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Worksheet 6

The document outlines various partnership scenarios involving profit sharing, capital contributions, and adjustments for salaries, commissions, and interest on capital and drawings. It includes specific financial data for multiple partnerships and requests the preparation of Profit and Loss Appropriation Accounts and Partner's Current Accounts. Each scenario provides a unique set of conditions and financial figures for calculation and adjustment purposes.

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10 views2 pages

Worksheet 6

The document outlines various partnership scenarios involving profit sharing, capital contributions, and adjustments for salaries, commissions, and interest on capital and drawings. It includes specific financial data for multiple partnerships and requests the preparation of Profit and Loss Appropriation Accounts and Partner's Current Accounts. Each scenario provides a unique set of conditions and financial figures for calculation and adjustment purposes.

Uploaded by

jackspizzacafe42
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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IT’S A COMMERCE THING PH-NO: 9781528055,

6239268016

FUNDAMENTALS OF PARTNERSHIP

WORKSHEET 6
1. A,B and C were in partnership sharing profits in the ratio of 1:2:3. Their fixed
capitals on 1st April,2021 were A ₹ 3,00,000; B ₹ 4,50,000 and C ₹ 10,00,000.
Their partnership deed provided for the following:
a) A provides his personal office to the firm for business use charging
yearly rent of ₹ 1,50,000.
b) Interest on capital @ 8% p.a. and interest on drawings @ 10% p.a.
c) A was allowed salary @ ₹ 10,000 per month.
d) B was allowed a commission of 10% of net profit as shown by Profit &
loss Account, after charging such commission.
e) C was guaranteed a profit of ₹ 3,00,000 after making all the
adjustments.
The net profit of the firm for the year ended 31 st March, 2022 was ₹
10,30,000 before making above adjustments.
You are informed that A has withdrawn ₹ 5,000 at the beginning of
each month, B has withdrawn ₹ 5,000 at the end of each month and C
has withdrawn ₹ 24,000 at the beginning of each quarter.
Prepare Profit and Loss appropriation Account and Partner’s Current
account.
2. Asif and Ravi are the partners in a firm sharing profits and losses in the ratio
of 3:2. Their fixed capitals as on 1st April, 2016 were ₹ 6,00,000 and ₹
4,00,000 respectively.
a) Partners are to be allowed interest on their capitals @ 10% p.a.
b) They are to be charges interest on drawings @ 4% p.a.
c) Asif is entitled to a salary of ₹ 2,000 per month
d) Ravi is entitled to a commission of 5 % of the correct net profit of the
firm before charging such commission.
e) Asif is entitled to a rent of ₹ 3,000 per month for the use of his
premises by the firm
The net profit of the firm for the year ended 31 st March 2017 before
providing for any of the above clauses was ₹ 4,00,000.
Both the partners withdrew ₹ 5,000 at the beginning of every month for
the entire year.
You are required to prepare a Profit and Loss Appropriation Account for
the year ended 31st March, 2017.
3. Shankar and Manu are partners in a firm. On 1 st April, 2014, their fixed capital
accounts showed a balance if ₹ 2,00,000 and ₹ 4,00,000 respectively.

1
IT’S A COMMERCE THING PH-NO: 9781528055,
6239268016
On this date, their current account balance were ₹ 50,000 and ₹ 1,00,000
respectively.
On 1st January, 2015 Shankar introduced additional capital of ₹ 2,00,000 while
Many gave a loan of ₹ 1,50,000 to the firm.
The clauses of their partnership deed provided for:
a) Interest on capital to be allowed at the rate of 10% p.a.
b) Interest on drawings to be charged at the rate of 12% p.a.
c) Profits to be shared by them in the ratio of 3:2
d) 10% of the correct net profit to be transferred to General reserve.
During the financial year 2014-15, both partners withdrew ₹ 6,000 each at
the beginning of every quarter.
The net profit of the firm, before any interest for the financial year was ₹
5,00,000.
You are required to prepare for the year: P and L appropriation account,
Partner’s fixed capital account and partners Current .
4. A and B are partners in a firm sharing profits and losses in the ratio of 3:2.
The balance in their capital and current account as on 1-4-2021 were as
under:
A B
Capital account 40,000 20,000
Current Account 16,000 12,000
The partnership deed provided that A is to be paid salary @ 500 p.m.
whereas B is to get commission of ₹ 4,000 for the year
Interest on capital is to be allowed @ 6% p.a. the drawings of A and B for the
year were ₹ 5,000 and ₹ 2,000, respectively. Interest on drawings for A and B
works out at ₹ 225 and ₹ 75 respectively. The net profit of the firm for the
year ended 31st March, 2022 before making these adjustments was ₹ 35,700.
Prepare the profit and loss appropriation account and the partner’s capital
and partner’s current account.
5. Alex, John and Sam are partners in a firm. Their capital accounts on 1 st
April,2021, stood at ₹ 1,00,000, ₹ 80,000 and ₹ 60,000 respectively.
Each partner withdrew ₹ 5,000 during the financial year 2021-22
As Per the provisions of their partnership deed:
a) John was entitled to a salary of ₹ 1,000 per month
b) Interest on capital was to be allowed @ 10% per annum.
c) Interest on drawings was to be charged @ 4% per annum.
d) Profits and losses were to be shared in the ration of their capitals.
The net profit of ₹ 75,000 for the year ended 31 st March 2022, was
divided equally amongst the partners without providing for the terms
of deed.
You are required to pass a Single Adjusting Journal Entry to rectify the error.

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