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CBSE TEST PAPER-04

Class - XII Accountancy (Basics of Partnership)
Topic: Past Adjustments

1. Vinod, Ashish and Kanwar are partners in a firm having fixed capitals of Rs.40,000; [3]
Rs.20,000; 25,000 respectively sharing profits as 7 : 6 : 4. The rate of interest on capital
was agreed at 10% per annum, but was wrongly credited to them 12% per annum. Give
adjustment entry
2. Vinod, Gaurav and Swami sharing profits and losses equally. Their capitals were [3]
Rs.1,20,000; Rs.90,000 and Rs.60,000 respectively. For the year 2014, interest was
credited to them @6% instead of 5% p.a. Give adjustment entry.

3. On March 31, 2013 after the close of books of accounts, the capital accounts of A, B and C [3]
stood at Rs.48,000; 40,000 and Rs 24,000 respectively. The profits for the year Rs.72,000
was distributed equally. Subsequently it was discovered that interest on capital @5% p.a.
had been omitted. The profit sharing ratio was 2:2:1. Pass adjustment entry.
4. Ram and Shyam were partners in a firm sharing profits in the ratio of 3:5. Their fixed [3]
capitals were Rs.2,50,000 and Rs.4,50,000 respectively. After the final accounts of the
year had been closed, it was found that interest on capital at 10% per annum as provided in
the partnership agreement has not been credited to the capital accounts of the partners.
Give necessary adjustment entry.

5. A, B, C and D are partners sharing profits and losses in the ratio of 4:3:3:2. Their fixed [4]
capitals on 31.3.2010 were Rs.30,000; Rs.45,000; 60,000 and 45,000 respectively. After
preparing the final accounts for the year ended 31.3.2011. it was discovered that interest
on capital @12% p.a. was not allowed and interest on drawings amounting to Rs.1,000;
1,250; 750 and 500 respectively was not charged. Give necessary adjustment entry.

6. Vinod, Bitu and Chetan were partners in a firm. On 1.4.2013 their capitals were [4]
Rs.1,00,000; Rs.50,000 and Rs.50,000 respectively. As per the provisions of the
partnership deed:
(i) Chetan was entitled for a salary of Rs.10,000 p.a.
(ii) Partners were entitled to interest on capital at 5% p.a.
(iii) Profits were to be shared in the ratio of partner’s capital.
The net profit for the year 2013-14 of Rs.66,000 was divided equally without providing for
the above terms. Give adjustment entry.
7. PK, MK and NK shared profits in the ratio of 3:2:1. The profits of the last three years were [4]
Rs.2,80,000, Rs.1,68,000 and Rs.2,12,000 respectively. These profits were by mistake,
shared equally for all the three years. It is now decided to correct the error. Give entry.

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8. Seema, Tanuja and Tripti were partners in a firm trading in garments. They were sharing (6)
profits in the ratio of 5 : 3 : 2. Their capitals on 1st April, 2012 were Rs. 3,00,000, Rs.
4,00,000 and Rs. 8,00,000 respectively. After the flood in Uttarakhand, all partners
decided to help the flood victims personally.
For this Seema withdrew Rs. 20,000 from the firm on 15th September, 2012. Tanuja
instead of withdrawing cash from the firm took garments amounting to Rs. 24,000 on 1
October from the firm and distributed those to the flood victims. On the other hand, Tripti
withdrew Rs. 2,00,000 from her capital on 1st January, 2013 and provided a mobile
medical van in the flood affected area.
The partnership deed provides for charging interest on drawings @ 6% p.a. After the final
accounts were prepared it was discovered that interest on drawings had not been charged.
Give the necessary adjusting journal entry and show the working notes clearly. Also state
any two values which the partners wanted to communicate to the society.

Accountancy Challenge
Question
Vinod, Mohan and Sohan are partners sharing profits and losses in the ratio of 3:2:1. After the
final accounts have been prepared, it was discovered that interest on drawings had not been
taken into consideration. The interest on drawing of partners amounted to Vinod Rs.1,000;
Mohan Rs.720 and Sohan Rs.400. Give adjustment entry.

Note for teachers and students

In case you have any doubt or any inquiry please go through the
Ultimate Book of Accountancy CBSE class 12th
OR
Contact the respected author: authorcbse@gmail.com

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