GURU NANAK PUBLIC SCHOOL, SARABHA NAGAR, LUDHIANA

ASSIGNMENT ACCOUNTANCY SEPT. 2023

Class XII

PARTNERSHIP

Q:-1) Calculate interest on drawings if Partner Q withdrew 6000 at the end of each month and interest
rate is 6% p.a. 1

Q:- 2) when a creditor takes over an asset whose value is less than the amount due to him in full
settlement of his claim, what entry shall be passed? 1

Q:- 3) Total creditors amount to Rs.5,00,000. Investments valued at Rs.2,00,000 were not shown in the
books. One of the creditors took over these investment in full satisfaction of his claim of 2,20,000.
Remaining creditors were paid at 5% discount. Pass entry for payment. 1

Q:-4) P,Q and R sharing profits and losses in ratio of 3:2:1, decide to share future profits and losses in
the ratio of 4:3:2 with effect from 1st April, 2017. Following is an extract of their Balance Sheet as at
31.3.2017

Liabilities Rs. Assets Rs.

Workmen compensation Reserve 60,000
Case 1:: If there is no other information

Case 2:: If a claim on account of Workmen’s compensation Reserve is estimated at Rs.24,000.

Pass journal entries for treatment of workmen compensation Reserve of both cases at the time of
change in profit sharing ratio. 2

Q:-5) A and B are partners but they do not have any partnership agreement. How will they solve the
following disputes between them?

(1) A wants that profits should be shared in the capital ratio.

(2) B wants that he should be paid salary for devoting more time for the business of the firm. 2

Q:-6) A and B contribute 5,00,000 and 3,00,000 respectively by way of capital on which they agree to
allow interest at 6% p.a. Their respective share of profit is 3:2 and the profit for the year is 40,000 before
allowing interest on capitals. Prepare the necessary account to allocate interest on capitals When the
partnership deed is silent about the treatment of interest on capital. 3

Q:-7) A, B, C and D are partners in a firm sharing profits and losses in the ratio of 2:2:1:1. They decided
to share profits in future in the ratio of 4: 3:2:1. For this purpose goodwill of the firm was valued at
1,80,000. There was also a reserve of 60,000 in the books of the firm.

Find out sacrifice and gaining ratio and pass necessary journal entry assuming that partners do not want
to distribute the reserve. 3

Q:-8) X, Y and Z sharing profits and losses in the ratio of 1:2:2, decide to share future profits equally with
effect from 1st April, 2016. On that date, Profit & Loss Account showed a credit balance of 1,20,000.

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Partners do not want to distribute the profit but prefer to record the change in the profit sharing ratio
by passing an adjustment entry. You are required to give the adjusting entry. 3

Q:-9) On 1st April, 2020 an existing firm had assets of 2,00,000 including cash of 24,000. Its creditors
amounted to 10,000 on that date. The partner's capital accounts showed a balance of 1,60,000 while
the general reserve amounted to 30,000. If the normal rate of return is 15% and the goodwill of the firm
is valued at 36,000 at 3 year's purchase of super profit, find the average profits of the firm. 3

Q:-10) Calculate goodwill of the firm on the basis of 3 year's purchase of the average profits of the last
five years. The profits of the last five years were:

Year Amount (Rs.)

2013-14. 4,00,000

2014-15. 5,00,000

2015-16 (60,000)

2016-17. 1,50,000

2017-18 2,50,000

Additional Information:

On 1st January, 2016, a fire broke out which resulted into a loss of goods of 3,00,000. A claim of 70,000
was received from the insurance company.

During the year ended 31st March, 2017 the firm received an unexpected refund of 80,000. 3

Q:- 11) Ram and Shyam are partners sharing profits and losses in ratio of 7 : 5. They admit Gopi as a new
partner for 1/6th share, which he acquires equally from Ram and Shyam. Calculate new profit sharing
ratio of the partners. 3

Q:- 12) A, B, C and D are partners sharing profits in the ratio of 1:4:3: 2. D retired and the goodwill is
valued at 2,00,000. D's share of goodwill is to be adjusted into the capital accounts of A, B and C who
decide to share future profits in the ratio of 4:3:3. Pass necessary journal entry. 3

Q:-13) Parth, Angad and Leesha are partners in a firm sharing profits and losses in the ratio of 3:2: 1
respectively. Angad retires and his claim, including Capital and entitlements from the firm including his
share of Goodwill of the firm, is 50,000. After this amount was determined, it was found that there
was an unrecorded piece of furniture valued at 12,000 which had to be recorded. Upon recording this
piece of furniture, the revised amount due to Angad was determined and settled by giving him this piece
of furniture and the balance in cash.

You are required to give the journal entries for recording the payment to Angad in firm’s books. 3

Q:-14) Asha and Lata are partners with Capitals of 5,00,000 and 4,00,000 respectively, on which they are
entitled to interest at 10% p.a. They divide profits in the ratio of 2 : 1. They take Sudha, Manager of the
business for the past 15 years, as partner in the firm with 1/4th share of profits and guaranteed that her
share of profits will not be less than 2,00,000. Sudha brought 3,00,000 as her capital. Any excess profits

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received by Sudha over her 1/4th share will be borne by Asha and Lata in the ratio of 4: 1. Profits for the
year ended 31st March 2019 before allowing interest on capitals amounted to 7,20,000. Distribute the
profits by preparing appropriate account. 4

Q:-15) George and Henry are partners sharing profits in the ratio of 3:2. They decided admit David as a
new partner and to share future profits and losses equally. David brings in 50,000 as his capital, Goodwill
of the firm is valued at 60,000 on the day of admission. Goodwill already appear in books at 50,000.

Record the necessary journal entries. 4

Q:- 16) A, B and C are partners in a firm. A retires on 1st April, 2012. On the date of retirement, 80,000 is
due to him in all. It is agreed to pay him this amount in instalments every year at the end of the year.
Prepare A's Loan A/c when Four yearly instalments plus interest @ 10% p.a is paid.

Books are closed on 31st March every year. 4

Q:- 17) Ravi and Mohan were partners in a firm sharing profits in the ratio of 7: 5. Their respective fixed
capitals were Ravi 10,00,000 and Mohan 7,00,000. The partnership deed provided for the following.

(1) Interest on Capital @ 12% p.a

(2) Ravi's salary 6,000 per month and Mohan's salary 60,000 per year.

The profit for the year ended 31-3-2019 was 5,04,000 which was distributed equally, without providing
for the above. Pass an adjustment entry. Show your workings clearly. 5

Q:- 18) Aarti, Bharti and Seema are partners sharing profits in the proportion of 3:2:1 and their Balance
Sheet on March 31, 2015 stood as follows. BALANCE SHEET as at March 31, 2015

Liabilities Amount Assets Amount

Bills payable 12,000 Buildings 21,000
Creditors 14,000 Cash in Hand 12,000
Contingency Reserve 12,000 Bank 13,700
Capital Debtors 12,000
Aarti 20,000 Bills Receivable 4300
Bharti 12,000 Stock 1750
Seema 8,000 Investment 13,250
78,000 78,000
Bharti died on June 12, 2015 and according to the deed of the said partnership her executors are
entitled to be paid as under:

1. The capital to her credit at the time of her death and interest thereon @ 10% per annum.
2. Her proportionate share of reserve fund.
3. Her share of profits for the intervening period will be based on the sales during that period,
which were calculated as 1,00,000. The rate of profit during past three years had been 10% on
sales.
4. Goodwill according to her share of profit to be calculated by taking twice the amount of the
average profit of the last three years less 20%. The profits of the previous years were:

2013-- 8,200, 2014—9,000, 2015-- 9,800

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 The investment were sold at par and executors were paid out.

Prepare Bharti’s capital account and executor’s account. 6

Q:-19) X, Y and Z were partners in a firm sharing profits and losses in the ratio of 3:2:1. following was the
balance sheet as at date of dissolution

Liabilities Amount Assets Amount

Creditors 18,500 Bank balance 1,000
Mrs. Y’s loan 5,000 Debtors. 15,000
X’s loan 8,000 Less: provision 1,000 14,000
General reserve 30,000 Stock 1,15,000
Investment fluctuation fund 7,500 Investments 20,000
Capital accounts Plant 75,000
X 60,000
Y 56,000
Z 40,000
2,25,000 2,25,000
Following transactions took place:

I. X took over the investments at 25% more than the book value.
II. Y took over debtors amounting to 5,000 at 4,000. Remaining debtors realised 75% of their
book value.
III. Stock is sold for 59,000 and plant is sold for 40,000.
IV. Expenses of realisation amounted to 1,000. It was also found that there is a liability for
8,000 for damages, which also had to be paid.

Prepare realisation accounts, partner’s capital account and bank account. 8

Q:- 20) Ishu and Vishu are partners sharing profits in the ratio of 3:2. Their Balance sheet as at 31st
March 2018 was as follows:

Liabilities AmountAssets Amount

Creditors 66,000
Bank 87,000
General reserve 9,000
Debtors. 42,000
Investment fluctuation fund 5,000
Less: provision 7,000 35,000
Capital Investment (market price 19,000) 21,000
Ishu 1,19,000 Building 98,000
Vishu 1,12,000 Plant and machinery 70,000
3,11,000 3,11,000
Nishu was admitted on 1 April, 2018 for 1/6th share on the following terms
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(1) Nishu will bring 56,000 as his share of capital.

(2) Goodwill of the firm is valued at 84,000 and Nishu will bring his share of Goodwill in cash.
(3) Plant and Machinery be appreciated by 20%
(4) All debtors are good.
(5) There is a liability of 9,800 included in Creditors that is not likely to arise.
(6) Capital of Ishu and Vishu will be adjusted on the basis of Nishu’s capital and any excess or
deficiency will be made by withdrawing or bringing in cash by the concerned partner.

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 Prepare Revaluation Account, the Partners’ Capital Accounts and the Balance sheet of f the firm after
the above adjustments. 8

SHARE CAPITAL

Q:- 21) Aravali Ltd. Issued 10,000 shares of 10 each at par for which Application were received for
40,000 shares. Amount called up: On application 4, on allotment 3 and on final call the remaining
amount. Shares were allotted on pro-rata basis. Excess money will be refunded after utilization for
allotment. The Bank A/c will be credited with ……….. . 1

Q:-22) Sico Ltd. took over the assets of 4,80,000 and liabilities of 80,000 of Mittal Ltd. for a consideration
of 3,20,000. Rs.20,000 were paid by an acceptance in favour of Mittal Ltd. payable after 3 months and
the balance by issue of fully paid 8% Preference Shares of 100 each at a premium of 50%. Pass the
necessary journal entries for the above transactions in the books of Sico Ltd. 4

Q:-23) X Ltd. invited applications for 20,000 shares of 10 each payable as follows. 3 on Application; 2 on
Allotment, 2.50 on First Call and 2.50 on Second Call. Public applied for 30,000 shares and the allotments
were made as under:

To Applicants for 8,000 shares…………… full

To Applicants for 16,000 shares …………… 12,000 shares

To Applicants for 6,000 shares. …………… Nil

All moneys were duly received, except final call on 100 shares. These share are forfeited and further
reissue @ Rs. 12 per share 6

Pass Journal Entries.

Q:- Give four points of utilisation of security premium. 4