Accounting for Partnership Firms-Past Adjustments (CBSE Class-12 Accountancy): Questions 12 - 15 of 16

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Question number: 12

» Accounting for Partnership Firms » Past Adjustments

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What entry is recorded to distribute General Reserve on the profit and loss A/c balance give in Liability side of Balance sheet?

Question number: 13

» Accounting for Partnership Firms » Past Adjustments

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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: 14

» Accounting for Partnership Firms » Past Adjustments

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Ram and Mohan are partners in a firm without any partnership deed. Their capitals are

Ram Rs. 8, 00, 000 and Mohan Rs. 6, 00, 000. Ram is an active partner and looks after the business. Ram wants that profit should be shared in proportion of capitals. State with reason whether his claim is valid or not.

Question number: 15

» Accounting for Partnership Firms » Past Adjustments

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A and B are partners’ sharing profits in-proportion of 3. : . 2 With Capitals of Rs. 40, 000 and Rs. 30, 000 respectively’: Interest On Capital is. agreed at 5 % p; a. . B is to be ” allowed an annual salary of Rs. 3, 000 which. has not: been Withdrawn. During 2007 the profits for the year prior to calculation ~f Interest on Capital. But after chargin B’s salary amounted to Rs. 12, 000. A provision of 5 % of this amount is to be. made in respect of commission to the manager. Prepare an account showing the allocation of profits.

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