Accounting for Partnership Firms (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Accountancy): Questions 46 - 47 of 135

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Question number: 46

» Accounting for Partnership Firms » Past Adjustments

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Amit and Vijay started a partnership business on 1st January, 2007. Their capital contributions were Rs. 2,00,000 and Rs. 10,0000 respectively. The partnership deed provided:

i. Interest on capitals@10 % p. a.

ii. Amit, to get a salary of Rs. 2,000 p. m. and Vijay Rs. 3,000 p. m.

iii. Profits are to be shared in the ratio of 3: 2.

The profits for the year ended 31st December, 2007 before making above appropriations were Rs. 2,16,000. Interest on Drawings amounted to Rs. 2,200 for Amit and Rs. 2,500 for Vijay. Prepare Profit and Loss Appropriation Account.

Question number: 47

» Accounting for Partnership Firms » Partnership

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A, and C are partners with fixed capitals of Rs. 2,00,000, Rs. 1,50,000 and Rs. 1,00,000 respectively. The balance of current accounts on 1st January, 2004 were A Rs. 10,000 (Cr. ); B Rs. 4,000 (Cr. ) and C Rs. 3,000 (Dr. ). A gave a loan to the firm of Rs. 25,000 on 1st July, 2004. The Partnership deed provided for the following: -

  1. Interest on Capital at 6%.
  2. Interest on drawings at 9%. Each partner drew Rs. 12,000 on 1st July, 2004.
  3. Rs. 25,000 is to be transferred in a Reserve Account.
  4. Profit sharing ratio is 5: 3: 2 upto Rs. 80,000 and above Rs. 80,000 equally. Net Profit of the firm before above adjustments was Rs. 1,98,360.

From the above information prepare Profit and Loss Appropriation Account, Capital and Current Accounts of the partners.

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