KP PUC (3)
KP PUC (3)
ACCOUNTANCY
REVISION TEST PAPERS
PART - A
One Mark Questions:
I] Multiple Choice Questions:
1] The agreement between partner may be in
a] Oral
b] Written
c] Oral or Written
d] Duplicate
2] Partnership deed may not contains:
a] Name of the firm
b] Name and address of the partners
c] Profit and loss sharing ratio
d] Ownership of property.
3] If any partner has advanced some money to the firm beyond the amount of his
capital, he shall be entitled to get interest on the amount at the rate of:
a] 5% p.a.
b] 6% p.a.
c] 8% p.a.
d] 7% p.a.
4] Interest on capital is generally provided for, when:
a] The partners contribute unequal amounts of capital but share profits equally.
b] The partners contribute equal amounts of capital but share profit unequally
c] Both (a) & (b) situation
d] The partners contribute equal amounts of capital but withdrawn unequally.
5] When fixed amount is withdrawn on the first day of every month, interest
on total amount for the year ending will be calculated for:
a] 5 & 1/2 months
b] 4 &1/2 months
c] 6 &1/2 months
d] 6 months
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6] When varying amounts are withdrawn at different intervals, the interest is
calculated by using:
a] Simple Method
b] Average Method
c] Product Method
d] Weighted method
7] Adjustment for correction of omission and commission can be made in
a] Profit and loss adjustment account
b] Directly in the Capital Accounts of concerned partners
c] Revaluation account
d] Both (a) & (b) situations.
8] In order to form a Partnership there should be at least,
a] One person
b] Two people
c] Seven people
d] Fifty people
9] The business of a partnership concern may be carried on by
a] Two partners
b] All the partners
c] Any of them acting for all
d] All Partners or any of them acting for all.
10] The agreement between Partners must be to share:
a] Profits
b] Losses
c] Profits and losses
d] Duties and responsibilities
11] The liability of a Partner for acts of the firm is
a] Limited
b] Unlimited
c] Minimum
d] Maximum
12] The partnership Deed should be properly drafted and prepared as per the
provisions of the
a] Partnership Act.
b] Stamp Act
c] Companies Act
d] Registration Act
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13] The clauses of Partnership Deed can be altered with the consent of,
a] Two Partners
b] Ten Partners
c] Twenty Partners
d] All the Partners
14] In absence of partnership deed profits or losses must be shared in
a] Capital proportion
b] Equal
c] Agreed proportion
d] Any other proportion
15] When the dates of withdrawal are not specified, interest on drawings is to be
calculated for the average period of
a] 5 months
b] 6 months
c] 7 months
d] 8 months
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13] Profit and Loss appropriation account Dr. To
account.
(Transferring interest on capital to P/L appropriation account).
14] Account Dr.
To Salary to partners account
(Transferring partners salary to P/L Appropriation A/c)
15] P/L Appropriation A/c Dr.
To Partners Capital /Current A/c.
(
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PART - B
Two Marks questions:
1] What is partnership?
2] Define Partnership.
3] What is a partnership deed?
4] What is the fixed capital method?
5] What is the fluctuating capital method?
6] State any two differences between fixed and fluctuating capital methods.
7] What is the guarantee of profit to a partner?
8] What do you mean by past adjustments?
9] Name any two methods for calculation of Interest on drawings.
10] When do the Interest on drawings be generally provided to partners?
11] How do you close a profit and loss appropriation account in partnership?
12] State any two special aspects of partnership accounts.
PART - C
Six Marks questions:
Problems on Preparation of P & L Appropriation A/c
1] Shreshtha and Jyeshtha commenced business in partnership on 01.04.2023 with
a capital of `4,00,000 and `3,00,000 respectively agreeing to share profits and
losses in the ratio of 3:2. For the year ending 31.03.2024, they earned the profits
of `66,000 before allowing:
i] Interest on capital at 5% p.a.
ii] Interest on drawings: Shrestha `2,000 and Jyeshtha `1,500
iii] Yearly salary of Shreshtha `6,000 and commission to Jyeshtha `4000.
iv] Their drawings during the year: Shreshtha `40,000 and Jyeshtha
`30,000.
Prepare Profit and Loss Appropriation Account.
2] Shivam and Swayam are partners sharing profits in the ratio of 2:1 with capitals
of `2,50,000 and `1,50,000 respectively. Interest on capital is agreed @ 5 % p.a.
Swayam is to be allowed an annual salary of `8,000. During the year 2023-24,
they earned a profits of `30,000. A provision of `2000 is to be made in respect of
commission to the manager. Interest on drawings being; Shivam `2000 and
Swayam `1000.
Prepare Profit and Loss Appropriation Account.
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3] Salim & Khadar are Partners commenced Partnership business on 1.4.2023
sharing profits & losses in the ratio of 3:2 with capitals of ` 1,00,000 and `80,000
respectively. They earned profits of `25,000 for the year before allowing:
a] Interest on Capitals @ 10% p.a.
b] Interest on drawings: Salim `1,000 & Kadar `800
c] Commission payable to Salim `2000 p.a.
d] Salary payable to Khadar `3000 p.a.
Prepare P & L Appropriation A/c for the year ending 31.03.2024
2] Sahana and Saniya are partners in the firm. Sahana’s drawings for the year 2023-
24 are given as under:
`4,000 on 01.06.2023
`6,000 on 30.09.2023
`2,000 on 30.11.2023
‘3000 On 01.01.2024
Calculate interest on Sahana’s drawings at 8% p.a. for the year ending 31.03.2024,
under product method
3] Murthy and Patil are partners in a firm sharing profits and losses in the ratio of
3:2. Murthy withdraws `4,000 quarterly.
i] At the beginning of each quarter
ii] At the end of each quarter
Calculate the interest on drawings at 9% p.a. for the year ending
31.03.2024, under product method.
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4] Calculate interest on drawings of Mr. Kamalakar @10% p.a if he withdrew ` 1,000
per month by the short cut method:
i] At the beginning of each month
ii] At the end of each month.
2] Roja and Usha were partners in a firm sharing profits and losses in the ratio of 3:2.
They admit Sahana for 1/6th share in profits and guaranteed that his share of
profits will not be less than `25,000. Total profits of the firm was `90,000.
Calculate share of profits for each partner when the Guarantee is given by Roja.
Prepare Profit and Loss Appropriation Account.
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PART - A
One Mark Questions:
I] Multiple Choice Questions:
1] At the time of admission of a new partner, general reserve appearing in the old
balance sheet is transferred to:
a] All Partners Capital Account
b] New Partner’s Capital Account
c] Old Partners Capital Account
d] Not to be transferred
3] On the admission of a new partner, increase in the value of asset is credited to:
a] Profit and Loss Adjustment(Revaluation) Account
b] Asset account
c] Old Partners Capital account
d] New partner’s capital account
5] A and B are partners with capitals of `45,000 each. C is admitted for 1/3rd share
and he brings in `60,000 as his capital. Hidden goodwill is,
a] `60,000
b] `30,000
c] `90,000
d] `45,000
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6] Which of the following are treated as reconstitution of a Partnership Firm?
a] Admission of a partner
b] Change in profit sharing ratio
c] Retirement of a partner
d] All of the above
8] Assets and Liabilities are recorded in Balance Sheet after the admission of a
partner at:
a] Original value
b] Revalued value
c] Realisable value
d] Book value as appeared in old balance sheet
10] In the absence of an agreement to the contrary, it is implied that old partners will
contribute to new partner’s share of profit in the ratio of:
a] Capital
b] Old profit sharing ratio
c] Sacrificing ratio
d] Equally
11] The balance of reserves and other accumulated profits at the time of admission of
a new partner are transferred to:
a] All partners in the new ratio
b] Old partners in the new ratio
c] Old partners in the old ratio
d] Old partners in the sacrificing ratio
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13] A and B are partners sharing profits in the ratio of 3:1. C is admitted into
partnership for 1/4th share. The sacrificing ratio of A and B will be:
a] Equal
b] 3:1
c] 2:1
d] 3:2
14] On the admission of new partner, increase in the value of assets is debited to:
a] Profit and Loss adjustment account
b] Assets account
c] Old partners capital account
d] New partner’s capital account
15] A and B are partners sharing profits in the ratio of 3:1. They admit C for
¼th share in the future profits. The new profit sharing ratio will be:
a] A 9 ,B 3 ,C 4
16 16 16
b] A 8 ,B 4 ,C4
16 16 16
c] A 10 , B 2 , C4
16 16 16
10
d] A 8 ,B 9
, C
16 16 16
16] X and Y share profits in the ratio of 3:2. Z was admitted as a partner who gets
1/5th share. New profit sharing ratio, if Z acquires 3/20 from X and 1/20 from Y
would be:
a] 9:7:4
b] 8:8:4
c] 6:10:4
d] 10:6:4
17] Asha and Nisha are partners sharing profit in the ratio of 2:1. Asha’s son Ashish
was admitted for 1/4 share of which 1/8 was gifted by Asha to her son. The
remaining was contributed by Nisha. Goodwill of the firm is valued at `40,000.
How much of the goodwill will be credited to the old partners capital account?
a] `2,500 each
b] `5,000 each
c] `20,000 each
d] ` 25,000 each.
18] If average profit is `15,000, Capital employed is `1,00,000 and Normal rate of
return is 10%, then the value of goodwill under capitalization method is;
a] `25,000
b] ` 50,000
c] ` 75,000
d] ` 10,000
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II. Fill in The Blanks:
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5] Why the NPSR is required at the time of admission of a partner?
6] What is Goodwill?
7] State any one factor affecting the value of goodwill.
8] What is normal profit?
9] State any one method of valuation of goodwill.
10] Give the formula for sacrifice ratio.
11] Which account is to be debited to record the increase in the value of an asset?
12] What is Revaluation Account?
13] Which account will be credited when there is a loss on revaluation?
14] Which account will be debited when the cash is brought by a new partner for his
share of goodwill?
15] What is hidden goodwill?
21] The traditional name of Revaluation A/c is ‘Profit and Loss Adjustment A/c’.
22] Goodwill is an intangible asset.
23] Decrease in the value of liability is debited to Revaluation Account.
24] Sacrifice ratio is required to distribute the cash brought by new partner among
old partners for his share of goodwill.
25] Share sacrificed = Old share – New share.
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Six Marks Problems on sacrifice ratio
1] Anil and Sunil are partners sharing profits and losses in the ratio of 4:3. They admit
Akash into partnership. The new profit sharing ratio is agreed at 7:4:3 respectively.
Find out the sacrifice ratio of old partners.
2] Sharat and Bharat are partners sharing profits and losses in the ratio of 3:2. They
admit Kamat into partnership and the new ratio was agreed to be 5:4:3. Calculate
the sacrifice ratio.
3] Avinash and Bhima are partners in a firm sharing profits in the ratio of 5:3. They
admit Chandru as a new partner for 1/7th share in the future profit. The new profit
sharing ratio will be 4:2:1. Calculate the sacrifice ratio of Avinash and Bhima.
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PART - D
12 Marks Problems :
I] When new partner brings cash for his share of goodwill
1] Maya and Chhaya are partners sharing profits and losses in the ratio of 2:1. Their
Balance Sheet as on 31.3.2024 was as follows:
Balance Sheet as on 31.03.2024
Liabilities ` Assets `
Creditors 20,000 Cash in Hand 8,000
Bills Payable 7,000 Stock 15,000
Reserve Fund 18,000 Debtors 20,000
Capitals: Machinery 30,000
Maya 60,000 Buildings 60,000
Chhaya 40,000 Investments 12,000
Total 145,000 Total 145,000
2] Rekha and Surekha are partners in a firm sharing profits and losses in the ratio
of 3:2. Their balance sheet is given below:
Balance Sheet as on 31.03.2024
Liabilities ` Assets `
Creditors 18,000 Cash at Bank 20,000
O/s Salary 12,000 Sundry debtors 25,000
Reserve Fund 10,000 Less: PDD 2,000 23,000
Capitals: Stock 7,000
Rekha 60,000 Furniture 25,000
Surekha 40,000 100,000 Buildings 50,000
P & L Account 15,000
Total 1,40,000 Total 1,40,000
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On 01.04.2024, they admit Chandrika as new partner into partnership on the
following terms:
a] She brings in `40,000 as capital and `20,000 towards goodwill for 1/4th
share in future profits. (as per AS26)
b] Depreciate Furniture by 10% and buildings are revalued at `45,000.
c] PDD is increased to `3,500.
d] Prepaid insurance `2,000.
Prepare:
i] Revaluation Account.
ii] Partners’ Capital Accounts &
iii] New Balance sheet as on 01.04.2024.
On 01.04.2024, Kaveri is admitted into the partnership for 1/6th share in future
profits on the following terms:
a] Kaveri pays `20,000 as capital. The Goodwill of the firm is valued at `24,000
(as per AS 26)
b] Buildings are appreciated by `5,000
c] Machinery is depreciated by 20%.
d] Provision for doubtful debts is increased by `1,000.
Prepare :
i] Revaluation Account
ii] Partners’ Capital Accounts &
iii] Balance Sheet of the firm after admission.
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4] Malaprabha, Ghataprabha and Hiranyakeshi are partners in a firm sharing
profits and losses in the ratio of 2:1:1. Their Balance Sheet as on 31.03.2024 was
as follows:
Balance Sheet as on 31.03.2024
Liabilities ` Assets `
Creditors 1,00,000 Cash at Bank 17,000
Reserve fund 32,000 Bills Receivable 19,000
Bank OD 8,000 Debtors 1,20,000
Capitals: Less: PDD 6,000 1,14,000
Malaprabha 40,000 Stock 80,000
Ghataprabha 50,000 Buildings 60,000
Hiranyakeshi 60,000
Total 2,90,000 Total 2,90,000
On 01.04.2024, they admit Krishna into the partnership for 1/5th share in future
profits on the following terms:
a] Krishna brings `50,000 as her capital.
b] Goodwill of the firm is valued at `60,000 (as per AS-26)
c] Reduce Stock by 10% and appreciate Buildings to `70,000.
d] Provision for doubtful debts decreased by `2,000.
Prepare :
i] Revaluation Account
ii] Partners’ Capital Accounts &.
iii] New Balance Sheet of the new firm.
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II. Capitals Adjustments Problems:
5] Mahesh and Suresh are equal partners in a firm. Their Balance Sheet as on
31.03.2024 stood as follows:
Balance Sheet as on 31.03.2024
Liabilities ` Assets `
Creditors 40,000 Stock 39,000
Bank Loan 8,000 Debtors 32,000
Less: PDD 2,000 30,000
Capitals: Land & Buildings 40,000
Mahesh 80,000 Machinery 36,000
Suresh 40,000 1,20,000 Motor Car 8,000
Cash at Bank 15,000
Total 1,68,000 Total 1,68,000
On 01.04.2024, Rakesh is admitted into partnership for 1/5th share in profits on
the following terms:
a] Rakesh should bring `26,000 as capital.
b] Goodwill of the firm is valued at `10,000 (as per AS 26)
c] Motor car and Machinery are to be depreciated by 20% and `3,800
respectively.
d] Prepaid rent `600.
e] Provision for doubtful debts is to be maintained at 10%.
f] The Capital Accounts of all the partners are to be adjusted in their new profit
sharing ratio 2:2:1, based on Chandra’s Capital after adjusting goodwill
(Adjustments are to be made in cash)
g] Sacrifice ratio of old partners is 1:1
Prepare :
i] Revaluation Account
ii] Partners’ Capital Account &
iii] New Balance Sheet of the firm
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PART - A
One Mark Questions:
I] Multiple Choice Questions:
1] Abhishek, Rajat and Vivek are partners sharing profits in the ratio of 5:3:2. If
Vivek retires, the New Profit Sharing Ratio between Abhishek and Rajat will be–
a] 3:2
h] 5:3
i] 5:2
j] 1:1
2] The old profit sharing ratio among Rajendra, Satish and Tejpal were 2:2:1. The
New Profit Sharing Ratio after Satish’s retirement is 3:2. The gaining ratio is;
a] 3:2
b] 2:1
b] 1:1
c] 2:2
3] Anand, Bahadur and Chander are partners sharing profits equally. On Chander’s
retirement, his share is acquired by Anand and Bahadur in the ratio of 3:2. The
New Profit Sharing Ratio between Anand and Bahadur will be:
a] 8:7
b] 4:5
c] 3:2
d] 2:3
4] In the absence of any information regarding the acquisition of share in the profit
of the retiring/deceased partner by the remaining partners, it is assumed that
they will acquire his/her share in:
a] Old Profit Sharing Ratio
b] New Profit Sharing Ratio
c] Equal Ratio
d] gain ratio
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5] On retirement/death of a partner, the remaining partner(s) who have gained due
to change in profit sharing ratio should compensate the
a] retiring partners only.
b] remaining partners (who have sacrificed) as well as retiring partners.
c] remaining partners only (who have sacrificed).
d] Remaining partners who have gained
7] Deceased partner’s share of profit in the accrued profit may be calculated on the
basis of
a] Last year’s profit
b] average profit of past few years
c] Sales
d] All the above
10] Amount payable to the Executors of the deceased partner is transferred to:
a] Executors loan account.
b] Executors account.
c] Remaining partners’ capital accounts.
d] deceased partner’s capital account.
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II. Fill in the blanks:
1] ratio is used to distribute accumulated profits and losses at the time
of retirement of a partner.
2] Profit or loss on revaluation is shared among the partners in ratio on
retirement of a partner.
3] New ratio – Old ratio =
4] Accumulated losses are transferred to the Capital Accounts of the partners at
the time of retirement in their ratio.
5] General reserve is to be transferred to accounts at the time of
retirement of a partner.
6] In the absence of any instruction, Retiring Partner’s Capital A/c is closed by
transferring its balance to A/c
7] ratio is used for adjustment of continuing partner’s capitals.
8] X, Y and Z are the partners sharing profits and losses in the ratio of 3:2:1.
If Y retires, the new ratio of X and Z will be .
9] Share gained is calculated by deducting share from the New Share.
10] The ratio in which the remaining partners share future profits after retirement is
called ratio.
11] The balance in the retiring partner’s loan A/c is shown on the side of
the B/S till the last installment is paid.
12] The amount paid to the Retiring Partner in excess of what is due to him is called
goodwill.
13] In the absence of any agreement as the disposal of amount due to retiring
partner, Sec. of the Indian Partnership Act, 1932 is applicable.
14] Executors account is generally prepared at the time of of a partner.
15] Accounting treatment at the time of retirement and death is .
16] The period from date of the last B/S and the date of the partner’s death is
called period.
17] account is debited for the transfer of share of accrued profit
of a deceased partner.
18] Amount payable to the Executors of the deceased partner is transferred to
account.
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III. Match the following type questions:
A B
a Gaining ratio i Outgoing partner receive 6%
interest
b Gained share ii Old share + acquired share
c New share iii Death of a partner
d Executor’s account iv New share – Old share
e Section 37 of partnership v Transfer to Executor’s account
act
f Amount due to deceased vi Required for contribution to
partner retiring partner share of goodwill
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18] Sec 37 of the Indian Partnership Act, 1932 states that the outgoing partner has
an option to receive either interest @ 6% p.a. till the date of payment or such
share of profits which has been earned with his money.
19] Deceased partner’s claim is transferred to his Executor’s Account
20] Deceased partners’ share of profit for the intervening period may be calculated on
the basis of last year’s profit/ average profit of past few years or on the basis of
sales.
21] Deceased partner may be paid in one lump sum or installments with interest.
22] Retirement normally takes place at the end of an accounting period, where as
death of a partner may occur at any time.
23] Amount payable to the Executors of the deceased partner is transferred to
executor’s loan account.
PART- B
TWO MARKS QUESTIONS:
1] Mention any two circumstances for retirement of a partner.
2] What is Gain Ratio?
3] State any two differences between sacrificing ratio and gaining ratio.
4] State any two purposes of calculating new profit sharing ratio.
5] How do you close the Revaluation Account on retirement of a partner?
6] Mention any two modes of disposal of amount due to Retiring Partner.
7] Pass the journal entry to close Retiring Partner’s Capital Account when the
payment is made immediately.
8] Give the journal entry to close Retiring partner capital Account when it is
transferred to Loan A/c.
9] Give the journal entry to close Revaluation Account when there is a profit.
10] Give the journal entry to close Revaluation Account when there is a loss.
11] Why do firms revalue the assets and liabilities on retirement?
12] Why retiring partner is entitled to a share of goodwill of the firm?
13] Pass the journal entry for Deceased Partner’s Share of profits for the intervening
period:
14] Give the meaning of accrued profit.
15] State any two differences between retirement and death of a partner.
16] Write any two ways of settlement of claims of the deceased partner.
17] Write the journal entry to close the deceased partner’s Capital Account.
18] Pass Journal entry for transfer of accrued profit of the deceased partner.
19] Write the journal entry for cash paid immediately to the executors of the deceased
partner.
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20] How do you close the executors account when the payment is not made
immediately?
21] A, B, C were partners in a firm sharing profits in the ratio of 5:4:1. The profit of
the firm for the year ending on 31-3-2024 was `12,000. B dies on 30-6-2024.
Calculate B’s share of profit from 1-4-2024 to 30-6-2024.
22] Give the Journal entry when retiring partner’s whole amount is treated as loan.
23] Pass the Journal entry when retiring partner is partly paid in cash and the
remaining amount is treated as loan
24] P, Q and R are partners in a firm sharing profits in the ratio of 3:2:1. R retires
and the balance in his Capital Account after making necessary adjustments
workout to be `60,000. P and Q agreed to pay him `75,000 in full settlement of
his claim. Find out the hidden goodwill.
PART - C
Six marks problems on calculation of Gain Ratio.
1] Ajay, Vijay and Sanjay are partners in a firm sharing profits and losses in the ratio
of 4:3:2. Ajay retires from the firm. Vijay and Sanjay agreed to share future profits
in the ratio of 5:3. Calculate gain ratio of Vijay and Sanjay.
2] Kishan, Ratan and Nayan are partners in a firm sharing profits and losses in the
ratio of 4:3:2. Nayan retires from the firm. Kishan and Ratan agreed to share
equally in future. Calculate gain ratio of Kishan and Ratan
3] Sharat, Bharat and Kamat are Partner’s sharing Profits and Losses in the ratio of
1:1:1. Bharat retires from the Firm. Sharat and Kamat decided to share the profit
in future in the ratio of 4:3. Calculate the Gain ratio.
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PART-C
1] Rajesh, Rakesh and Ramesh are the partners sharing profits and losses in the ratio
of 3:2:1, Their capitals as on 01.04.2024 were `1,00,000, `90,000 and `60,000
respectively. Rajesh died on 01-10-2024 and the Partnership Deed provided the
following:
2] Ram, Rahim and Rakshit are partner’s sharing profits and losses in the ratio of
2:2:1. Their capital balances on 01.04.2024 stood at `90,000, `60,000 and
`40,000 respectively. Mr. Rahim died on 01.07.2024 and partnership deed
provides the following:
a] Interest on capital at 10% p.a.
b] Salary to Rahim `2,000 per month.
c] Rahim’s share of Goodwill(as per AS26)
d] His share of profit up to the date of death on the basis of previous year’s
profit.
i) Total good will of the firm is `60,000
ii) Profit of the firm for the year 2023-24 is `40,000
You are required to ascertain the amount payable to Executors of Rahim by
preparing Rahim’s Capital Account.
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3] Dinesh, Mahesh and Ramesh are partners sharing profit and losses in the ratio of
4:3:3. Their capital balances on 01.04.2023 stood `1,00,000, `80,000 and
`50,000 respectively. Dinesh died on 31.12.2023. The partnerships deed provides
the followings:
a] Interest on capital at 12% p.a.
b] He had withdrawn `5,000 up to the date of death.
c] Dinesh’s share of goodwill `5,000 (as per AS26)
d] His share of profit up to the date of death on the basis of previous year
profits.
Previous year’s profits `20,000.
Prepare Dinesh’s Executors Account.
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PART-D
12 Marks Problems
1] Amar, Akbar and Anthoni were partners in a firm sharing profits in the ratio of
2 : 2 : 1. Their Balance Sheet as on March 31, 2024 was as follows:
Balance Sheet as on 31-03-2024
Amount Amount
Liabilities Assets
(`) (`)
Creditors 50,000 Cash 15,000
Reserves 20,000 Debtors 20,000
Amar’s Capital 80,000 Stock 40,000
Akbar’s Capital 60,000 Buildings 1,50,000
Anthoni’s Capital 75,000 Machinery 50,000
Patents 10,000
2,85,000 2,85,000
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2] Pradeep, Sudeep and Sundar were in partnership sharing profits and losses in
the proportion of 3:2:1. Their Balance Sheet was as follows:
Balance Sheet as on 31-03-2024
Amount Amount
Liabilities Assets
(`) (`)
Trade Creditors 10,000 Cash at Bank 12,500
Bills Payable 3,000 Debtors 15,000
O/S Expenses 5,000 Stock 12,000
General Reserve 12,000 Factory Premises 22,500
Capitals : Machinery 8,000
Pradeep 20,000 Loose Tools 5,000
Sudeep 15,000
Sundar 10,000 45,000
75,000 75,000
On April 1, 2024, Sudeep retires from the firm. The terms were:
a] Goodwill of the firm was valued at `6,000. (as per AS26)
b] O/s Expenses to be brought down to `3,750.
c] Machinery and Loose Tools are to be valued at 10% less than their
book value.
d] Factory premises are to be revalued at `25,550.
Prepare :
i] Revaluation Account
ii] Partners’ Capital Accounts and
iii] Balance Sheet of the firm after retirement of Sudeep.
II - PUC 27 | P a g e
3] Mahesh, Suresh and Sandesh were partners sharing profits in the ratio of
3:2:1 respectively. Their Balance sheet as on 31st March, 2024 was as
f
o Liabilities ` Assets `
Sundry Creditors 23,000 Building 45,000
l
Bills Payable 15,000 Machinery 25,000
l
Profit and Loss A/c 12,000 Stock 15,000
oCapitals Debtors 20,000
w Mahesh 40,000 Bills Receivable 10,000
s Suresh 30,000 Cash 25,000
: Sandesh 20,000
Total 1,40,000 Total 1,40,000
i] Revaluation Account.
ii] All Partners Capital A/c.
iii} New Balance Sheet after retirement of Suresh
II - PUC 28 | P a g e