YUGANTAR PUBLIC SCHOOL, RAJNANDGAON

Weekly Test 2019-20

Subject :- Accountancy MM : 40
Class : XII
Date : Time : 80Mins
Q1 In the absence of Partnership Deed, what are the rules relation to : 01
(a) Salaries of partners,
(b) Interest on partners’ loan

Q2 At the time of admission of a partner the balance of Profit and Loss Account is transferred to the 01
capital account of _______________ in their _____________ ratio.
Q3 The extension of Profit and Loss Account is _____________. 01

Q4 X and Y are partners sharing profits in the ratio of 3 : 2 with capitals of Rs. 8,00,000 and Rs. 03
6,00,000 respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an annual salary
of Rs.60,000 which has not been withdrawn. Profit for the year ended 31st March, 2019 before
interest on capital but after charging Y's salary amounted to Rs. 2,40,000.
A provision of 5% of the profit is to be made in respect commission to the manager. Prepare an
account showing the allocation profits.

Q5 Ravi and Mohan were partners in a firm sharing profits in the ratio of 7:5. Their respective fixed 03
capitals were Ravi Rs.10,00,000 and Mohan Rs.7,00,000. The partnership deed provided for the
following:

1. Interest on Capital @ 12% pa.

2. Ravi’s salary Rs.6,000 per month and Mohan’s salary Rs.60,000 per year.

The profit till March 31-3-2019 was Rs.5,04,000 which was distributed equally, without providing
for the above. Record an adjustment entry.

Q6 X and Y are partners sharing profits and losses in the ratio of 2 : 3 with capitals Rs. 2,00,000 and 03
Rs. 3,00,000 respectively. On 1st October, 2018, X and Y gave loans of Rs. 80,000 and Rs. 40,000
respectively to the firm. Show distribution of profits/losses for the year ended31stMarch, 2019 in
each of the following alternative cases:
Case 1 : If the profits before interest for the year amounted to Rs. 21,000.
Case 2 : If the profits before interest for the year amounted to Rs. 3,000.

Q7 From the following information, calculate value of goodwill of the firm: 04

(iii) On the basis of Capitalisation of Super Profit.
(iv) On the basis of Capitalisation of Average profit.
Information:
(a) Average Capital Employed is Rs. 6,00,000.
(b) Net Profit/(Loss) of the firm for the last three years ended are:
31st March, 2018 – Rs. 2,00,000, 31st March, 2017 – Rs. 1,80,000, and 31st March, 2016 – Rs.
1,60,000.
(c) Normal Rate of Return in similar business is 10%.
(d) Remuneration of Rs. 1,00,000 to partners is to be taken as charge against profit.
(e) Assets of the firm (excluding goodwill, fictitious assets and non-trade investments) is Rs.
7,00,000 whereas Partners' Capital is Rs. 6,00,000 and Outside Liabilities Rs. 1,00,000.
 Q8X and Y are partners in a firm sharing profits in the ratio of 3 : 2. They admitted Z as a partner
for 1/4th share of profits. At the time of admission of Z, Debtors and Provision for Doubtful Debts
appeared at Rs. 76,000 and Rs. 8,000 respectively. Rs. 6,000 of the debtors proved bad. A
provision of 5% is to be created on Sundry Debtors for doubtful debts. Pass the necessary Journal
entries. 04

Q9 1)Ashish and Aakash are partners sharing profit in the ratio of 3 : 2. Their Capital Accounts 06
showed a credit balance of Rs. 5,00,000 and Rs. 6,00,000 respectively as on 31st March, 2019
after debit of drawings during the year of Rs. 1,50,000 and Rs. 1,00,000 respectively. Net profit
for the year ended 31st March, 2019 was Rs. 5,00,000. Interest on capital is to be allowed @ 10%
p.a.
prepare Profit and Loss Appropriation Account.

2) The partners of a firm, Alia, Bhanu and Chand distributed the profits for the year ended 31st
March, 2017, Rs. 80,000 in the ratio of 3 : 3 : 2 without providing for the following adjustments:
(a) Alia and Chand were entitled to a salary of Rs. 1,500 each p.a.
(b) Bhanu was entitled for a commission of Rs. 4,000.
(c) Bhanu and Chand had guaranteed a minimum profit of Rs. 35,000 p.a. to Alia any deficiency
to borne equally by Bhanu and Chand.

Pass the necessary Journal entry for the above adjustments in the books of the firm. Show
workings clearly.
Q10 1) Bharat and Bhushan are partners sharing profits in the ratio of 3 : 2. They decided to 06
admit Manu as a partner from 1st April, 2019 on the following terms:
(i) Manu will be given 2/5th share of the profit.
(ii) Goodwill of the firm will be valued at two years' purchase of three years' normal
average profit of the firm.
Profits of the previous three years ended 31st March, were:
2019 - Profit Rs. 30,000 (after debiting loss of stock by fire ₹ 40,000).
2018 - Loss Rs. 80,000 (includes voluntary retirement compensation paid Rs.1,10,000).
2017 - Profit Rs. 1,10,000 (including a gain (profit) of ₹ 30,000 on the sale of fixed
assets).Calculate the value of goodwill.

2)A partnership firm earned net profits during the past three years as follows:
Year ended 31st March, 2019 31st March, 2018 31st March, 2017
Net Profit (Rs.) 2,30,000 2,00,000 1,70,000
Capital investment in the firm throughout the above-mentioned period has been Rs.
4,00,000. Having regard to the risk involved, 15% is considered to be a fair return on
the capital. The remuneration of the partners during this period is estimated to be Rs.
1,00,000 p.a.
Calculate value of goodwill on the basis of two years' purchase of average super profit
earned during the above-mentioned three years.
Q11 A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following is their 08
Balance Sheet as at 31st March, 2019:

Liabilities Rs. Assets Rs.

Capital A/cs: Building 35,000
A 50,000 Machinery 25,000

B 30,000 80,000 Stock 15,000

Creditors 20,000 Debtors 15,000

 Investments 5,000
Bank 5,000

1,00,000 1,00,000

C is admitted as a partner on 1st April, 2019 on the following terms:

(a) C is to pay Rs. 20,000 as capital for 1/4th share. He also pays Rs. 5,000 as premium for
goodwill.
(b) Debtors amounted to Rs. 3,000 is to be written off as bad and a Provision of 10% is created
against Doubtful Debts on the remaining amount.
(c) No entry has been passed in respect of a debt of Rs. 300 recovered by A from a customer,
which was previously written off as bad in previous year. The amount is to be paid by A.
(d) Investments are taken over by B at their market value of Rs. 4,900 against cash payment.
You are required to prepare Revaluation Account, Partner's Capital Accounts and new Balance
Sheet.
Or

X and Y are partners sharing profits and losses in the ratio of 3/4 and 1/4. Their Balance Sheet as
at 31st March, 2019 is:

Liabilities Rs. Assets Rs.

Capital A/cs: Land and Building 1,25,000

X 1,50,000 Furniture 5,000

Y 80,000 2,30,000 Stock 1,00,000

Workmen Compensation 20,000 Sundry Debtors 80,000

Reserve
Sundry Creditors 1,50,000 Bills Receivable 15,000

Bills Payable 37,500 Cash at Bank 1,00,000

Cash in Hand 12,500

4,37,500 4,37,500

They admit Z into partnership on 1st April, 2019 on the following terms:
(a) Goodwill is to be valued at Rs. 1,00,000.
(b) Stock and Furniture to be reduced by 10%.
(c) A Provision for Doubtful Debts is to be created @ 5% on Sundry Debtors.
(d) The value of Land and Building is to be appreciated by 20%.
(e) Z pays Rs. 50,000 as his capital for 1/5th share in the future profits.
You are required to show Revaluation Account, Partners' Capital Accounts and Balance Sheet of
the new firm.