Fundamentals Of Partnership Test: 11th Classes

Q1. X and Y are partners sharing profits and losses in the ratio of 3: 2 with capitals of Rs. 50,000 and Rs. 30,000 respectively. Each partner is entitled to 6% interest on his capital. X is entitled to a salary of Rs. 800 per month together with a commission of 10% of net 'Profit remaining after deducting interest on capitals and salary but before charging any commission. V is entitled to a salary of Rs. 600 per month together I. with-a commission of 10% of Net profit remaining after deducting interest on capitals and salary and after charging all commissions. The profits for the year prior to calculation of interest on capital but after charging salary of partners amounted to Rs. 40,000. Prepare partners' Capital Accounts: (i) When capitals are fixed. (5 Marks)                                                                   

Q.2. A, B and C are partners in a firm sharing profits and losses in the ratio of 2:3:5. Their fixed capitals were 15, 00,000, Rs.30, 00,000 and Rs.6, 00,000 respectively. For the year 2009 interest on capital was credited to them @ 12% instead of 10%. Pass the necessary adjustment entry. (5 Marks)

                                                                                                                                                                                         Q3. A and B are partners sharing profits in the ratio of 3: 2 with capitals of Rs. 5, 00,000 and Rs. 3,00,000 respectively. Interest on capital is agreed @ 6% p.a. B is to be allowed an annual salary of Rs. 25000. During 2006, the profits of the year prior to calculation of interest on capital but after charging B's salary amounted to Rs. 1, 25,000. A provision of 5% of the profits is to be made in respect of Manager's commission. Prepare an account showing the allocation of profits and partners' capital accounts. (5 Marks)

                                                                                                                                                                                             Q4. Vinod, Bitu and Chetah were partners in a firm. O 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) Cheetah 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. (5 Marks).