A, B, C and D were partners in a firm sharing profits in the ratio of 4:3:2:1. On 1st January, 2015, they admitted E as a new partner for 1/10th share in the profits. E brought RS.10,000 for his share of goodwill premium which was correctly recorded in the books by the accountant. The accountant showed goodwill at RS.1,00,000 in the books. Was the accountant correct in doing so? Give reason in support of your answer.

Angad, Raman and Harshit are partners in a firm.  They decided to dissolve their firm.  Pass necessary journal entries for the following after various assets (other than cash and bank) and their party liabilities have been transferred to Realisation Account.

(i) There was a stock of Rs. 90,000.  Raman took over 50% of the stock at 10% discount and remaining stock was sold at 40% profit on book value.

(ii) Profit and Loss Account was showing a credit balance of Rs. 15,000 which distributed among the partners.

(iii) A machinery which was not recorded in the books was sold for Rs. 2,000.

(iv) Angad was paid only Rs. 5,000 (in full settlement) for his loan to the firm which amounted to Rs. 5,500.

(v) Realisation expenses amount to Rs. 5,000 paid by Harshit.

(vi) There were 100 shares of Rs. 10 each in D.C.M.  Ltd. acquired at cost of Rs.1,200 which had been written off completely from the books.  These shares are valued at Rs. 9 each and divided among the partners in their profit sharing ratio.

X, Y and Z were sharing profits and losses in the ratio of 5:3:2. They decided to share future profits and losses in the ratio of 2:3:5 with effect from 1.4.2007. They decided to record the effect of the following, without effecting their book values:

(i) Profit and Loss Account (Cr.)          Rs.24,000

(ii) Advertisement Suspense Account  Rs.12,000

     Pass the necessary adjusting entry.       

Ram and Mohan are partners in a firm.  The admitted Rakhi as partners without capital for 1/3rd share in profits of the firm.  She is blind by birth but having good management qualities.  The new partnership agreement provides for the following:
(i) 10% of the trading profit will be donated to Prime Minister's Relief Fund.
(ii) 5% of the trading profit will be donated to the National Blind Relief Fund.
(iii) Products will be sold at a discount of 15% on Maximum Retail Price to the people living below poverty line.
(iv) New retail shops will be opened in the Naxal affected arreas of the country.
(v) New jobs of sales persons will be reserved for the girls belonging to scheduled tribes.
The Trading profit of the firm for the year ended 31.03.2012 was Rs. 10,00,000 identify any four values considered by Ram, Mohan and Rakhi while preparing the new partnership deed and prepare the Profit and Loss Appropriation Account of Ram, Mohan and Rakhi for the year ended 31.03.2012.

Asha, Nisha and jagat are partners in a firm.  On 1st April, 2011 the balance in their capital accounts stood at Rs. 8,00,000 and Rs. 4,00,000 respectively.  They shared profits in the profits in the proportion of 3 : 2 : 1.
Partners are entitled to interest on capital @ 6 % per annum and salary to Asha @ Rs.4,000 per month and a commission of Rs. 6,000 per quater to jagat as per the provisions of the partnership deed.
Asha's share of profit excluding interest on capital is guaranteed at Rs. 60,000 p.a. Jagat;s share of profit including interest on capital but excluding salary is guaranteed at Rs. 60,000 p.a. Jagat's share of profit including interest on capital but excluding salary is guaranteed at Rs. 50,000 p.a.
Any deficiency arising on the account shall be met by nisha.  The profit of the firm for the year ended 31st March, 2012 amounted to Rs. 3,00,000.
Prepare 'Profit and Loss Appropriation Account' for the year ended 31st March. 2012. 

A, B & C were partners in a firm.  On 1st April 2012, their capitals stood at Rs. 5,00,000; Rs. 2,50,000 and Rs. 2,50,000 respectively.  As per the provisions of the partnership deed :
(i) C was entitled for a salary of Rs. 5,000 per month.
(ii) A's was entitled for a commission of Rs. 80,000 p.a.
(iii) Partners were entitled to interest on capital at 6% p.a.
(iv) Partners will share profits in the ratio of their capitals.
Net profit for the year ended on 31.03.2013 was Rs. 3,00,000 which was divided equally, without providing for the above provisions.  Showing your workings clearly, pass necessary adjustment entry for the above.

K and P were partners in a firm sharing profits in 4 : 3 ratio.  Their capitals on 1.4.2009 were : K Rs. 80,000 and P Rs. 60,000.  The partnership deed provided as follows :
(i) Interest on capital and drawing will be allowed and charged @ 12% p.a. and 10% p.a. respectively.
(ii) K and P will be entitled to get monthly salary of Rs. 2,00 and Rs 3,000 respectively.
The profits for the year ended 31.3.2010 were Rs.  1,00,300.  The drawings of K and P were Rs. 40,000 and Rs. 50,000 respectively. Interest on K's drawings was Rs. 2,000 and on P's drawings Rs. 2,500.
Prepare Profit and Loss Appropriation Account of K and P for the year ended 31.3.2010 assuming that the capitals of the partners were fluctuating.

Mohan and Mahesh were partners in a firm sharing profits in the ratio of 3:2 on 1st April, 2012 they admitted Nusrat as a partner in the firm. The balance sheet of Mohan and Mahesh on that date was as under
                                              Balance Sheet
                                          as at 1st April, 2012

It was agreed that
(i) The value of building and stock be appreciated to RS3,80,000 and RS.1,60,000 respectively.
(ii) The liabilities of workmen's compensation fund was determined at RS.2,30,000.
(iii) Nusrat brought in her share of goodwill RS.1,00,000 in cash.
(iv) Nusrat was to bring further cash as would make her capital equal to 20% of the combined capital of Mohan and Mahesh after above revaluation and adjustments are carried out.
(v) The future profit sharing ratio will be Mohan 2/5th, Nusrat 1/5th.
Prepare revaluation account, partners, capital accounts and balance sheet of the new firm. Also, show clearly the calculation of capital brought by Nusrat.

The balance sheet of Sindhu, Rahul and Kamlesh, who were sharing profits in the ratio of 3:3:4 respectively, as at 31st March, 2015 was as follows

Sindhu died on 31st July, 2015.The partnership deed provided for the following on the death of a partner.
(i)Goodwill of the firm be valued at two years, purchase of average profits for the last three years which were Rs.80,000.
(ii)Sindhu's share of profit till the date of his death was to be calculated on the basis of sales.Sales for the year ended 31st March, 2015 amounted to Rs.8,00,000 and that from 1st April to 31st july, 2015, Rs.3,00,000.The profit for the year ended 31st March, 2015 was Rs.2,00,000
(iii)Interest on capital was to be provided @ 6% per annum.
(iv)According to Sindhu's will, the executors should donate his share to 'Matri Chaya - an orphanage for the question.

Ram, Rahim and Rehman were partners in a firm sharing profits in the ratio of 4 : 1 : 5.  On 28th February, 2010 the firm was dissolved on the date of dissolution, the Balance sheet of the firm was as follows :

Assets realised as follows : Debtors Rs. 2,70,000; Stock at 15% less; Furniture was taken over by Ram for Rs. 79,000.  Building was sold for Rs.29,00,000. Rehman took over 50% of the Machinery at 5% less than the book value.  Bank loan was paid with interest of Rs. 9,500. Creditors allowed a discount of 5%.  Expenses of dissolution Rs. 7,000 were paid by Rehman.  Remaining machinery was sold at 50% profit.

Prepare the Realisation Account, Partners' Capital Account and Bank Account.

A and C are partners with fixed capitals of the Rs.2,00,000, Rs. 1,50,000 and Rs.1,00,000 respectively. THe balance of current accounts on 1st January, 2004 were A Rs.10,000 (Cr.) and B Rs.4,000 (Cr.) and C Rs.3,000 (Dr.). A gave a loan to the firm of Rs.25,000 on 1st July, 2004. THe Partnership deed provided for the following:-
(i) Interest on Capital at 6%.
(ii) Interest on drawings at 9%. Each partner drew Rs.12,000 on 1st July, 2004.
(iii) Rs.25,000 is to be transferred in a Reserve Account.
(iv) Profit sharing ratio is 5 : 3 : 2 upto Rs.80,000 and above Rs.80,000 equally. Net Profit of the firm before above adjustment was Rs.1,98,360.
From the above information prepare Profit and Loss Appropriation Account, Capital and Current Accounts of the partners.

A,B and C are sharing profits and losses in the ratio of 5:3:2 They decide to share future profits and losses in the ratio 2:3:5 with effect from 1st April,2015.They also decide to record the effect of the following without affecting their book figures by passing a single adjusting entry.

Anju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 28.2.2015, their Balance Sheet was a follow :

On this date, the firm was dissolved.  Anju was appointed to realise the assets.  Anju was to receive 5% Commission on the sale of assets (except cash) and was to bear all expenses of realisation.

Anju realised the assets as follows : Debtors Rs. 60,000, Stock Rs. 35,500, Investment Rs. 16,000, Plant 90% of the book value.  Expenses of relisation amounted to Rs. 7,500.  Commission received in advance was returned to the customers after deducting Rs. 3,000.

Firm has to pay Rs. 8,500 for Outstanding salary, not provided for earlier.  Compensation paid to employees amounted to Rs. 17,000.  This liability was not provided for in the above Balance Sheet.  Rs. 20,000 had to be paid for  provident fund.

Prepare Realisation Account, Capital Accounts of Partners and Bank Account.