A, B and C were partners in a firm having capitals of Rs. 60,000; Rs. 60,000 and Rs. 80,000 respectively.  Their Current Account balances were A : Rs, 10,000; B : Rs 5,000 and C : Rs, 2,000 (Dr.). According to the partnership deed the partners were entitled to interest on capital @ 50% p.a. C being the working partner was also entitled to a salary of Rs. 6,000 p.a.

The profits were to be divided as follows:

(a) The first Rs. 20,000 in proportion to their capitals.

(b) Next Rs. 30,000 in the ratio of 5 : 3 : 2.

(c) Remaining profits to be shared equally.

The firm made a profit of Rs. 1,56,000 before charging any of the above items.  Prepare the Profit & Loss Appropriation Account and pass necessary journal entry for appropriation of profit.

Arun and Arora were partners in a firm sharing profits in the ratio of 5 : 3.  Their fixed capitals as on 1.4.2010 were : Arun Rs. 60,000 and Arora Rs. 80,000.  They agreed to allow interest on capital @ 12% p.a. and to charge on drawings @ 15% p.a.  The profit of the firm for the year ended 31.3.2011 before all above adjustment were Rs. 12,600.  The drawings made by Arun were Rs. 2,000 and by Arora Rs. 4,000 during the year.  Prepare Profit and Loss Appropriation Account  of Arun and Arora.  Show your calculations clearly.  The interest on capital will b allowed  even if the firm incurs loss.

Ram and Shyam were partners in a firm.  After crediting the profits of the year Rs. 2,00,000  in their Capital Accounts, the balances of their capital were Ram Rs. 4,00,000 and Shyam Rs. 3,00,000.  During the year Ram withdrew Rs. 80,000 and Shyam Rs. 1,00,000.  It was found that interest on Capital and Drawings @ 10% p.a. as provided in the partnership agreement had not been allowed and charged to the partners' capital accounts.  Pass the necessary adjustment entry.

J and K are partners in a firm. Their capitals are J Rs.3,00,000 and K Rs.2,00,000. Assuming that the normal rate of return is 20%, calculate the value of goodwill of the firm:

(i) By capitalisation method and

(ii) By super profit method if the goodwill is valued at 2 years' purchase of super profit.

Prem, Param and Priya were partners in a firm.  Their fixed capitals were Prem Rs.  2,00,000; Param Rs. 3,00,000 and Priya Rs. 5,00,000.  They were sharing profits in the ratio of their capitals.  The firm was engaged in the sale of ready-to-eat food packets at three different locations in the city,each being managed by Prem and Priya.  Prem requested Param and Priya for a higher share in the profits of the firm which Param and Priya accepted.  It was decided that the new profit sharing ratio will be 2 : 1 : 2 and its effect will be introduced retrospectively for the last four years.  The profits of the last four years were Rs. 2,00,000; Rs. 3,50,000;  Rs. 4,75,000 and Rs. 5,25,000 respectively.  Showing your calculations clearly, pass a necessary adjustment entry to the new agreement between Prem, Param and Priyam.

Pappu and Munna are partners in a  firm sharing profits in the ratio of 3 : 2.  The partnership deed provided that Pappu was to be paid salary of Rs. 2,500 per month and Munna was to get a commission of Rs. 10,000 per annum.  Interest on capital was to be allowed @ 5% per annum and interest on drawings was to charged @ 6% per annum.  Interest on Pappu's drawings was Rs. 1,250 and on Munna's drawings Rs. 425.  Capital of the partners were Rs. 2,00,000 and Rs. 1,50,000 respectively, and were fixed.  The firm earned a profit of Rs. 90,575 for the year ended on 31.3.2004.  Prepare Profit and Loss Appropriation Account of the firm.

M is a partner in a firm.He withdraws the following amounts during the year 2014-15

Interest on drawings is to be charged @71/2%per annum.
Calculate the amount of Interest to be charged on M's drawings for the year 2014-15

P, Q, R and S are partners in a firm sharing profits as 4 : 2 : 1 respectively.They earned a profit of Rs.1,80,000 for the year ended 31st March, 2015.As per partnership deed, They are to charge a commission @ 20% of the profit after charging such commission which they will share as 2 : 3 : 2 : 3.You are required to show appropriation of profits among the partners.

P, Q and R are in a partnership and as at 1st April, 2014 their respective capitals were Rs.40,000, Rs.30,000 and Rs.30,000.Q is entitled to a salary of Rs.6,000 and R Rs.4,000 per annum payable before division of profits.Interest is allowed on capital @5% per annum and is not charged on drawings.of the net divisible profits, P is entitled to 50% of the first Rs.10,000, Q to 30% and R to 20% rest of the profits are shared equally the profits for the year ended 31st March, 2015, after debiting partners' salaries but before charging interest on capital were Rs.21,000 and The partners had drawn Rs.10,0000 each on account of salaries, interest and profit.prepare profit and loss appropriation account showing the distribution of profit.

Calculate value of goodwill on the basis of three years' purchases of average profit of the preceding five years which were as follows

A firm earns rs.6,00,000 as its annual profits, the rate of return being 12%.Assets and liabilities of the firm amounted to rs.72,00,000 and Rs.24,00,000 respectively.calculate the value of goodwill by capitalisation method.

A firm profit of Rs.10,00,000. Normal rate of return in a similar type of business is 10%.The value of total assets (excluding goodwill) and total outsider' Liabilities as on the date of goodwill are Rs.1,10,000 and rs.28,00,000 respectively.calculate value of goodwill according to capitalisation of super profit method as well as capitalisation of average profit method.

What is the status of partnership from an accounting viewpoint?

List the items that may appear on the debit side and credit siode of a partner's fluctuating capital account.

Give two points of difference between Profit and Loss and Profit and loss appropriation A/c.