CBSE 12th Accountancy - Accounting for Partnership Firms - Fundamentals Model Question Paper | QB365

12th Standard CBSE Syllabus & Materials

12th Standard CBSE

CBSE 12th Economics Government Budget and the Economy Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Interface Python with MySQL - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Database Concept - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Data Communication - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Data Structures - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Functions - New Previous year Question Papers Study Material - QB365 Set A

CBSE 12th Accountancy - Accounting for Partnership Firms - Fundamentals Model Question Paper

Published on: 20/11/2019

Accounting for Partnership Firms - Fundamentals

Download CBSE Class 12th Standard CBSE Accountancy question papers, sample papers, important questions, and previous year solved papers in PDF format. Get free study materials, NCERT solutions, and exam preparation resources for Class 12th Standard CBSE Accountancy

Questions + Answers key

Take MCQ Accountancy Test

QB365 Student Learing Managemnet System

Std: 12th Standard CBSE - Accountancy

chapter: - Model Question paper

Visit QB365-SLMS - https://www.qb365.in/slms/ Complete Questions and Answers

Questions:

Generic 3

6 x 3 = 18

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

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

A, B, C and D are partners sharing profits and losses in the ration of 4 : 3 : 3 : 2. Their fixed capitals on 31.03.2010 were Rs. 60,000, Rs. 90,000, Rs. 1,20,000 and Rs. 90,000 respectively. After preparing the final accounts for the year ended 31.03.2010 it was discovered that interest on capital @ 12% p.a. was not allowed and interest on drawings amounting to Rs. 2,000, Rs. 2,500, Rs. 1,500 and Rs. 1,000 respectively was also not charged. Pass the necessary adjustment journal entry showing your working clearly.

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.

D, E and F were partners in a firm sharing profits in the ratio of 5 : 7 : 8. Their fixed capitals were D Rs. 5,00,000, E Rs. 7,00,000. and F Rs. 8,00,000. Their partnership deed provided for the following :
(i) Interest on capital @ 10% p.a
(ii) Salary of Rs, 10,000 per month of F.
(iii) Interest on drawings @ 12% p.a.
D withdrew Rs. 40,000 on 31st January, 2009; E withdrew Rs. 50,000 on 31st March, 2009 and F withdrew Rs. 30,000 on 31st December, 2009.
During the year ended on 31st December, 2009 the firm earned a profit of Rs. 3,50,000.
Prepare the Profit and Loss Appropriation Account for the year ended 31st December, 2009.

Sharma and Verma were partners in a firm sharing profits in the ratio of 4 : 1. Their capitals on 01- 04 -2006 were Sharma Rs. 5,00,000 and Verma Rs. 1,00,000. The partnership deed provided that Sharma will get a commission of 10% on the profit after allowing a salary Rs. 5,000 per month to Verma. The profit of the firm for the year ended 31st March, 2007 was Rs. 2,80,000.
Prepare Profit and Loss Appropriation Account of Sharma and Verma for the year ended 31.03.2007.

1 Marks

5 x 1 = 5

What is meant by ' average profit ' ?

State the nature of business afftect the value of goodwill of a firm ?

Define goodwill.

10.

State one difference between fixed capital account and fluctuating capital account of partners.

11.

Ram and Mohan are partners in a firm without any partnership deed. Their capitals are Ram Rs. 8,00,000 and Mohan Rs. 6,00,000. Ram is an active partner and looks after the business. Ram wants that profit should be shared in proportion of capitals. State with reason whether his claim is valid or not.

Generic 6

2 x 6 = 12

12.

J and L started business on 1st January, 2017 with the capitals of Rs.1,20,000 and Rs.80,000. respectively. J introduced Rs.50,000 to the firm on 1s July, 2017 as additional capital and on the same date he withdrew. His drawing for the year were Rs.20,000 from his capital. Calculate interest on capital payable to J and L, if interest is allowed @15% per annum.

13.

X and Y, two partners, drew for private use Rs 2,40,000 and Rs 1,60,000. Interest is chargeable @6% per annum on the drawings. What is the total interest?

Generic 8

1 x 8 = 8

14.

Dinesh, Yasmine and Faria are partners in a firm, sharing profits and losses in 11 : 7 : 2 respectively. The Balance Sheet of the firm as on 31st Dec. 2001 was as follows:

Liabilities	Rs.	Assets	Rs.
Sundry Creditors	800	Factory	7,350
Public Deposits	1,190	Plant & Machinery	1,800
Reserve fund	900	Furniture	2,600
Capital A/c		stock	1,450
Dinesh	5,100	Debtors Rs.1,500
Yasmine	3,000	Less: bad debits Rs.	1,200
		300 provisions
Faria	5,000	Cash in hand	1,590
	15,900		15,900

On the same date, Annie is admitted as a partner for on-sixth share in the profits with Capital of Rs.4,500 and necessary amount for his share of goodwill on the following items:-
a. Furniture of Rs.2,400 were to be taken over by Dinesh, Yashmine and Faria equally.
b. A Liability of Rs.1,670 be created against Bills discounted.
c. Goodwill of the firm is to be valued at 2.5 years purchase of average profits of 2 years. The profits are as under.
2000 - Rs.2,000 and 2001 - Rs.6,000
d. Drawings of Dinesh, Yasmine, and Faria were Rs.2,750; Rs.1,750; and Rs.500 Respectively.
e. Machinery and Public Deposits are revalued to Rs.2,000 and Rs.1,000 respectively
Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet of the new firm.

Multiple Choice Question

6 x 1 = 6

15.

Which is not a method to calculate the goodwill?

(a)

Average Profit Method

(b)

super profit method

(c)

Regular profit method

(d)

Capitalization method

16.

Who should compensate to whom in case of change in profit sharing ratio of existing partners?

(a)

gaining partner to sacrificing partner

(b)

sacrificing partner to gaining partner

(c)

both (i) and (ii)

(d)

None of the above

17.

Goodwill is a/an :

(a)

Current asset

(b)

Tangible asset

(c)

Intangible asset

(d)

Fictitious asset

18.

Interest on partner’s capital is :

(a)

a gain

(b)

a loss

(c)

an appropriation

(d)

None of these

19.

A partnership deed is silent for the payment of interest on partners’s loan but there was a loss instead of profits during the year 2013-14. At what rate will the interest on partner’s loan be allowed?

(a)

6 % p.a even if the firm incurs loss

(b)

As per the partnership deed

(c)

No interest will be provided

(d)

None of these.

20.

Loss is distributed among the partners:

(a)

Equally

(b)

As per the partnership deed

(c)

Ratio of capitals

(d)

None of these.

Visit QB365-SLMS - https://www.qb365.in/slms/

Answers Key:

Generic 3

6 x 3 = 18

Profit & Loss A/c.	Profit & Loss Appropriation A/c
i) Profit and Loss A/c is prepared to ascertain net profit or net loss of the business for an accounting year.	i) In case of partnership firms, profit and loss appropriate/ distribute the profit of the year among partners.
ii) It is prepared by all the business firms.	ii) Only partnership firms and companies prepare profit and loss appropriation A/c.

On debit side: Drawing, interest on drawing, share of loss, closing credit balance of the capital.
On credit side: Opening credit balance of capital, additional capital introduced, share of profit, interest on capital, salary to a Partner, commission to a Partner.

Dr. A's Current A/c, Rs. 6,867 and B's Current A/c Rs. 750, Cr.C's Current A/c Rs. 3,850 and D's Current A/c Rs. 3,767.

Dr. Profit and loss Appropriation Account for the year ended .... Cr.
Particulars	Amt (Rs.)	Amt (Rs.)	Particulars	Amt (Rs.)
To Interest on Capital			By Net Profit as per Profit and Loss Nc	1,56,000
A's Current A/c	3,000
B's Current A/c	3,000
C's Current A/c	4,000	10,000
To Salary
C's Current A/c		6,000
To Profit Transferred to
A's Current A/c	51,000
B's Current A/c	45,000
C's Current A/c	44,000	1,40,000
		1,56,000		1,56,000

Journal

Particulars	Amt (Dr)	Amt (Cr)
Profit and Loss Appropriation A/c Dr	1,40,000
To A's Current A/c		51,000
To B's Current A/c		45,000
To C's Current A/c		44,000
(Being profit distributed among the partners)

Working Note
1. Calculation of Interest on Capital
\(A=60,000 \times \frac{5}{100}=Rs. 3,000 ; B=60,000 \times \frac{5}{100}=Rs. 3,000 ; C=80,000 \times \frac{5}{100}=Rs. 4,000\)
2. Capital ratio of A, Band C =60,000 : 60,000 : 80,000, i.e. 3 : 3 : 4.
3.

Divisible Profit Rs. 1,40,000 viz.,	A Rs.	B Rs.	C Rs.
First Rs. 20,000 in 3 : 3 : 4	6,000	6,000	8,000
Next Rs. 30,000 in 5 : 3 : 2	15,000	9,000	6,000
Remaining profit Rs. 90,000 equally i.e. 1 : 1 : 1	30,000	30,000	30,000
	51,000	45,000	44,000

Interest on Drawing D Rs. 4,400, E Rs 4,500 and F Nil; Divisible Profit Rs. 38,900 transferred to D's current A/c Rs 9,725, E's Current A/c Rs 13,615 and F's Current A/c Rs 15,560.

Divisible Profit Rs.1,98,000 transferred to Sharma's Capital Rs.1.58,400 and Verma's Capital Rs.39,600.

1 Marks

5 x 1 = 5

()
Average profit is the average of the profits of past few years.

()
A business which products best quality of products or have a stable demand is likely to earn more profits and therefore, has more value of goodwill.

()
Goodwill is the value of the reputation of a firm in respect of profits expected in furture over and above the normal profits earned by other firms in the same business.

10.

()
The fixed capital account of partners always shows a credit balance whereas the fluctuating capital of partners may sometimes show a debit balance.

11.

()
As in the absence of partnership deed, if any partner apart from his share of capital advances money to the firm as a loan, he is entitled to interest on such loans @ 6% p.a., so Chander's claim is not valid.

Generic 6

2 x 6 = 12

12.

J = Rs.20,520 L = Rs.12,000

13.

X = Rs. 7,200 and Y = Rs. 4,800

Generic 8

1 x 8 = 8

14.

Books of Dinesh, Yasmine, Farte and Anie
Revaluation Account
Particulars	Rs.	Assets		Rs.
To Bills Discounted A/c	1670	By Public deposits A/c		190
		By Machinary A/c		200
		By Loss transfered to
		Dinesh's capital A/c	704
		Yasmine's Capital A/c		448
		Faria's Capital A/c	128	1280
	1670			1670

PARTNERS' CAPITAL ACCOUNTS
Dr. Dr.
Particulars	Dinesh Rs.	Yasmine Rs.	Faria Rs.	Annie Rs.	Particulars	Dinesh Rs.	Yashmine Rs.	Faria Rs.	Annie Rs.
To Revaluation					By Balance b/d	5100	3000	5000	-
A/c (Loss)	704	448	128	-	By Reserve F A/c	495	315	90	-
To Furniture A/c	800	800	800	-	By cash A/c	-	-	-	4500
To Drawing	2750	1750	500	-	By Premium A/c	917	583	167	-
A/c
To Balance c/d	2258	900	3829	4500
	6512	3898	5257	4500
					By Balance b/d	2258	900	3829	4500

Balance sheet
as at 31.12.2001
Particulars		Rs.	Assets		Rs
Sundry Creditors		800	Cash in Hand		2757
Public Deposits		1000	Factory Buildings		7350
Capitals: Dinesh	2258		Machinary		2000
			Furniture		200
Yashmine	900		Stock		1450
Faria	3829		Debtors	1500
Annie	4500	11487	Less: Provision	300	1200
Bill Discounted		1670
		14957		14957