Class XII ACCOUNTANCY ASSIGNMENT – Fundamentals of Partnership

Q1) Rani and Shyamare partners in a firm. They are entitled to interest on their capital but the net
profit was not sufficient for paying his interest, then the net profit will be distributed among partner
in:-

a.1 : 2

b. Profit Sharing Ratio

c. Capital Ratio

d. Equally (1)
Q2)Assertion:A)Partner Salary items is recorded in the Profit and Loss appropriation account
Reasoning: B)In partnership business there is no relationship of employer and employee.

a) Both A and B are correct

b) Both A and B are incorrect

c) Only A is correct and B is false

d) Only B is correct (1)

Q4) If fixed amount is withdrawn on the last day of every month and interest on drawings is charged
@10% p.a.Interest on drawing amounted to Rs2,750 . What will be drawing amount. a.Rs. 2,500p.m.
b.Rs. 10,000p.m. c.Rs. 7,500p.m. d.Rs. 5,000 per month (1)

Q5) Assertion: A) In the absence of partnership deed partners share profit and loss in ratio of
CapitalEmployed. Reasoning: B)Capital ratio is more profitable to the partners.

a) Both A and B are correct

b) Both A and B are incorrect

c) Only A is correct and B is false

d) Only B is correct (1)

Q6) A partnership firm earned divisible profit of Rs. 5,00,000, interest on capital to be provided to
partner is Rs. 3,00,000, interest on loan taken from partner is Rs. 50,000 and profit sharing ratio of
partners is 5:3. Sequence the following in correct way (i) Distribute profits between partners (ii)
Charge interest on loan to Profit and Loss A/c (iii) Calculate the Net Profit to be transferred to Profit
and Loss Appropriation A/c (iv) Provide interest on capital

a) i-ii-iii-iv

b) iv-i-iii-ii

c) ii-iii-iv-i

d) ii-iv-iii-I (1)
Q7) Moli, Bhola & Raj were partners in a firm sharing profits and losses in the ratio of 3:3:4. Their
partnership deed provided for the following: (i)Interest on capital @ 5% p.a. (ii)Interest on drawings
@ 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 & Loss A/C 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 & Loss
Appropriation A/C and Partners’ 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 ₹ 10,000 at the
end of each half year. (6)

Q8) X, Y and Z are in partnership with capital of ₹1,20,000 (Cr.), ₹ 1,00,000 (Cr.) and ₹ 8,000(Dr.)
respectively on 1st April 2017. The partnership deed provides for the following: (i)7.5% of Net profit
to be transferred to General Reserve. (ii) Partners are to be allowed interest on capital @5%p.a. and
are to be charged interest on drawings @ 6%p.a. (iii)Z is entitled to a salary of ₹ 7,000. (iv)X is
entitled to a commission of 10% of the net profit before making any appropriation. (v)Y is entitled to
a commission of 8% of the net profit before charging Interest on drawings but after making all
appropriations. During the year X withdrew ₹ 1,000 in the beginning of every month, Y withdrew ₹
1,000 during the month and Z withdrew ₹ 1,000 at the end of every month. On 1st October 2017, Z
granted a loan of ₹ 6,00,000 to the firm. The manager is entitled to a salary of ₹ 1,000 p.m. and a
commission of 10% 0f Net profits after charging his salary and Commission. The net profit of the firm
for the year ended 31st March 2018 before providing for any of the above adjustments was ₹
1,62,000. Prepare Profit & Loss Appropriation A/C. (6)

Q 9) Asha, Nisha and Jagat are partners in a firm sharing profits & Losses in the ratio 3:2:1. On 1st
April 2017 their capitals balances were ₹ 8,00,000, ₹ 6,00,000 and ₹ 4,00,000 respectively. Partners
are entitled to Interest on Capital @ 6% p.a., salary to Asha @ ₹ 4,000 per month and a commission
of ₹ 6,000 per quarter to Jagat as per the provisions of the partnership deed. Asha’s share of profit
excluding interest on capital is guaranteed at ₹ 60,000 p.a. Jagat’s share of profit including interest on
capital but excluding salary/ commission is guaranteed at ₹ 50,000 p.a. Any deficiency arising on that
account shall be met by Nisha. The profit of the firm for the year ended 31st March 2018 amounted
to ₹ 3,00,000. Prepare Profit and Loss Appropriation for the year ended 31st March 2018. (5)

Q 10) A, B and C were partners in a firm. On 1st April 2018, their capitals stood at ₹ 5,00,000 ₹
2,50,000 and ₹ 2,50,000 respectively. As per the provisions of the partnership deed: (i)C was entitled
to a salary of ₹ 5,000 per month. (ii)A was entitled to a commission of ₹ 80,000 p.a. (iii)Partners were
entitled to interest on capital @ 6% p.a. (iv)Partners will share profits in ratio of their capitals. Net
profit for the year ended 31st March 2019 was ₹ 3,00,000 which was divided equally, without
providing for the above provisions. Showing your working clearly, pass necessary journal entry for
the above. (4)

Q 11) When capital accounts are fixed, Partners Capital A/C can either have a debit balance or a
credit balance. State whether it is true or false. Give reason (1)

Q 12) On which side Partner’s drawings out of capital will be recorded, when capitals are fixed:
(i)Debit side of Capital A/C (ii) Credit side of Capital A/C (iii) Debit side of Current A/c (iv)Credit side
of Current A/C. (1)

Q 13) Maximum number of partners/members in a partnership firm is ___________. (1)

Q15) Claculate interest on Sohan’s drawings if he has withdrawn ₹ 15,000 during the year and
interest on drawing is charged @ 15%. (1)

Q16) Neena and Sara were partners in a firm with fixed capital of ₹ 5,00,000 and ₹ 4,00,000
respectively. It was discovered that interest on capital @ 6% p.a. was credited to the partners for the
two years ending 31st March,2018 and 31st March 2019 whereas there was no much provision in the
partnership deed. The profit sharing ratio during the last two years was: 2017-18 4:5 2018-19 5:1
Showing your working clearly, pass the necessary adjustment entry to rectify the error (3)