Maxfort School – Rohini

Subject: Accountancy
Class: XII
Session: 2025 - 26
ASSIGNMENT - I

Q1. Ishu, Vishu and Nishu are partners in a firm sharing profits and losses in the
ratio of 2:3:5. Their fixed capitals were ₹1,50,000, ₹3,00,000 and ₹6,00,000
respectively. After the final accounts have been prepared it was discovered
that interest on capital was credited to them @ 12% instead of 10%.

(A)Nishu’s Current A/c will be Debited by ₹1,500.

(B) Nishu’s Current A/c will be Credited by ₹1,500.

(C) Nishu’s Capital A/c will be Credited by ₹1,500.

(D)Nishu’s Capital A/c will be Debited by ₹1,500.

Q2. Given below are two statements, one labelled as Assertion (A) and the other
labelled as Reason (R)

Assertion (A): Rent paid to partner is shown in P & L Appropriation A/c.

Reason (R): Rent paid to partner is a charge against the profits.

In the context of the above statements, which one of the following is

correct?

(A) (A) is correct, but (R) is wrong.

(B) Both (A) and (R) are correct.

(C) (A) is wrong, but (R) is correct.

(D) Both (A) and (R) are wrong.

Q3. If there exist insufficient profits for appropriations, the available profit is

distributed in:

(A) Profit-sharing ratio (B)Appropriation ratio

(C) Capital ratio (D) Equally

Q4. The interest on drawings to be charged from a partner on an amount of

30,000 @ 5% p.a. will be:

(A)₹15,000 (B) ₹1,500

(C) ₹750 (D)₹150

Q5. The journal entry for transfer of profits to reserves will be:

(A)Reserves A/C ……Dr.

To Profit & Loss Appropriation A/C

(B) Reserves A/C ……Dr.

To Profit & Loss A/C

(C) Profit & Loss Appropriation A/C ……Dr.

To Reserves A/C

(D)Profit & Loss A/C ……Dr.

To Reserves A/C

Q6. A, B, and C are partner’s sharing profits in the ratio of 5:3:2. According to the
partnership agreement C is to get a minimum amount of ₹ 18,000 as his share
of profits every year .The net profit for the year ended 31st March, 2019
amounted to ₹50,000 .How much amount is contributed?

(A)₹1,250; ₹3,750 (B) ₹4,000; ₹4,000

(C) ₹2,000; ₹5,000 (D)₹5,000; ₹3,000

Q7. A partnership firm earned divisible profit of ₹ 5,00,000, interest on capital is

to be provided to partner is ₹3,00,000, interest on loan taken from partner is
₹50,000 and profit-sharing ratio of partners is 5:3. Sequence the following in
correct way:

A. Distribute profits between partners

B. Charge interest on loan to Profit and Loss A/c

C. Calculate the net profit Transfer to Profit and Loss appropriation A/C.
 D. Provide interest on capital

Q8. P and Q were partners in a firm sharing profits in 3:1 ratio. Their respective
fixed capitals were ₹10,00,000 and ₹6,00,000. The partnership deed provided
interest on capital @ 12 % p.a. even if it will result into a loss to the firm. The
net profit of the firm for the year ended 31st March, 2023 was ₹1,50,000.

Pass necessary journal entries in the books of the firm allowing interest on
capital and division of profit/loss amongst the partners.

Q9. On 01.04.2018 Raheem and Kareem started partnership business. Raheem

contributed for ₹72,00,000 first and increased by ₹3,00,000 after seven
months. K a r e e m contributed₹ 3,00,000 first and increased it to ₹4,00,000
after five months and he withdrew out of capital₹ 2,00,000 after nine months

Calculate interest on capital on 31.03.2019 if rate of interest on capital is

12% p.a.

Q10. Sanjay, Sudha and Shakti are partners in a firm sharing profits in the ratio of
3:1:1. Their fixed capital balances are ₹4,00,000, ₹1,60,000 and ₹1,20,000
respectively. Net profit for the year ended 31st March, 2020 distributed
amongst the partners was ₹1,00,000, without taking into account the following
adjustments:

(a) Interest on capitals @ 2.5% p.a.

(b) Salary to Sanjay ₹18,000 p.a. and commission to Shakti ₹12,000.

(c) Sanjay was allowed a commission of 6% of divisible profit after charging

such commission.

Pass a rectifying journal entry in the books of the firm. Show workings
clearly.

Q11. Aman and Chaman are partners sharing profits and losses in the ratio of 2:1.
On 1st April, 2024 their capitals were Aman - ₹50,000 and Chaman - ₹40,000.

Prepare the Profit and Loss Appropriation Account and the Partners’ Capital
Account at the end of the year after considering the following items:

a) Interest on Capital is to be allowed @ 5% p.a.

 b) Interest on partners’ drawings @ 6% p.a. Drawings: Aman – ₹10,000 and
Chaman – ₹8,000.

c) Aman is entitled to get a salary @ ₹500 per month.

d) 10% of the divisible profit is to be transferred to Reserve.

They earned profit of ₹70,500 for the year ended 31 st March, 2025.

Q12. A, B and Care partners share profits and losses in the ratio of 3:2:1. Their
capitals ₹1,00,000, ₹75,000 and ₹50,000 respectively. They agreed to allow
interest on capital @ 10 % p.a. and agreed to charge interest on drawings
@10% p.a. Their drawings for the year were ₹10,000, ₹8,000 and ₹6,000
respectively. C was very active getting a salary of ₹2,000 per month and in
return, he guaranteed that firm’s profit would not be less than ₹80,000 before
charging or allowing interest and salary payable to C. Actual profit for the
year 2021 was ₹75,000. Prepare Profit and Loss Appropriation Account and
Partners Capital Account.