mahadev as on March 31, 2020: Liabilities: Neelkant …
- 18.
Rishi is a partner in a firm. He withdrew the following amounts during the year ended March 31, 2020: May 01, 2019: Rs. 12,000 July 31, 2019: Rs. 6,000 September 30, 2019: Rs. 9,000 November 30, 2019: Rs. 12,000 January 01, 2020: Rs. 8,000 March 31, 2020: Rs. 7,000 Interest on drawings is charged @ 9% p.a. Calculate interest on drawings.
- 19.
The capital accounts of Moli and Golu showed balances of Rs. 40,000 and Rs. 20,000 as on April 01, 2019. They shared profits in the ratio of 3:2. They allowed interest on capital @ 10% p.a. and interest on drawings @ 12% p.a. Golu advanced a loan of Rs. 10,000 to the firm on August 01, 2019. During the year, Moli withdrew Rs. 1,000 per month at the beginning of every month whereas Golu withdrew…
- 20.
Rakesh and Roshan are partners, sharing profits in the ratio of 3:2 with capitals of Rs. 40,000 and Rs. 30,000, respectively. They withdrew from the firm the following amounts for their personal use: Rakesh: May 31, 2019 — Rs. 600; June 30, 2019 — Rs. 500; August 31, 2019 — Rs. 1,000; November 1, 2019 — Rs. 400; December 31, 2019 — Rs. 1,500; January 31, 2020 — Rs. 300; March 01, 2020 — Rs. 700…
- 21.
Himanshu withdrew Rs. 2,500 at the end of each month. The Partnership deed provides for charging interest on drawings @ 12% p.a. Calculate interest on Himanshu's drawings for the year ending March 31, 2017.
- 22.
Bharam is a partner in a firm. He withdraws Rs. 3,000 at the starting of each month for 12 months. The books of the firm are closed on March 31 every year. Calculate interest on drawings if the rate of interest is 10% p.a.
- 23.
Raj and Neeraj are partners in a firm. Their capitals as on April 01, 2019 were Rs. 2,50,000 and Rs. 1,50,000, respectively. They share profits equally. On July 01, 2019, they decided that their capitals should be Rs. 1,00,000 each. The necessary adjustment in the capitals were made by introducing or withdrawing cash by the partners. Interest on capital is allowed @ 8% p.a. Compute interest on…
- 24.
Amit and Bhola are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest on drawings is to be charged @ 10% p.a. Their drawings during 2019 were Rs. 24,000 and Rs. 16,000, respectively. Calculate interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year.
- 25.
Harish is a partner in a firm. He withdrew the following amounts during the year 2019: May 2019 Rs. 4,000; August 2019 Rs. 12,000; September 2019 Rs. 4,000; December 2019 Rs. 12,000; March 2020 Rs. 4,000. Interest on drawings is to be charged @ 7½% p.a. Calculate the amount of interest to be charged on Harish's drawings for the year ending March 31, 2020.
- 26.
Menon and Thomas are partners in a firm. They share profits equally. Their monthly drawings are Rs. 2,000 each. Interest on drawings is to be charged @ 10% p.a. Calculate interest on Menon's drawings for the year 2006, assuming that money is withdrawn:- (i) in the beginning of every month,
- (ii) in the middle of every month, and
- (iii) at the end of every month.
- 27.
On March 31, 2017, after the close of books of accounts, the capital accounts of Ram, Shyam and Mohan showed balance of Rs. 24,000, Rs. 18,000 and Rs. 12,000, respectively. It was later discovered that interest on capital @ 5% had been omitted. The profit for the year ended March 31, 2017, amounted to Rs. 36,000 and the partner's drawings had been Ram, Rs. 3,600; Shyam, Rs. 4,500 and Mohan, Rs…
- 28.
Amit, Sumit and Samiksha are in partnership sharing profits in the ratio of 3:2:1. Samiksha's share in profit has been guaranteed by Amit and Sumit to be a minimum sum of Rs. 8,000. Profits for the year ended March 31, 2017 was Rs. 36,000. Divide profit among the partners by preparing Profit and Loss Appropriation Account.
- 29.
Pinki, Deepti and Kaku are partners sharing profits in the ratio of 5:4:1. Kaku is given a guarantee that his share of profits in any given year would not be less than Rs. 5,000. Deficiency, if any, would be borne by Pinki and Deepti equally. Profits for the year amounted to Rs. 40,000. Record necessary journal entries in the books of the firm showing the distribution of profit.
- 30.
Abhay, Siddharth and Kusum are partners in a firm, sharing profits in the ratio of 5:3:2. Kusum is guaranteed Rs. 10,000 as her share in the profits. Any deficiency arising on that account shall be met by Siddharth. Profits for the years ending March 31, 2016 and 2017 are Rs. 40,000 and Rs. 60,000 respectively. Prepare Profit and Loss Appropriation Account.
- 31.
Radha, Mary and Fatima are partners sharing profits in the ratio of 5:4:1. Fatima is given a guarantee that her share of profit, in any year will not be less than Rs. 5,000. The profits for the year ending March 31, 2020 amounted to Rs. 35,000. Shortfall if any, in the profits guaranteed to Fatima is to be borne by Radha and Mary in the ratio of 3:2. Record necessary journal entry to show…
- 32.
X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3:2:1, respectively. Z's share in the profit is guaranteed by X and Y to be a minimum of Rs. 8,000. The net profit for the year ended March 31, 2020 was Rs. 30,000. Prepare Profit and Loss Appropriation Account.
- 33.
Arun, Boby and Chintu are partners in a firm sharing profit in the ratio of 2:2:1. According to the terms of the partnership agreement, Chintu has to get a minimum of Rs. 60,000, irrespective of the profits of the firm. Any deficiency to Chintu on account of such guarantee shall be borne by Arun. Prepare the Profit and Loss Appropriation Account showing distribution of profits among the partners…
- 34.
Ashok, Brijesh and Cheena are partners sharing profits and losses in the ratio of 2:2:1. Ashok and Brijesh have guaranteed that Cheena share in any year shall be Rs. 20,000. The net profit for the year ended March 31, 2017 amounted to Rs. 70,000. Prepare Profit and Loss Appropriation Account.
- 35.
Ram, Mohan and Sohan are partners with capitals of Rs. 5,00,000, Rs. 2,50,000 and Rs. 2,00,000 respectively. After providing interest on capital @ 10% p.a. the profits are divisible as follows: Ram 1/2, Mohan 1/3 and Sohan 1/6. Ram and Mohan have guaranteed that Sohan's share in the profit shall not be less than Rs. 25,000, in any year. The net profit for the year ended March 31, 2017 is Rs…
- 36.
Amit, Babita and Sona form a partnership firm, sharing profits in the ratio of 3:2:1, subject to the following:- (i) Sona's share in the profits, guaranteed to be not less than Rs. 15,000 in any year.
- (ii) Babita gave guarantee to the effect that gross fee earned by her for the firm shall be equal to her average gross fee of the preceding five years, when she was carrying on profession alone…
- 37.
The net profit of X, Y and Z for the year ended March 31, 2020 was Rs. 60,000 and the same was distributed among them in their agreed ratio of 3:1:1. It was subsequently discovered that the under mentioned transactions were not recorded in the books:- (i) Interest on Capital @ 5% p.a.
- (ii) Interest on drawings amounting to X Rs. 700, Y Rs. 500 and Z Rs. 300.
- (iii) Partner's Salary: X Rs. 1,000, Y…
- 38.
The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2:2:1, have existed for some years. Ali wants that he should get equal share in the profits with Harry and Porter and he further wishes that the change in the profit sharing ratio should come into effect retrospectively for the last three years. Harry and Porter have agreement on this account. The profits for the…
- 39.
Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3:2. Following is the balance sheet of the firm as on March 31, 2017: Liabilities — Mannu's Capital Rs. 30,000; Shristhi's Capital Rs. 10,000; Total Rs. 40,000. Assets — Drawings: Mannu Rs. 4,000, Shristhi Rs. 2,000; Other Assets Rs. 34,000; Total Rs. 40,000. Profit for the year ended March 31, 2017 was Rs. 5,000 which was…
- 40.
On March 31, 2017 the balance in the capital accounts of Eluin, Monu and Ahmed, after making adjustments for profits, drawings, etc., were Rs. 80,000, Rs. 60,000 and Rs. 40,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @ 5% p.a. The drawings during the year were Eluin Rs…
- 41.
Azad and Benny are equal partners. Their fixed capitals are Rs. 40,000 and Rs. 80,000, respectively. After the accounts for the year have been prepared it is discovered that interest at 5% p.a. as provided in the partnership agreement, has not been credited to the capital accounts before distribution of profits. It is decided to make an adjustment entry at the beginning of the next year. Record…
- 42.
Mohan, Vijay and Anil are partners, the balances in their capital accounts being Rs. 30,000, Rs. 25,000 and Rs. 20,000 respectively. In arriving at these figures, the profits for the year ended March 31, 2017 amounting to Rs. 24,000 had been credited to partners in the proportion in which they shared profits. During the year the drawings of Mohan, Vijay and Anil were Rs. 5,000, Rs. 4,000 and Rs…
- 43.
Anju, Manju and Mamta are partners whose fixed capitals were Rs. 10,000, Rs. 8,000 and Rs. 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 these years remained as follows: Year 2016: Anju 4, Manju 3, Mamta 5; Year 2017: Anju…
