Samiksha, Ash and Divya were partners in a firm sharing profits and losses in the ratio of 5 : 3
: 2. With effect from 1st April, 2019, they agreed to share future profits and losses in the ratio
of 2 : 5 : 3. Their Balance Sheet showed a debit balance of ₹50,000 in the Profit and Loss
Account and a balance of ₹40,000 in the Investment Fluctuation Fund. For this purpose, it
was agreed that:
i. Goodwill of the firm be valued at ₹3,00,000.
ii. Investments of book value of ₹5,00,000 be valued at ₹4,80,000.
The capital accounts of Alka and Archana showed credit balances of ₹4,00,000 and
₹3,00,000 respectively, after taking into account drawings and net profit of ₹2,00,000. The
drawings of the partners during the year 2018-19 were:
i. Alka withdrew ₹10,000 at the end of each quarter.
ii. Archana’s drawings were:
₹
31st May, 2018 8,000
1 November, 2018
st
7,000
1st February, 2019 5,000
iii. Calculate interest on partners’ capitals @ 10% p.a. and interest on
partners’ drawings @ 6% p.a. for the year ended 31st March, 2019.
Vikas and Vivek were partners in a firm sharing profits in the ratio of 3 : 2. On 1.4.2014 they
admitted Vandana as a new partner for share in the profits with a guaranteed profit of Rs
1,50,000. The new profit sharing ratio between Vivek and Vikas will remain the same but
they decided to bear any deficiency on account of guarantee to Vandana in the ratio 2 : 3. The
profit of the firm for the year ended 31.3.2015 was Rs 9,00,000.
Prepare Profit and Loss Appropriation Account of Vikas, Vivek and Vandana for the year
ended 31.3.2015.
Yadu, Vidu and Radhu were partners in a firm sharing profits in the ratio of 4 : 3 : 3. Their
fixed capitals on 1st April, 2018 were ₹ 9,00,000, ₹ 5,00,000 and ₹ 4,00,000 respectively. On
1st November, 2018, Yadu gave a loan of ₹ 80,000 to the firm. As per the partnership
agreement:
i. The partners were entitled to an interest on capital @ 6 % p.a.
ii. Interest on partners' drawings was to be charged @ 8 % p.a.
The firm earned profits of ₹ 2,53,000 (after interest on Yadu’s loan) during the year 2018 -
19. Partners’ drawings for the year amounted to Yadu: ₹ 80,000, Vidu: ₹ 70,000 and Radhu:
₹ 50,000. Prepare Profit and Loss Appropriation Account for the year ending 31st March,
2019.
Ram, Mohan and Sohan were partners sharing profits in the ratio of 2 : 1 : 1. Ram withdrew ₹
3,000 every month and Mohan withdrew ₹ 4,000 every month. Interest on drawings @ 6%
p.a. was charged, whereas the partnership deed was silent about interest on drawings.
Showing your working clearly, pass the necessary adjustment entry to rectify the error.
A and B are partners sharing profits and losses in the ratio of 3 : 2. Their capital on 31st
March, 2018 after all adjustments stood at ₹1,65,500 and ₹1,27,600 respectively.
Profits amounting to ₹50,000 for the year 2017-18 were distributed after allowing interest on
drawings @ 12% p.a. During the year A withdrew ₹15,000 at the beginning of every quarter
and B withdrew ₹40,000 during the year. Partnership deed is silent on interest on drawings
but provides for interest on Capital @ 5% p.a. Interest on Capital has not been provided.
Showing your workings clearly, pass the necessary adjustment entry to rectify the above
errors.
OR
Arun, Shobha and Yuvraj were partners in a firm. On 1st April, 2018 their Fixed Capitals
Stood at ₹1,00,000, ₹50,000 and ₹50,000 respectively.
As per the provisions of partnership deed,
i. Partners were entitled to an annual salary of ₹20,000 each.
ii. Interest on Capital @ 10% p.a. was to be provided.
iii. Profits were to be shared in the ratio 3 : 1 : 1. Net profit for the year ended 31st
March, 2019 was ₹90,000.
Pass Journal Entries for the above in the books of the firm
1. Puneet and Akshara were partners in a firm sharing profits and losses in the ratio of
2:3. The following was the balance sheet of the firm as on 31st March, 2019.
Balance sheet of Puneet and Akshara as on 31st March, 2019.
Amount
Liabilities
(₹)
Capitals : Sundry Assets 200000
Puneet 90,000
Akshara 1,10,0002,00,000
2,00,000
The profits ₹ 40,000 for the year ended 31st March, 2019 were divided between the
partners without allowing interest on capital @ 5% p.a. and commission to Akshara
@ ₹ 1,000 per quarter. The drawings of the partners during the year were:
Puneet ₹ 2,500 per month.
Akshara ₹ 10,000 per quarter.
Showing your workings clearly, pass necessary adjustment entry in the books of the
firm.
20 Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4.
18 Their partnership deed provided for the following :
i. Interest on capital @ 5% p.a.
ii. Interest on drawing @ 12% p.a.
iii. Interest on partners’ loan @ 6% p.a.
iv. Moli was allowed an annual salary of ₹ 4,000; Bhola was allowed a commission of 10% of
net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of ₹ 1,50,000
after making all the adjustments as provided in the partnership agreement.
Their fixed capitals were Moli : ₹ 5,00,000; Bhola : ₹ 8,00,000 and Raj : ₹ 4,00,000. On 1st
April, 2016 Bhola extended a loan of ₹ 1,00,000 to the firm. The net profit of the firm for the
year ended 31st March, 2017 before interest on Bhola’s loan was ₹ 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended
31st March, 2017 and their Current Accounts assuming that Bhola withdrew ₹ 5,000 at the end
of each month, Moli withdrew ₹ 10,000 at the end of each quarter and Raj withdrew ₹ 40,000
at the end of each half year
P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were
Rs 2,00,000 and Rs 3,00,000 respectively. The partnership deed provided for interest on
capital @ 12% per annum. For the year ended 31st March, 2016, the profits of the firm were
distributed without providing interest on capital.
Pass necessary adjustment entry to rectify the error.
P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were
Rs 2,00,000 and Rs 3,00,000 respectively. The partnership deed provided for interest on
capital @ 12% per annum. For the year ended 31st March, 2016, the profits of the firm were
distributed without providing interest on capital.
Pass necessary adjustment entry to rectify the error.
