Doon Global School

Accounts Assignment – PARTNERSHIP

1. Define partnership and its essential features.[6 marks]

2. Explain the meaning and list of contents of partnership deed.[3]
3. Identify the provisions of Indian Partnership Act 1932, that are relevant for accounting.[6 marks]
4. Why is profit and loss adjustments Account prepared? Explain [3]
5. Illustrate how interest on drawings will be calculated under various situations.[6]
6. Pooja and Neha are in partnership with capitals of Rs. 80,000 and Rs 60,000 respectively. During the year 2006-07,
Pooja withdrew Rs.10,000 from her capital and Neha Rs.15,000.Profits before charging interest on capital was
Rs. 50,000. Pooja and Neha shared profits in the ratio of 3:2. Calculate the amount of interest on the capital @ 12%
p.a. for the year ended on 31.03.2007.
7. Radha and Raman are partners with capital of Rs.3,00,000 and 1,00,000 respectively. The Profit(as per profit and
loss account) for the year ended 31.03.2008 was Rs.1,20,000. Interest on capital is to be allowed at 6% p.a. Raman
was entitled to a salary of Rs30,000 p.a. The drawings of the partners were Rs.30,000 and Rs.20,000. Interest to be
charged to Radha was Rs 1000 and to Raman was Rs. 500. Assuming that Radha and Raman are equal partners.
State their share of profit after necessary appropriations.
8. Manpreet, Mandeep and Rahul are partners sharing profits in the ratio of 5:3:2. According to the partnership
agreement Rahul is to get minimum amount of Rs 10,000 as per share of profits every year. The net profit for the
year 2008 amounted to Rs. 40000. Prepare the Profit and Loss Appropriation Account.
9. Sadar and Jasbeer started partnership business partnership on 01.04.2008 with capital of Rs 2,50,000 and Rs.
1,50,000 respectively. On 01.10.2008 they decided their capitals should be Rs.2,00,000 each. The necessary
adjustments in the capitals are made by introducing or withdrawing cash. Interest on the capital is to be allowed @
10%p.a. Calculate interest on capital as on 31.03.2009.
10. Geeta, Karishma and Kiran are partners in sharing profits in the ration of 5:4:1. Kiran is given gurantee that her
share of profit, in any year will not be less than Rs.5000. The profits for the year ending 31.03.2008 amounts to Rs.
35,000. Shortfall if any, in the profits guaranteed to Kiran is to be borne by Geeta and Karishma in the ratio of 3:2.
Record necessary journal entry to show distribution of profit among partner.
11. Explain various methods of valuation of goodwill. [6]
12. How will you deal with the accumulated profits and losses and reserves on the admission of a new partner?[6]
13. Explain the concept and the ways of reconstitution of a partnership firm.[6]
14. Identify the matters that need adjustments in the books of firm when a new partner is admitted. [4].
15. Ankur and Ankit are partners sharing profit in the ratio of 5:3. Rahul was admitted for 1/5 share and was asked to
contribute proportionate capital and Rs.4000 for premium (goodwill). The capital of Ankur and Ankit after all
adjustments relating to revaluation, goodwill etc., worked out to be Rs.45,000 and Rs.35000 respectvely.
Required: Calculate new Profit Ratio, capital to be brought in by Rahul and record necessary journal entries.
16. Pizza Hut’s profits for last 5 years were Rs 20,000, 30,000, 40,000, 50,000 and 60,000 respectively. Calculate the
firms goodwill on the basis of Three years purchase of weighted average profits using weight of 1,2,3,4,5.
17. Amit and Vinay are partners in a firm sharing profits and losses in 3:1 ratio. On 1.1.2007 they admitted Paras as
partner. On Paras’s admission the profit and loss account of Amit and Vinay showed debit balance of Rs. 40,000.
Record necessary journal entries for the treatment of the same.
18. A hotel buiness has earned average profits of Rs. 1,00,000 during last few years. Find out the value of goodwill by
capitalization method, given that the assets of business are Rs. 10000 and its external liabilities are Rs. 1,80,000.
The normal rate of return is 10%/
19. A,B and C are partners sharing profits in 3:2:2 ratio. They admitted D as a new partner for 1/5 share which he
acquired from A,B and C in the ratio of 2:2:1 ratio. Calculate new profit sharing ratio?
20. Saurav and Navneet are partners in a firm sharing profits in 5:3 ratio. They admitted Anis into the firm and the new
profit sharing ratio agreed at 4:2:1. Calculate Sacrificing ratio.
21. What are the different ways in which a partner can retire from the firm [3].
22. Explain the mode of payment to a retirement partner [6].
23. Differentiate between sacrificing ratio and gaining ratio. [3]
24. Eshant, Abhishek and Raj are partners sharing profits and losses in the ratio 1/2, 3/10 and 1/5. Abhishek retires
from the firm. Eshant and Raj decide to share future profits and losses in the ratio of 3:2. Calculate gaining ratio.
 25. Jyoti, Oshin and Mohini are partners in sharing profits in the ratio of 2:3:5 Goodwill is appearing in the books at a
value of Rs.60000. Jyoti retires and goodwill is valued at Rs.90,000. Oshin and Mohini decided to share the future
profits equally. Record necessary journal entries.

Accounting for Not-for-Profit Organization

1. What is subscription and Capital Fund? How is it calculated?

2. What is Receipt and Payment Account? How is it different from Income and Expenditure account?
3. The receipt and payment account for the year ending 31.03.2008

Receipts Amount Payments Amount

Balance b/d Furniture 3000
Cash in Bank 22000 Investments 55000
cash in Hand 8800 Advance for building 20000
Donations 32000 Charities 60000
Subscriptions 50200 Salaries 10400
Endowment Fund 60000 Rent and Taxes 4000
Legacies 24000 Printing 1000
Interest on Investment 3800 Postage 300
Interest on Deposits 800 Advertisements 1100
Sale of old
newspapers 500 Insurance 4800
Balance c/d
Cash at Bank 32000
Cash in hand 10500

202,100.0 202,100.0
0 0

Prepare income and expenditure Account for the year ended 31.03.2008, considering the following
i) It was decided to treat fifty percent of the amount received on account of legacies and donations as income.
ii) Liabalities to be provided for are: Rent Rs.800; Salaries Rs. 1200; advertisement Rs. 200
iii) Rs 2000 due for interest on investment was not actually received.

4. How will you deal with the following items while preparing for the Bombay Women Cricket Club, its income and
Expenditure account for the year ending 31.03.2008 and its balance sheet as on 31.03.2008
Rs
a) Donation received during the year of the construction of Permanent Pavillion 12,25,000
Expenditure incurred up to 31.03.2007 on its construction 10,80,000
Total estimated expenditure on construction of Pavillion Being 25,00,000

B) Tournament Fund:
Balance as on 1.4.2006 10,700
Subscriptions for tournament received during the year 65,800
Expenditure incurred on conducting tournaments during the year 72,400

c) Life membership fee received during the year 28,000