ST.
LAWRENCE PUBLIC SR SEC SCHOOL
Accountancy (Sub. Code-055)
Class XII Cycle Test I (2024-25)
Time :1 hr M.M-20
Select the correct alternative :
[Link], Sumit and Kiara are partners sharing profits and losses in the ratio [Link]. Sumit is entitled to a
commission of 15% on the net profit after charging such commission. The net profit before charging commission
is ₹ 9,20,000. The amount of commission payable to Sumit will be (1)
(a) ₹ 1,20,000 (b) ₹ 1,38,000 (c) ₹ 48,000 (d) ₹ 55,200
Q2. A, B and C who were sharing profits and losses in the ratio of [Link] decided to share the future profits and
losses in the ratio of [Link] with effect from 1st April, 2023. An extract of their Balance Sheet as at 31st March
,2023 is: (1)
Liabilities Amount(₹) Assets Amount(₹)
Workmen Compensation Reserve 65,000
At the time of reconstitution, a certain amount of claim on workmen compensation was determined for which
B’s share of loss amounted to ₹ 5,000. The Claim for workmen compensation would be:
(a) ₹15,000 (b) ₹70,000 (c) ₹50,000 (d) ₹80,000
Q3. Excess amount that a firm gets over & above the market value of assets at the time of sale of its business is :
(a) Profit (b) Super Profit (c ) Reserve (d) Goodwill (1)
Q4. Naman, Suman and Mohit were partners in a firm sharing profits in the ratio [Link]. With effect
from 1st April, 2022, they decided that in future, they will share the profits in the ratio [Link]. Identify the gain or
sacrifice by the partners due to change in profit sharing ratio, from the following : (1)
(a) Naman's gain 3/16 , Suman's sacrifice 1/16, Mohit's sacrifice 2/16
(b) Naman's sacrifice 3/16 , Suman's gain 1/16, Mohit's gain 2/16
(c) Naman's sacrifice 3/16 , Suman's gain 2/16, Mohit's gain 1/16
(d) Naman's gain 3/16 , Suman's sacrifice 2/16 , Mohit's sacrifice 1/16
Q5. Asha , Nisha and Hiten were partners in a firm sharing profits and lossesin the ratio of [Link]. Their fixed
capitals were ₹ 2,00,000, ₹ 1,50,000 and ₹ 1,00,000 respectively. The partnership deed provided for interest on
capital @ 10% p.a. For the year ended 31st March,2023, profits of the firm were distributed without providing
interest on capital. Pass the necessary adjusting Journal entry to rectify the error. (3)
Q6. Calculate goodwill of a firm on the basis of three years purchases of the Weighted Average Profits of the last
four years. The profits of the last four years were: (3)
(1)
Year (ending 31st March) 2020 2021 2022 2023
Amount (₹) 28,000 27,000 46,900 53,810
a)On 1st April, 2020 a major plant repair was undertaken for ₹10,000 which was charged to revenue. The said
sum is to be capitalized for goodwill calculation subject to adjustment of depreciation of 10% on reducing
balance method
b) For the purpose of calculating Goodwill the company decided that the years ending 31.03.2020 and 31.03.2021
be weighted as 1 each (being COVID affected) and for year ending 31.03.2022 and 31.03.2023 weights be taken
as 2 and 3 respectively.
[Link], Seema and Mahesh were partners sharing profits and losses in the ratio of [Link]. With effect from 1st
April, 2019, they mutually agreed to share profits and losses in the ratio of [Link]. On that date, there was a
workmen's compensation fund of ₹ 90,000 in the books of the firm. It was agreed that:
(i) Goodwill of the firm be valued at ₹ 70,000.
(ii) Claim for workmen's compensation amounted to ₹ 40,000.
(iii) Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ 40,000.
Pass necessary journal entries for the above transactions in the books of the firm. (4)
Q8. Rahim and Sudesh, the two partners of a business firm, agreed to appropriate the profits of their firm on
the following terms: (6)
(a) Interest is payable on capital @ 5% per annum.
(b) Rahim will be entitled to a salary of ₹ 500 per month.
(c Loan advanced by a partner to the firm is to carry interest @ 10% per annum
(d) Interest on drawings to be charged from the partners @ 5% per annum.
(e) Sudesh will get commission @ 1% on the sales made during the year.
(f) Rahim is entitled to a rent of ₹ 25,000 per annum for allowing the firm to carry on the business in his
premises.
The net profit of the firm for the year ended 31st March, 2019, was ₹ 1,75,500 before taking into account any
of the above terms.
Particulars Rahim Sudesh
₹ ₹
Capital Balances on 1st April, 2018 1,50,000 1,40,000
Loan advanced to the Firm on 1st October, 2018 ----- 1,00,000
Drawings made during the year 40,000 30,000
Loan taken from the firm on 1st July 2018 @ 12% p.a. 50,000
During the year 2018-19, sales of the firm amounted to ₹ 7,00,000.
From the above information, prepare :
(a) Profit and Loss Appropriation Account. (b) Partner's Capital Accounts.
(2)
