#### Accounts of Partnership Firms-Fundamentals Three Marks Questions

12th Standard EM

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Accountancy

Time : 00:45:00 Hrs
Total Marks : 30
10 x 3 = 30
1. Arul 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 3,000
June 1 3,000
September 1 3,000
December 1 3,000

Calculate the amount of interest on drawings.

2. Syed, Samuel and Sudhakar are partners in a firm sharing profits and losses equally. As per the terms of the partnership deed, Samuel is allowed a monthly salary of Rs.2,000 and Sudhakar is allowed a commission of Rs.6,000 per annum for their contribution to the business of the firm. You are required to pass the necessary journal entry. Assume that their capitals are fluctuating.

3. Arulappan and Nallasamy are partners in a firm sharing profits and losses in the ratio of 4:1. On 1st January 2018, their capitals were Rs.20,000 and Rs.10,000 respectively. The partnership deed specifies the following:
(a) Interest on capital is to be allowed at 5% per annum.
(b) Interest on drawings charged to Arulappan and Nallasamy are Rs.200 and Rs.300 respectively.
(c) The net profit of the firm before considering interest on capital and interest on drawings
amounted to Rs.18,000.
Give necessary journal entries and prepare Profit and loss appropriation account for the year ending 31st December 2018. Assume that the capitals are fluctuating.

4. The capital account of Begum and Fatima on 1st January, 2018 showed a balance of Rs.50,000 and Rs.40,000 respectively. On 1st October, 2018, Begum introduced an additional capital of Rs.10,000 and on 1st May, 2018 Fatima introduced an additional capital of Rs.9,000. Calculate interest on capital at 4% p.a. for the year ending 31st December, 2018.

5. Anand and Narayanan are partners in a firm sharing profits and losses in the ratio of 5:3. On 1st January 2018, their capitals were Rs.50,000 and Rs.30,000 respectively. The partnership deed specifies the following:
(a) Interest on capital is to be allowed at 6% per annum.
(b) Interest on drawings charged to Anand and Narayanan are Rs.1,000 and Rs.800 respectively.
(c) The net profit of the firm before considering interest on capital and interest on drawings amounted to  Rs.35,000.
Give necessary journal entries and prepare profit and loss appropriation account as on 31st December 2018. Assume that the capitals are fluctuating.

6. From the following balance sheets of Subha and Sudha who share profits and losses in 2:3, calculate interest on capital at 5% p.a. for the year ending 31st December, 20

Balance sheet as on 31st December, 2018
Liabilities Rs. Rs. Assets Rs.
Capital accounts     Fixed assets 70,000
Subha 40,000   Current assets 60,000
Sudha 60,000 1,00,000
Current liabilities   30,000
1,30,000   1,30,000

Drawings of Subha and Sudha during the year were Rs.8,000 and Rs.10,000 respectively. Profit earned during the year was Rs.30,000

7. Ahamad and Basheer contribute Rs.60,000 and Rs.40,000 respectively as capital. Their respective share of profit is 2:1 and the profit before interest on capital for the year is Rs.5,000. Compute the amount of interest on capital in each of the following situations:
(i) if the partnership deed is silent as to the interest on capital
(ii) if interest on capital @ 4% is allowed as per the partnership deed
(iii) if the partnership deed allows interest on capital @ 6% per annum.

8. Explain the procedure for preparation of final accounts of a partnership firm.

9. What is Fluctuating capital method?

10. The firm of A and B earned a profit of Rs.2,75,000 during the year ending on 31st March, 2015. They have decided to donate 10% of this profit to an NGO working for senior citizens. Pass necessary journal entry for the distribution of profits. Identify the values shown by the firm in donating a part of profit of NGO.