RYAN INTERNATIONAL SCHOOL

SOHNA ROAD, GURGAON

2016-2017
Assignment on Partnership Fundamentals
CLASS :
XII SUB :
Accounts
DATE : 30 March, 2016
th

Q1. and Y enter into a partnership on 1 April, 2014

X st

with capitals of Rs. 20,000 and Rs. 40,000 respectively.

As a Partnership Deed
(i) X and Y are entitled to receive Salary of Rs. 200
per month and Rs. 300 per month respectively.
(ii) Interest on Capital is to allowed at the rate of
6% p.a.
(iii) The profit sharing ratio of X and Y will be 1 : 1.
Profit earned during the year 2014-15 amounted to Rs.
50,000. Give Journal entries and prepare the Profit and
Loss Appropriation Account.

Q2. and Y are partners sharing profits in the ratio of 4 :

X
1 with capitals of Rs. 1,50,000 and Rs. 2,50,000
respectively. X is allowed salary of Rs. 50,000. Interest
on capitals is agreed @ 10% p.a. The profits for the year
2014 prior to allowing interest on capital but after
charging X salary is Rs. 5,00,000. A provision of 10%
profit is to be made in respect of commission to manger.
Prepare relevant account (s) to allocate profits.

Q3. onu and Monu entered into partnership with a

S
capital contribution of Rs. 1,20,000 and Rs. 40,000
respectively as on 1.4.2014. The net profit earned during
the year 2014-15 (before taking into consideration the
clauses of partnership deed) was Rs. 48,000.
Partnership Deed provided that :
(a) Monu is entitled to a Salary of Rs. 12,000 per
 annum.
(b) Interest on capital to be allowed to the
partners @ 6% p.a.
(c) Partners draw Rs. 500 and Rs. 400 per month
from the firm as drawings.
Prepare the Profit and Loss Appropriation Account and
Partners Capital Account in the following case
(i) When Partners Capital are fixed.
(ii) When Partners capitals are fluctuating.

Q4. Sumit and Geetu are partners in a firm sharing profits

and losses equally. On 1 April, 2014, the capitals of the
st

partners were Sumit Rs. 4,00,000 and Geetu Rs.

3,00,000. The Profit and Loss Appropriation Account of
the firm showed a net profit of Rs. 7,50,000 for the year
ended 31 March, 2015. The terms of Partnership Deed
st

providing the following :

(i) Transfer 10% of distributable profits to reserve
fund.
(ii) Interest on Capitals @ 6% p.a.
(iii) Interest on drawings 6% p.a. Drawings being
Sumit Rs. 80,000 and Geetu Rs. 60,000.
Prepare Profits and Loss Appropriation Account for the
year ended 31 March, 2015.
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Q5. jay and Vijay are partner in a firm with a profit

A
sharing ratio of 7 : 3. The Profit and Loss A/c of the firm
for the year ended 31 December, 2014 shows a net profit
st

of Rs. 60,000. Prepare Profits and Loss Appropriation

Account after taking the following adjustment into
considerations.
(i) Partners drawings are Rs. 4,000 and Rs. 3,000
for Ajay and Vijay respectively.
(ii) Interest on drawings is to be charged @ 9% p.a.
at an average of 6 months.
(iii) Ajay is entitled to an annual salary of Rs. 4,800.
(iiii) Partners capital as on 1.1.2014 was Ajay Rs.
30,000 and Vijay Rs. 50,000 and balance of
Current Account were Rs. 7,000 (Cr.) and Rs.
 1,000 (Dr.) respectively.
(v) Interest on Capital is to be allowed @ 6% p.a.

Q6. am and Shyam started a partnership on 1 January

R st

2014 with a capital contribution of Rs. 2,00,000 and Rs.

3,00,000 respectively. The partnership deed provided for
the following
(i) Profit sharing ratio should be 3 : 2.
(ii) Interest on capitals should be allowed @ 12%
p.a.
(iii) Ram to get a salary of Rs. 2,000 per month and
Shyam Rs. 1,500 per month
Profits for the year ending 31 December, 2014 before
st

making the above appropriations were Rs. 2,16,000.

Interest on drawings for Ram amounted to Rs. 2,200 and
for Shyam Rs. 2,500.
Prepare Profit and Loss Appropriation Account.

Q7. , B and C were sharing profits in the ratio of 3 : 2 :

A
1. B was entitled to receive a commission of 10% on net
profit before charging such commission. Net Profit
before charging the commission payable to B was Rs.
98,000. Calculate the commission payable to B.

Q8. , Y and Z were sharing profits in the ratio of 2 : 2 :

X
1. Z was entitled to receive a commission of 10% on net
profits after charging such commission. Net profit before
charging the commission payable to Z was Rs. 1,10,000.
Calculate the commission payable to Z.

Q9. and B were partners in a firm with a profit sharing

A
ratio of 7 : 5. A had given a sum of Rs. 1,20,000 to the
firm as loan on 1 July 2014, and B had given a sum of
st

Rs. 60,000 to the firm on the same date. Distribute the

profit/losses amongst the partners in each of the
following cases assuming that the firm closes the books
on December 31 every year and deed is silent to the rate
st

of interest on loan.
Case (a) : If the trading profit for the year 2014 is Rs.
 6,300
Case (b) : If the profits of the firm, before charging any
interest amounted to Rs. 4,500.
Case (c) : if the losses before any interest for the year
amounted to Rs. 4,500

Q10. rom the following particulars of partners Rohit and

F
Praveen who were sharing profits in the ratio of 2 : 3,
prepare Capital Accounts:
Rohit Praveen
(Rs.) (Rs.)
Capital on 1 Jan. 2011 70,000 50,000
Drawings 700 per month (Drawn 500 per month
on 1st day of the every (Drawn on last day of
month) the every month)
Interest on Loan 5,000 8,000
Interest on Capital @ 5% p.a. ? ?
Interest on Drawings @ 8% p.a. ? ?
Profit Share of 2011 30,000 35,000

Q11. and B enters into partnership. As per Partnership

A
Deed :
(i) A to receive a Salary of Rs. 1,000 per month.
(ii) B to be allowed a commission of Rs. 1,000.
(iii) Interest on As Loan to the firm, to be fixed at
12% p.a.
(iiii) Rent of Rs. 4,000 is payable to B
(v) Profit sharing ratio amongst A and B should be 1
: 1.
A has given Rs. 10,000 to the firm as loan on 1.07.2014
and trading and profits of the firm for the year 2014 was
Rs. 32,500. Show the distribution of Profits.

Q12. and B were partners sharing profits and losses in

A
the ratio of 2 : 1. The following balances were extracted
from the books of account for the year ended March, 31,
2013
Particulars Debit Amount (Rs.) Credit Amount (Rs.)
Capitals :
A - 1,00,000
B - 2,00,000
Drawings :
A 60,000 -
B 80,000 -
Postage and Telegrams 2,500 -
Discount 3,000 -
Wages 18,000 -
Salaries 27,200 -
Land & Building 7,20,000 -
Machinery 8,00,000 -
Computers 70,000 -
Prepare the final accounts for the year ended March 31,
2013 of the firm taking into account the following further
information:
(a) Gross Profit was Rs. 2,59,000
(b) Interest on capitals is allowed at 5% p.a. and
interest on drawings is to be charged at 6%
p.a.
(c) B is entitled to a salary of Rs. 12,500 p.a.
(d) Charged depreciation at 5% p.a. on Land &
Building, 10% p.a. on Machinery and 60%
p.a. on computers.

Q13. Akash and Prakash who were sharing profits in the

ratio of 3 : 2, have capitals of Rs. 30,000 and Rs. 20,000
respectively. On 1 July 2012 they agreed to admit their
st

clerk Vicky as a partner with 1/8 share of profits. Vicky

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has previously been in receipt of a salary of Rs. 22,500

p.a. together with a commission of 5% of net profits after
charging such salary and commission. It was further
agreed that any excess amount which Vicky will be
entitled to receive as a partner over the amount which
would have been due to him, if he continued to be the
clerk, would be borne by Akash and Prakash in the ratio
of 2 : 3. The profits for the year ended 30 June 2013
th

before charging salary and commission of Vicky were

Rs. 1,80,000.
Requirement :
(i) Show the distribution of Profits.
(ii) Does your answer differ if profits of the firm
 were Rs. 3,50,000?

Q14. R, S and T are partners with profit sharing ratio of 1

: 1 : 1. Their capital contributions are Rs. 1,00,000, Rs.
60,000 and Rs. 40,000 respectively. R and S are not able
to devote full time to the partnership, however, T is
devoting full time to the working of the firm. Profits for
the year ending 31 March, 2015 was Rs. 3,30,000.
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(i) Identify the values of which according to you

have motivated the partners to share the profit
equally.
(ii) Prepare Profit and Loss Appropriation Account
for the distribution of profits for the year
ending 31 March, 2015.
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Q15. am, Rahim and Henry were three friends and

R
belongs different religions. They decided to form
partnership business of selling Agmark food products.
Ram was financially not so strong, so it was decided to
admit him without contributing any capital. On 1.4.2014
all of them formed a partnership on following terms
(i) Rahim will contribute Rs. 1,50,000 and Henry
Rs. 1,00,000.
(ii) Partners will share the profit equally.
The profit of the firm for the year ended 31 March, 2015
st

was Rs. 4,20,000.

(a) Identify the value(s) which according to you
motivated people of different religions to form a
partnership firm.
(b) Identify the value(s) which motivated them to
provide Agmark goods.
(c) Identify the value(s) which motivated them to
share profits equally.
(d) Prepare Profit and Loss Appropriation Account
of the firm for the year ending 31 March, 2015.
st

Q16. fter completing their graduation, Ram and Rahim

A
decided to sell ISI marked electronic goods to
economically weaker sections of the society at low rates.
 For this, they decided to form a partnership business as
per the provisions of the Partnership Act, 1932. They
further decided to include Julie who has completed her
graduation five years ago but still unemployed as a third
partner without contributing any capital. On 1.4.2011 all
of them formed a partnership of the following terms
(i) Ram will contribute Rs. 2,00,000 and Rahim Rs.
1,00,000.
(ii) They share the profits in the ratio of 1 : 1 : 1.
(iii) Interest on capitals will be allowed @ 6% p.a.
The profit of the firm for the year ended 31 March, 2012
st

was Rs. 3,18,000.

(a) Identify four values which according to you
motivated them to form a partnership firm.
(b) Prepare Profit and Loss Appropriation Account
of the firm for the year ending 31 March, 2012.
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Q17. alman Khan from West Bengal, Honey Singh from

S
Punjab, Rajnikant from Chennai and Merry from Goa
formed a partnership without any partnership deed. They
contributed Rs. 5,00,000; Rs. 6,00,000; Rs. 7,00,000 and
Rs. 8,00,000 as their respective capitals. During the year,
2011-12 Honey Singh has used his personal car for
marketing purposes for which he has charged nothing.
The profits for the year ending 31 March, 2012 were Rs.
st

25,00,000. In the absence of partnership deed they were

not in position to distribute the profits. Salman Khan and
Rajnikant proposed the following to which they all agree

(i) Honey Singh shall be given commission @ 10%
on profit before charging his commission.
(ii) Profits shall be distributed equally.
a. Identify two values which according to you
motivated them to form a partnership firm
b. Prepare Profit and Loss Appropriation
Account of the firm for the year ending 31 st

March 2012.
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