CBSE ACCOUNTANCY QUESTIONS FOR PRACTICE
Question 1.
A, B and C were partners in a firm, sharing profits and losses in the ratio of 2:2:1. A had personally guaranteed that in any year Sandra’s share of profit, after allowing interest on capital to all the partners @ 5% per annum and charging interest on drawings @ 4% per annum, would not be less than ₹ 10,000. The capitals of the partners on 1st April, 2021 were: A ₹ 80,000, B ₹ 50,000 and C ₹ 30,000. The net profit for the year ended 31st March, 2022, before allowing or charging any interest amounted to ₹ 40,000. A had withdrawn ₹ 4,000 on 1st April, 2021, while C withdrew ₹ 5,000 during the year. You are required to prepare the Profit and Loss Appropriation Account for the year 2022-23
Question 2.
Roshan, Mahesh, Gopi and Jai are partners sharing profits and losses in the ratio of 3:3:2:2. The balances of capital accounts on 1st April, 2021 were: Roshan ₹ 8,00,000, Mahesh ₹ 5,00,000, Gopi ₹ 6,00,000 and Jai ₹ 6,00,000. After the accounts for the year ended 31st March, 2016 were prepared, it was discovered that interest on capital @ 10% per annum as provided in the partnership deed had not been credited to the partners’ capital accounts before the distribution of profits. You are required to rectify the error by passing a single adjusting journal entry.
CBSE ACCOUNTANCY QUESTIONS FOR PRACTICE
Question 3.
Asif and Ravi are partners in a firm, sharing profits and losses in the ratio of 3:2. Their fixed capitals as on 1st April, 2021, were ₹ 6,00,000 and ₹ 4,00,000 respectively.
Their partnership deed provides for the following:
(a) Partners are to be allowed interest on their capital @ 10% per annum.
(b) They are to be charged interest on drawings @ 4% per annum.
(c) Asif is entitled to a salary of ₹ 2,000 per month.
(d) Ravi is entitled to a commission of 5% of the correct net profit of the firm before charging such commission.
(e) Asif is entitled to a rent of ₹ 3,000 per month for the use of his premises by the firm.
The net profit of the firm for the year ended 31st March, 2022, before providing for any of the above clauses was ₹ 4,00,000. Both partners withdrew ₹ 5,000 at the beginning of every month for the entire year. You are required to prepare a Profit and Loss Appropriation Account for the year ended 31st March, 2022.
Question 4.
Xen, Sam and Tim are partners in a firm. For the year ended 31st March, 2022, the profits of the firm ₹ 1,20,000, were distributed equally amongst them, without providing for the following provisions of the partnership deed:
(a) Sam’s guarantee to the firm that the firm would earn a profit of at least ₹1,35,000. Any shortfall in these profits would be personally met by him.
(b) Profits to be shared in the ratio of 2:2:1.
You are required to pass the necessary journal entries to rectify the error in accounting.
CBSE ACCOUNTANCY QUESTIONS FOR PRACTICE
Question 5.
Anita and Tony, each doing business as sole proprietors, started a partnership on 1stApril, 2021. Anita brought in Plant and Machinery valued at ₹5,00,000 whereas Tony brought in furniture costing ₹50,000 and ₹7,00,000 in cash. Since the business needed more funds, Tony gave a loan of ₹2,00,000 to the firm on 30th June, 2021. Their partnership deed provided for:
(a)Interest on capital to be allowed @10% per annum.
(b)Interest on drawings to be charged @ 6% per annum.
(c)Anita to be given a commission of 4% on the corrected net profits before charging commission.
(d) Tony to be given a salary of ₹12,000 per annum. Tony withdrew ₹5,000 at the end of every month and Anita withdrew ₹30,000 on 1st August,2021. The net profit of the firm, for the year 2021-22, after debiting Tony’s salary of ₹12,000 per annum but before considering any interest due to and due from the partners, was ₹4,00,000. You are required to prepare for the year 2021-22:
(i) Profit and Loss Appropriation Account.
(ii) Partners’ Capital Accounts.
CBSE ACCOUNTANCY QUESTIONS FOR PRACTICE
Question 6.
On March, 31, 2019 the balance in the capital accounts of Sonu, Monu an Tony, after making adjustments for profits. drawing, etc. were ₹ 8,00,000. ₹ 6,00,000 and ₹ 4,00,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @ 5 p.a. The drawings during the year were Sonu ₹ 2,00,000; Monu ₹1,50,000 and Tony, ₹ 90,000. Interest on drawings, chargeable to partners were Sonu ₹ 5000, Monu ₹ 3600 and Tony ₹ 2000. The net profit during the year amount to ₹1,20,000, The Profit sharing ratio was 3:2:1. Record necessary adjustment entry.
CBSE ACCOUNTANCY QUESTIONS FOR PRACTICE
Question 7.
On 1st April, 2019, Mita is admitted as a new partner on the following terms:
(a)The new profit sharing ratio of Smita, Punita and Mita to be 5:3:2.
(b)Provision for doubtful debts to be raised to 10% of the debtors.
(c)Punita to take over the firm’s investments (not recorded in the books) at ₹3,000.
(d)Goodwill of the firm to be valued at ₹50,000. Mita to bring in cash for her share of goodwill.
(e)50% of the goodwill to be withdrawn by the old partners.
(f)Mita to bring₹ 21,200 as capital in cash.
You are required to:
(i)Pass journal entries at the time of Mita’s admission.
(ii)Prepare the Balance Sheet of the reconstituted firm.
CBSE ACCOUNTANCY QUESTIONS FOR PRACTICE
Admission of a partner-Important Questions-4
Question 8.
Question 9.
Harish, Paresh and Mahesh were three partners sharing profits and losses in the ratio of 5:4:1. Paresh retired on 31st March, 2017. His capital as on 1st April, 2016, was ₹ 80,000.
During the year 2016-17, he made drawings of ₹ 5,000. He was to be charged interest on drawings of ₹ 100. The partnership deed provides that on the retirement of a partner, he will be entitled to:
(i) His share of capital.
(ii) Interest on capital @ 10% per annum.
(iii) His share of profit in the year of retirement.
(iv) His share of goodwill of the firm.
(v) His share in the profit/loss on revaluation of assets and liabilities.
Additional information:
(a) Paresh’s share in the profits of the firm for the year 2016-17 was ₹ 20,000.
(b) Goodwill of the firm was valued at ₹ 24,000.
(c) The firm suffered a loss of ₹ 12,000 on the revaluation of assets and liabilities.
(d) It was decided to transfer the amount due to Paresh to his loan account bearing interest @ 6% per annum.
You are required to prepare:
(i)Paresh’s Capital Account.
CBSE ACCOUNTANCY QUESTIONS FOR PRACTICE
Question 10.
Zee Ltd. purchased a running business from Rainbow Ltd. for a sum of ₹6,60,000. Zee Ltd. paid 5% of the purchase consideration by drawing a Promissory Note in favour of Rainbow Ltd. and the balance by the issue of fully paid Equity shares of ₹10 each at a premium of 10%.
The assets and liabilities of Rainbow Ltd. consisted of: (₹) Fixed Assets 6,50,000 Sundry Creditors 80,000 You are required to pass the necessary journal entries in the books of Zee Ltd.
CBSE ACCOUNTANCY QUESTIONS FOR PRACTICE
Goodwill questions for practice Class 12 ISC & CBSE
Question 11.
Ajay ,Bela and Cacu are partners in a firm .Capital accounts on 1 april 2020 stood at ₹1,00,000 , ₹80,000 and ₹60,000 .each partners withdrew ₹5,000 during the FY 2020-21.
As per the provisions of the deed:
Bela was entiltled to a salary of ₹1,000 p.m
Int. on capital was to be allowed @ 10 % p.a
Int. on drawings was to be charged @ 4% p.a
Profits and losses were to be shared in the ratio of their capitals
The net profit of ₹75,000 for the year ended 31st march 2021 was divided equally amongst the partners without providing for the terms of the deed. Pass the single adjusting journal entry to rectify the error.
CBSE ACCOUNTANCY QUESTIONS FOR PRACTICE
Question 12.
Himalaya Company Limited issued for the public subscription of 1, 20,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share payable as under:
With Application ₹ 3 per share
On allotment (including premium) ₹ 5 per share
On First call ₹ 2 per share
On Second and Final call ₹ 2 per share.
Applications were received for 1, 60,000 shares. Allotment was made on pro-rata basis.Excess money on application was adjusted against the amount due on allotment.
Rohan, whom 6,400 shares were applied, failed to pay for the two calls. These shares were subsequently forfeited after the second call was made.
All the shares forfeited were re-issued to Teena as fully paid at ₹ 7 per share. Record journal entries in the books of the company to record these transactions relating to share capital. Also show the company’s balance sheet.
Question 13.
Sagar Limited issued a prospectus inviting applications for 20,000 equity shares of ₹. 10 each at a premium of ₹. 3 per share payable as follows:
With Application ₹. 2
On Allotment (including premium) ₹. 5
On First Call ₹. 3
On Second Call ₹. 3
Applications were received for 30,000 shares and allotment was made on pro-rata basis.Money overpaid on applications was adjusted to the amount due on allotment.
Mr. Mohit whom 400 shares were allotted, failed to pay the allotment money and the first call, and his shares were forfeited after the first call.
Mr. Joly, whom 600 shares were allotted, failed to pay for the two calls and hence, his shares were forfeited. Of the shares forfeited, 800 shares were reissued to Supriya as fully paid for ₹. 9 per share, the whole of Mr. Mohit’s shares being included. Record journal entries in the books of the Company.
Question 14.
Question 15.
B.G. Ltd. issued 5,000, 12% debentures of ₹100 each at a 10 % discount on 1st April 2021. The issue was fully subscribed.
According to the terms of the issue, interest on debentures is payable half yearly on 30th September and 31st Mach and tax deducted at source is 20%. Pass necessary journal entries For the financial Year 2021-22.
Important questions of fundamentals of partnership
Important questions of fundamentals of partnership-2
Important questions of fundamentals of partnership-5
ACCOUNTING TREATMENT OF GOODWILL AT THE TIME OF ADMISSION OF A NEW PARTNER
Admission of a partner-Important Questions-3
CBSE ACCOUNTANCY QUESTIONS FOR PRACTICE