ACCOUNTING FOR PARTNERSHIP FIRMS -
1 In a partnership, partners are charged interest on drawings @15% p.a. During the year ended 31st March, 2018, a partner drew as follows.
2 A and B are partners sharing profits equally. A drew regularly Rs 4,000 at the end of every month for six months ended 30th September, 2018. Calculate interest on drawings @5% p.a. for a period of six months. (IOD `250)
3 Ravi and Mohsin are partners in a business. Their capitals at the end of the year were Rs 24,000 and Rs 18,000 respectively. During the year Ravi’s drawings and Mohsin’s drawings were Rs 4,000 and Rs 6,000 respectively. Profit (before charging interest on capital) during the year was Rs 16,000. Calculate interest on capital @5% p.a. for the year ended 31st March, 2018. (IOC : Ravi Rs 1,000; Mohsin Rs 800)
4 On 31st March, 2014, balances in the Capital Accounts of E, M and A after making adjustments for profits and drawings were Rs 1,60,000, Rs 1,20,000 and Rs 80,000 respectively. Subsequently, it was discovered that the interest on capital and drawings had been omitted.
(i) The profit for the year ended 31st March, 2014 was Rs 40,000.
(ii)During the year E and M each withdrew a total sum of Rs 24,000 in equal instalments in the beginning of each month and A withdrew a total sum of Rs 48,000 in equal instalments at the end of each month.
(iii)The interest on drawings was to be charged @5% p.a. and interest on capital was to be allowed @10%.
(iv)The profit sharing ratio among the partners was 2:1:1
Showing your working notes clearly, pass the necessary rectifying entry.
5 The capitals of P, Q and R as on 31st March, 2018 amounted to Rs 1,50,000, Rs 5,50,000 and Rs 11,00,000 respectively. The profits amounting to Rs 3,00,000 for the year 2017-18 were distributed in the ratio of 4:1:1 after allowing interest on capital @10% p.a. During the year, each partner withdrew `50,000 per month in the beginning of each month. The Partnership Deed was silent as to profit sharing ratio and interest on drawings but provided for interest on capital @12% p.a. Showing your working clearly, pass the necessary adjustment entry to rectify the above error.
6 X, Y and z are partners in a firm sharing profits & losses in the ratio of 4:2:1. It is provided that Z’s share in profit would not be less than Rs 37,500. The profit for the year ended 31st March, 2018 amounted to Rs 1,57,500. Prepare Profit & Loss Appropriation Account.
(Ans: Share of profit of X Rs 80,000; Y Rs 40,000 and Z Rs 37,500)
7 P and Q were partners in a firm sharing profits in the ratio of 5:3. On 1st April, 2014 they admitted R as a new partner for 1/8th share in the profits with a guaranteed profit of `75,000. The new profit sharing ratio between P and Q remain the same but they agreed to bear any deficiency on account of guarantee to R in the ratio of 3:2. The profit of the firm for the year ended 31st March, 2015 was Rs 4,00,000. Prepare Profit & Loss Appropriation Account of P, Q and R for the year ended 31st March, 2015.
Please click on below link to download CBSE Class 12 Accountancy Fundamentals Partnership Worksheet Set B