Accounting for Partnership Firms (CBSE Class-12 Accountancy): Questions 96 - 103 of 135

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Question number: 96

» Accounting for Partnership Firms » Past Adjustments

Short Answer Question▾

Write in Short

Kumar and Raja were partners in a firm sharing profits in the ratio of 7: 3. Their fixed capital were: Kumar Rs. 9, 00, 000 and Raja Rs. 4, 00, 000. The partnership deed provided for the following but the profit for the year was distributed without providing for:

i) Interest on capital@9 % p. a.

ii) Kumar’s salary Rs. 50, 000 per year and Raja’s salary Rs. 3, 000 per month.

The profit for the year ended 31.3. 2007 was Rs. 2, 78, 000.

Pass the adjustment entry.

Question number: 97

» Accounting for Partnership Firms » Reconstitution and Dissolution » Retirement and Death of a Partner

One Liner Question▾

Write in Brief

Can an outgoing partner or Legal Representative of Deceased Partner share in the subsequent profits?

Question number: 98

» Accounting for Partnership Firms » Reconstitution and Dissolution » Change in the Profit Sharing Ratio

One Liner Question▾

Write in Brief

Where will you record ‘increase in machinery’ in case of change in profit sharing ratio among the existing partners?

Question number: 99

» Accounting for Partnership Firms » Reconstitution and Dissolution » Retirement and Death of a Partner

One Liner Question▾

Write in Brief

What do you understand by ‘Gaining Partner’?

Question number: 100

» Accounting for Partnership Firms » Fixed Versus Fluctuating Capital Accounts

One Liner Question▾

Write in Brief

What do you understand by fixed capital of partners?

Question number: 101

» Accounting for Partnership Firms » Not-for-Profit Organizations

One Liner Question▾

Write in Brief

Not-for-profit organisations have some distinguishing features from that of profit o rganisations. State any one of them.

Question number: 102

» Accounting for Partnership Firms » Reconstitution and Dissolution » Admission of a Partner

One Liner Question▾

Write in Brief

Give journal entry for distribution of ‘Accumulated Profits * in case of admission of a partner.

Question number: 103

» Accounting for Partnership Firms » Reconstitution and Dissolution » Admission of a Partner

Essay Question▾

Describe in Detail

X and Y are partners as they share profits in the proportion of 3: 1 their balance sheet as at 31.03. 07 as follows.

On the same date, Z is admitted into partnership for 1/5th share on the following terms

a. Goodwill is to be valued at 3 years purchase of average profits of last for year which were Rs. 20, 000 Rs. 17, 000 Rs. 9, 000 (Loss) respectively.

b Stock is fund to be overvalue by Rs. 2, 000 Furniture is reduced and Land to be appreciated by 10 % each, a provision for Bad Debts@12 % is to be created on Debtors and a Provision of Discount of Creditors@4 % is to be created.

c A liability to the extent of Rs. 1, 500 should be created for a claim against the firm for damages.

d An item of Rs. 1, 000 included in Creditors is not likely to be claimed, and hence it should be written off.

Prepare Revaluation Account, Partners: Capital Accounts and Balance Sheet of the new firm if Z is to contribute proportionate capital and goodwill. The capital of partners are to be in profit sharing ratio by opening current Accounts.

Explanation

REVALUATION ACCOUNT in the Books of X, Y AND Z

shows re-valuated amount of assets and liabilities

Dr.

Cr.

Particulars

Amount

Particulars

Amount Particulars

To Stock A/c

2000

By land A/c

16500

To furniture A/c

2420

By creditors A/c

1000

To Provision for bad debts A/c

4224

By provision of… (215 more words) …

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