Accounting for Partnership Firms-Partnership (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Accountancy): Questions 24 - 26 of 30

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 209 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 250.00 or

Question number: 24

» Accounting for Partnership Firms » Partnership

One Liner Question▾

Write in Brief

What do you understand by ‘partners’, ‘firm’ and ‘firms’ name?

Question number: 25

» Accounting for Partnership Firms » Partnership

Essay Question▾

Describe in Detail

A, Band C were partners in a firm. sharing profits in the ratio of 5: 3: 2. On 31st March, 2005 their Balance Sheet was as under:

BALANCE SHEET of the firm as on 31st march, 2005.

shows available balance of assets and liabilities

Liabilities

Rs.

Assets

Rs.

Creditors

7,000

Buildings

20,000

Reserve

10,000

Machinery

30,000

Accounts:

Stock

10,000

A

30,000

Patents

6,000

B

25,000

Debtors

8,000

C

15,000

70,000

Cash

13,000

87,000

87,000

A died on 1st October, 2005. It was agreed between his executors and the remaining partners that

a. Goodwill be valued at 2 years’ purchase of the average profits of the previous five years, which were 2001: Rs. 15,000; 2002: Rs. 13,000; 2003: Rs. 12,000; 2004: Rs. 15,000 and 2005: Rs. 20,000.

b. Patents be valued at Rs. 8,000; Machinery at Rs. 28,000; Buildings at Rs. 30,000.

c. Profit for the year 2005 - 06 is taken as having accrued at the same rate as the previous year.

d. Interest on capital be provided at 10 % p. a.

e. A sum of Rs. 11,500 was to be paid to his executors immediately.

Prepare A’s Capital Account and his executors’ account at the time of his death.

Explanation

A’s Capital A/c at the time of his death

shows capital of partner A

Particulars

Rs.

Particulars

Rs.

Executor’s A/c

61,500

By Balance b/d

30,000

By Reserves

5,000

By B’s Capital A/c

9,000

By C’s Capital A/c

6,000

By Revaluation A/c

5,000

By Profit & Loss Suspense A/c

5,000

… (44 more words) …

Question number: 26

» Accounting for Partnership Firms » Partnership

One Liner Question▾

Write in Brief

What is the objective of taking a Joint Life Policy by a partnership firm?

f Page
Sign In