Accounts of Partnership Firms-Fundamentals Model Question Paper

12th Standard EM

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Accountancy

Time : 02:00:00 Hrs
Total Marks : 50
    5 x 1 = 5
  1. In the absence of a partnership deed, profits of the firm will be shared by the partners in

    (a)

    Equal ratio

    (b)

    Capital ratio

    (c)

    Both (a) and (b)

    (d)

    None of these

  2. When a partner withdraws regularly a fixed sum of money at the middle of every month, period for which interest is to be calculated on the drawings on an average is

    (a)

    5.5 months

    (b)

    6 months

    (c)

    12 months

    (d)

    6.5 months

  3. In the absence of an agreement, partners are entitled to

    (a)

    Salary

    (b)

    Commission

    (c)

    Interest on loan

    (d)

    Interest on capital

  4. Profit after interest on drawings, interest on capital and remuneration is Rs.10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission.

    (a)

    Rs.50

    (b)

    Rs.150

    (c)

    Rs.550

    (d)

    Rs.500

  5. In India, partnership firms are governed by the Indian partnership Act.

    (a)

    1932

    (b)

    1930

    (c)

    1992

    (d)

    1986

  6. 3 x 2 = 6
  7. Assertion (A): Partnership firm is a form of organisation where two or more persons carry on some business activity on the basis of agreement among them.
    Reason (R): The profit or loss arising from the partnership business is shared by the partners in the agreed ratio.
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A).
    (c) (A) is true, but (R) is false
    (d) (A) is false, but (R) is true

  8. Assertion (A): A partnership deed covers all matters relating to mutual relationship among the partners.
    Reason (R): But, in the absence of agreement, the following provisions of the Indian Partnership Act, 1936 shall apply for accounting purposes.
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A).
    (c) (A) is true, but (R) is false
    (d) (A) is false, but (R) is true

  9. Assertion (A): Drawings is the amount withdrawn in cash or in kind, for personal purposes.
    Reason (R): A Drawings Account is opened in the name of each partner and the drawings are debited to this account.
    (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
    (b) Both (A) and (R) are true and (R) is not the correct explanation of (A).
    (c) (A) is true, but (R) is false
    (d) (A) is false, but (R) is true

  10. 1 x 2 = 2
  11. (a) Remuneration to partners
    (b) Fixed capital method
    (c) Interest on capital
    (d) Interest on drawings

  12. 2 x 1 = 2
  13. (i) The sole proprietorship has its limitations such as limited capital, limited managerial ability and limited risk - bearing capacity.
    (ii) The sole proprietorship has its limitations such as Unlimited capital, Unlimited managerial ability and Unlimited risk - bearing capacity
    (iii)The Partnership has its limitations such as Unlimited capital, Unlimited managerial ability and Unlimited risk - bearing capacity
    (a) (i) is correct
    (b) (i) and (ii) are correct
    (c) (ii) and (iii) are correct
    (d) (i), (ii) and (iii) are correct

    ()

    (a) (i) is correct

  14. (i) Current accounts of the partners should be opened when the capitals are Either fixed or fluctuating.
    (ii) Goodwill is the present value of a firm's anticipated excess earnings in future and the efforts had already made in the past.
    (iii) Any partner who investments' in the business but does not take active part in the business is Nominal partner'
    (a) (ii) and (iii) are correct
    (b) (i) and (ii) are correct
    (c) (ii) is correct
    (d) (i), (ii) and (iii) are correct

    ()

    (c) (ii) is correct

  15. 5 x 2 = 10
  16. Mannan and Ramesh share profits and losses in the ratio of 3:1. The capital on 1st April 2017 was Rs.80,000 for Mannan and Rs.60,000 for Ramesh and their current accounts show a credit balance of Rs.10,000 and Rs.5,000 respectively. Calculate interest on capital at 5% p.a. for the year ending 31st March 2018 and show the journal entries.

  17. Velan is a partner who withdrew Rs.20,000 on 1st April 2018. Interest on drawings is charged at 10% per annum. Calculate interest on drawings on 31st December 2018 and pass journal entries by assuming fluctuating capital method.

  18. Define partnership.

  19. What is meant by fixed capital method?

  20. Why is Profit and loss appropriation account prepared?

  21. 5 x 3 = 15
  22. From the following balance sheets of Subha and Sudha who share profits and losses equally, calculate interest on capital at 6% p.a. for the year ending 31st December 2017.

    Balance sheet as on 31st December 2017
    Liabilities Rs. Assets Rs.
    Capital accounts:   Fixed assets 30,000
    Subha 15,000 Current assets 20,000
    Sudha 20,000    
      15,000    
      50,000   50,000

    Drawings of Subha and Sudha during the year were Rs.2,500 and Rs.3,500 respectively. Profit earned during the year was Rs.15,000.

  23. Arun is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 12% p.a. During the year ended 31st December 2018 he drew as follows:

    Date Rs.
    March 1 6,000
    June 1 4,000
    September 1 5,000
    December 1 2,000

    Calculate the amount of interest on drawings.

  24. Anbu is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 12% p.a. During the year ended 31st December 2018 he drew as follows:

    Date Rs
    March 1 6,000
    June 1 4,000
    September 1 5,000
    December 1 2,000

    Calculate the amount of interest on drawings by using product method. 

  25. State any six contents of a partnership deed.

  26. State the differences between fixed capital method and fluctuating capital method.

  27. 2 x 5 = 10
  28. Bragathish and Naresh are partners who maintain their capital accounts under fixed capital method. From the following particulars, prepare capital accounts of partners.
     

    Particulars Bragathish
    Rs.

    Naresh
    Rs.

    Capital on 1st April 2018 4,00,000 6,00,000
    Current account on 1st April 2018 20,000(Cr.) 15,000(Dr.)
    Additional capital introduced during the 50,000 Nil
    Drawings made during the year 45,000 60,000
    Interest on drawings 2,000 3,000
    Share of profit for the year 80,000 1,20,000
    Interest on capital 20,000 30,000
    Commission 17,000 Nil
    Salary Nil 38,000
  29. Antony and Ranjith started a business on 1st April 2018 with capitals of Rs.4,00,000 and Rs.3,00,000 respectively. According to the Partnership Deed, Antony is to get salary of Rs.90,000 per annum, Ranjith is to get 25% commission on profit after allowing salary to Antony and interest on capital @ 5% p.a. but after charging such commission. Profit-sharing ratio between the two partners is 1:1. During the year, the firm earned a profit of Rs.3,65,000.
    Prepare profit and loss appropriation account. The firm closes its accounts on 31st March every year.

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