# Accounting for Partnership Firms (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Accountancy): Questions 16 - 19 of 135

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## Question number: 16

» Accounting for Partnership Firms » Partnership

One Liner Question▾

### Write in Brief

Alka, Barkha and Charu are partners in a firm having no partnership agreement. Alka, Barkha and Charu contributed Rs. 2,00,000, Rs. 3,00,000 and Rs. 1,00,000 respectively. Alka and Barkha desire that the profits should be divided in the ratio of capital contribution. Charu does not agree to this. Is Charu correct? Give reasoning.

## Question number: 17

» Accounting for Partnership Firms » Partnership

One Liner Question▾

### Write in Brief

What is Surrender Value?

## Question number: 18

» Accounting for Partnership Firms » Partnership

### Write in Short

P and Q are partners with capitals of Rs. 6,00,000 and Rs. 4,00,000 respectively. The profit and Loss Account of the firm showed a net Profit of Rs. 4,26,800 for the year. Prepare Profit and Loss account after taking the following into consideration: -

1. Interest on P’s Loan of Rs. 2,00,000 to the firm
2. Interest on Drawings@8 % p. a. Drawings were; P Rs. 80,000 and Q Rs. 1000,000.
3. Interest on ’capital to be allowed@6 % p. a.
4. Q is to be allowed a commission on sales@3%. Sales for the year was Rs. 1000000
5. 10 % of the divisible profits is to be kept in a Reserve Account.

## Question number: 19

» Accounting for Partnership Firms » Partnership

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.

 Liabilities Rs. Assets Rs. Capital Account X Y 1,76,000 1,45,200 Land 1,65,000 Creditors 91,300 Furniture 24,500 Stock 1,32,000 Debtors 35,200 Bills Receivable 28,600 Cash 27,500 4,12,500 4,12,500

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

1. 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.
2. 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.
3. A liability to the extent of Rs. 1,500 should be created for a claim against the firm for damages.
4. 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

 Particulars Amount Particulars Amount 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 discount on 3652

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