FUNDAMENTALS 2023

1. Hina and Neena are partners in a firm. Neena withdrew < 10,000 per
month at the beginning of each month during the year ended 31st
March, 2022. Interest on drawings was to be charged @ 6% per
annum.
st March, 2022

will be : 1
(a) < 3,900 (b) < 325
(c) < 3,600 (d) < 3,300

(ii) Vibha and Asha are partners in a firm. Asha withdrew < 1,000 at
the end of each quarter during the year ended 31st March, 2022.
Interest on drawings will be calculated for an average period of : 1
1
(a) 6 months (b) 4 months
2
1 1
(c) 7 months (d) 6 months

2 2
2. Aman and Chaman are partners in a firm. On 1st July, 2021 Aman
advanced a loan of < 6,00,000 to the firm. There is no partnership deed.
On 31st March, 2022, Aman was entitled to get the following amount as
interest on loan : 1
(a) < 36,000 (b) < 18,000
(c) < 9,000 (d) < 27,000
3Kavita, Savita and Madhu were partners in a firm with capitals of

< 6,00,000, < 4,00,000 and < 2,00,000 respectively. After providing
interest on capital @ 10% p.a., the profits are divisible as follows :
Kavita 1 , Savita 1 and Madhu 1 . Kavita personally guaranteed that
3 2 6
 less than < 1,00,000 in any year.

The profit for the year ending 31st March, 2022 amounted to <

3,00,000 before providing interest on capital.

5. The total profits of the firm after adjustment of guaranteed amount

will
be distributed between the partners as : 1
(a) Kavita < 60,000, Savita < 40,000 and Madhu
< 20,000 (b) Kavita < 50,000, Savita < 1,00,000
and Madhu < 30,000
(c) Kavita < 60,000, Savita < 90,000 and Madhu
< 30,000 (d) Kavita < 60,000, Savita < 1,00,000
and Madhu < 20,000 1

in a firm sharing profits and losses in the ratio of 7 :

< 12,000 at the
beginning of each quarter. Interest on drawings is charged @
6% p.a. The journal entry for
charging interest on drawings at the end of the year will be : 1
(a) Interest on drawings A/c Dr. < 1,800
Capital A/c < 1,800
(b) Interest on drawings A/c Dr. < 1,800
Current A/c < 1,800
(c) < 1,800
To Interest on drawings A/c < 1,800
(d) Profit and Loss Appropriation A/c Dr. < 1,800
To Interest on drawings A/c < 1,800
Rakshit and Malik are partners in a firm sharing profits and
losses in the ratio of 4 : 1. On 1st April, 2021, their
 capitals were
< 1,20,000 and < 80,000 respectively. On 1st December,
2021, they decided that the total capital of the firm
should be < 3,00,000 to be contributed by them in the
ratio of 2 : 1.
According to the partnership deed, interest on capital is
allowed to the partners @ 6% p.a.
Calculate interest on capital to be allowed for the year
ending 31 MAR 2022 3

FUNDAMENTAL-2021

Pass necessary journal entry

2020
1. In case the partners’ capitals are fixed, in which account will withdrawal

of capital be recorded ?

13. 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. FUNDAMENTAL-2020

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 1 st 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.

Chhavi and Neha were partners in a firm sharing profits and losses
equally. Chhavi withdrew a fixed amount at the beginning of each
quarter. Interest on drawings is charged @ 6% p.a. At the end of the
year, interest on Chhavi’s drawings amounted to
` 900. Pass necessary journal entry for charging interest on drawings.
FUNDAMENTAL- 2019
7.

The capital of the firm of Anuj and Benu is ` 10,00,000 and the
market rate of interest is 15%. Annual salary to the partners is `
60,000 each. The profit for the last three years were ` 3,00,000, `
3,60,000 and ` 4,20,000. Goodwill of the firm is to be valued on
the basis of two years purchase of last three years average super
profits. Calculate the goodwill of the firm. FUNDAMRNTAL 2019

Sonu and Rajat started a partnership firm on April 1, 2017.

They contributed
` 8,00,000 and ` 6,00,000 respectively as their capitals and
decided to share profitsand losses in the ratio of 3 : 2.
The partnership deed provided that Sonu was to be paid a salary
of ` 20,000 per month and Rajat a commission of 5% on
turnover. It also provided that interest on capital be allowed @
8% p.a. Sonu withdrew ` 20,000 on 1st December, 2017 and
Rajat withdrew ` 5,000 at the end of each month. Interest on
drawings was charged @ 6%
p.a. The net profit as per Profit and Loss Account for the year
ended 31st March, 2018 was ` 4,89,950. The turnover of the
firm for the year ended 31st March, 2018 amounted to `
20,00,000. Pass necessary journal entries for the above
transactions in the books of Sonu and Rajat.
OR FUNDAMENTAL-
2019

Jay, Vijay and Karan were partners of an architect firm sharing

profits in the ratio of 2 : 2 : 1. Their partnership deed provided
the following :
(i) A monthly salary of ` 15,000 each to Jay and Vijay.
(ii) Karan was guaranteed a profit of ` 5,00,000 and Jay guaranteed
that he will earn an annual fee of ` 2,00,000. Any deficiency arising
because of guarantee to Karan will be borne by Jay and Vijay in the
ratio of 3 : 2.
During the year ended 31st March, 2018 Jay earned fee of `
1,75,000 and the profits of the firm amounted to ` 15,00,000.
Showing your workings clearly prepare Profit and Loss
Appropriation Account and the Capital Account of Jay, Vijay and
Karan for the year ended 31st March, 2018.