Monday, 10 April 2017


DATE OF SUBMISSION: 27-11-2017

CLICK HERE TO DOWNLOAD HOMEWORK



______________________________________________________________________________

DATE OF SUBMISSION: 08-11-2017

CLICK HERE TO DOWNLOAD HOMEWORK


______________________________________________________________________________


Submission Date : 16-9-2017


Q1
Ramu ,Tiny and Sonu are partners in a firm. They contributed Rs75,000 each as capitals three years ago and agreed to share profits and losses equally.. At that time, Sonu agreed to look after the business as other two were very busy. The profits for the last three years were Rs45,000,Rs30,000 and Rs60,000 respectively. While going through the books of accounts, Ramu noticed that profits were distributed in 1:1:2 ratio. When he enquired from Sonu about this, Sonu answered that since he looked after the business he should get more profit. Ramu disagreed and it was decided to distribute profit equally with retrospective effect for the last three years.
(a)    You are required to make necessary corrections in the books of accounts of partners by making an adjustment entry.
     (b)Identify the value which is being ignored by sonu.
Q2
Anil and Sunil are running partnership business since 2013, sharing profits and losses in the ratio of 3:2.They admitted Rohan for 3/7 share. Goodwill of the firm was valued on that date  at Rs 28,000. Rohan contributed the following assets towards payment of capital and goodwill. Cash  Rs5,000, sundry Debtors Rs10,000 ,stock Rs5,000,Machinery Rs12,000.Pass necessary journal entries to give effect to the above.
Q3
A , B and C are partners in a firm. On 1st April ,2011 their capital accounts stood at Rs4,00,000 , Rs3,00,000 and Rs2,00,000 respectively. They shared their profits  and losses in the proportion of 5:3:2 respectively. Partners are entitled to interest on capital @10% p.a and salary to B and C @Rs2,000 per month and Rs3,000 per quarter respectively as per the provisions of the partnership deed. B’s share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs50,000p.a. Any deficiency arising on that account shall be met by C. The profits for the year ended on 31st March 2012 amounted to Rs2,00,000. Prepare profit and loss appropriation account for the year ended 31st March,2012
Q4
(a)                Y Ltd forfeited 60 shares of Rs10 each,Rs8 called up for non payment of allotment money of Rs 5 per share .Out of these ,30 shares were re-issued to Sanjay at Rs 8 as fully paid up.
       (b)     Z Ltd forfeited 400 shares of Rs10 each for the non-payment of first and   final call of Rs3 per share.  Out of these 100 shares were reissued at Rs12 per share  as fully paid up. Journalise the above transactions
Q5
Write journal entries for the following transactions on Dissolution of firm:

(i)                 Realisation expenses Rs,5000 were paid by the firm.

(ii)               Loan extended by partner X  is paid now Rs10,000.

(iii)             An unrecorded assets of Rs10,000 is taken over by partner Y at Rs6,000.

(iv)             A contingent liability of Rs4,000 was paid now.

(v)               Rs1,200 is recovered from  sale of a Cycle  which was written off earlier.

(vi)             Realisation profit of Rs 10,000 is to be distributed between partners X,Y, and Z in the ratio of 5:3:2 respectively.





Submission Date : 11-9-2017

Q1
A and B are partners in a firm. They  had a dispute over interest on drawings. A wants that interest on drawings be charged @6% per annum while B does not agree to this. What should be done if there is no partnership deed?
Q2
What  do you mean  by  calls in  advance.
Q3
State one deduction that may have to be made from the amount payable to the legal representatives of a deceased partner.
Q4
How will you treat accumulated profit or losses at the time of reconstitution of a firm?
Q5
X, Y and Z are partners sharing profits and losses in the ratio of 4:3:2. Workmen Compensation Reserve had a balance of Rs2,70,000. Give the journal entry ,if a claim on account of workmen compensation is estimated at Rs1,35,000.
Q6
What journal entry is passed if unrecorded assets are realized.?
Q7
A company forfeited 20 shares  of Rs 10 each , Rs 8 called up , Rs 6 paid up .write the journal entry for forfeiture.
 Q8
State one difference between Shares and Debentures.
Q9
State any one item that is  credited to the current account of partners.
Q10
Surender, Ramesh, Naresh and Mohan are partners in a firm sharing profits in 2:1:2:1 ratio. On the retirement of Naresh ,the goodwill  of the firm was valued at Rs72,000. Surender, Ramesh and Mohan decided to share future profits equally. Pass the necessary Journal entry for the treatment of goodwill.
Q11
M Ltd purchased  machinery  for Rs 3,00,000  from R Ltd and payment was done by paying Rs40,000 in cash and the balance through issue of equity shares of Rs 100 each at premium of Rs 30.Journalise.
Q12
A company issued 50,000 shares of Rs10 each  at a premium of Rs2.Full money was   payable  on application itself.  Application were received for 70,000 shares. Pro rata allotment was done to all the applicants. Journalise.
Q13
V Ltd took over the assets of Rs 3,80,000 and Liabilities of Rs30,000 of R Ltd for a purchase consideration of Rs2,70,000.The payment was done by issuing shares of Rs100 each at par.Pass journal entries.

Submission Date : 26-8-2017


Q1
what is meant by dissolution of a partnership ?                                                                  
Q2
What are the two basis on which the share of profit till the date of death calculated  on the  death of a partner?
Q3
Differentiate between dissolution of firm and dissolution of partnership (any 1)
Q4
P Q and R are partners. R retires and his share is taken over by P and Q in the ratio of 5:3.Calculate the new profit sharing ratio .                                                     
Q5
A company forfeited 20 shares  of Rs 10 each , Rs 8 called up , Rs 6 paid up .write the journal entry for forfeiture.
Q6
Surender, Ramesh, Naresh and Mohan are partners in a firm sharing profits in 2:1:2:1 ratio. On the retirement of Naresh ,the goodwill was valued at Rs72,000. Surender, Ramesh and Mohan decided to share future profits equally. Pass the necessary Journal entry for the treatment of goodwill.
Q7
A company issued 50,000 shares of Rs10 each  at a premium of Rs2.Full money was   payable  on application itself.  Application were received for 70,000 shares. Pro rata allotrment was done to all the applicants. Journalise.
Q8
A , B and C are partners in a firm. On 1st April ,2011 their capital accounts stood at Rs4,00,000 , Rs3,00,000 and Rs2,00,000 respectively. They shared their profits  and losses in the proportion of 5:3:2 respectively. Partners are entitled to interest on capital @10% p.a and salary to B and C @Rs2,000 per month and Rs3,000 per quarter respectively as per the provisions of the partnership deed. B’s share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs50,000p.a. Any deficiency arising on that account shall be met by C. The profits for the year ended on 31st March 2012 amounted to Rs2,00,000. Prepare profit and loss appropriation account for the year ended 31st March,2012
Q9
Pass journal entries on Dissolution:
(i)                 Realisation Expenses paid Rs 1,000
(ii)               Assets realized Rs 20,000
(iii)             Assets taken over by partner X Rs 3,000
(iv)             Liabilities paid by Partner Y Rs 2,000

Q10
Following is the Balance Sheet of Sanya, Upasna and Niti as at 31st December,2012  who were sharing profits in the ratio of 2:1:1

                                                   
Liabilities
Amount
Assets
Amount
Sundry Creditors
15,000
Tools
  5,000
Reserve Fund
16,000
furniture
40,000
Capital A/C:
Sanya                 -50,000
Upasna              -25,000
Niti                    -25,000



1,00,000
Stock
 Debtors
Cash at Bank
Cash in Hand
30,000
30,000
25,000
  1,000

1,31,000

1,31,000
Sanya died on 31st march ,2013. Under the Partnership agreement, the executor of sanya was entitled to :
(i)                 Amount standing to the credit of her Capital Account.
(ii)               Interest on Capital at the rate of 6% Per annum.
(iii)             Goodwill of the firm is valued at Rs15,000.
(iv)             Her drawings upto the date of death Rs 5,000.
(v)               Her share of profit upto the Date of death calculated on the basis of last years profits which was Rs12,000.
(vi)             Half amount due to executors  would be paid in cash and the remaining amount is transferred to executors loan account.
(vii)           Prepare Sanya’s  account to be rendered to his executors .

Q11
J Ltd has been registered with an authorized capital of Rs2,00,000 divided into 20000 shares of Rs10 each  of which 10000 shares were offered for public subscription  payable as under:
 Application Rs 3 ; Allotment Rs5 and balance in first and final call.
    Applications were received for 18,000 shares of which application for 3000 shares were rejected. The rest of the applications were allotted 10000 shares on pro-rata basis. Excess application money was transferred to share allotment account.

  All money were duly received except from sachin , a holder of 200 shares, who failed to pay allotment money and first call money. His shares were later on forfeited. Journalise.
Q12
A and B are partners with profit sharing ratio of 3:1

                                            Balance Sheet an at 31st December ,2015

Liabilities
Amount
Assets
Amount
Creditors
2,00,000
 Cash
  30,000
Bills Payable
   40,000
Bank
  50,000
General reserve
   40,000
Debtors
  60,000
Profit and Loss
   20,000
Building
2,00,000
Outstanding expenses
   20,000
Machinery
1,00,000
Capital A/C:
A-    1,00,000
B-    1,00,000


2,00,000
Investment
Patent
Goodwill
   40,000
   20,000
   20,000

5,20,000

5,20,000


 Adjustments:
(i)                 C comes for 1/5th of share and brings Capital Rs80,000 and Premium for goodwill Rs20,000.
(ii)               Building increased by 20 %.
(iii)             Outstanding expenses valued at Rs25,000.
(iv)             Provide 5% provision for discount on creditors.
(v)               Make a provision of 10% for doubtful debts.
(vi)             Capital account of A and B adjusted in the new ratio on the basis of C’s Capital and difference adjusted in current account.
(vii)           Half the premium is withdrawn by old Partners.
                                     Prepare revaluation account, partners capital account and the  Balance Sheet of the new firm.

Submission Date : 20-8-2017
                                      .
Q1
A company issued 50,000 shares of Rs10 each  at a premium of Rs2.Full money was   payable  on application itself.  Application were received for 70,000 shares. Pro rata allotment was done to all the applicants. Journalise.
Q2
G Ltd invited applications for issuing 1,00,000 equity shares of Rs10 each at a premium of Rs3 per share .The whole amount was payable on application. The issue was oversubscribed by 30,000 shares and the allotment was made on prorate basis. Pass the necessary journal entries in the books of company.
Q3
 B ltd made the first call of Rs2 per share on 50,000 equity shares @2 per share .Ashok holding 800 shares paid the second and final call amount along with the first call money. The second and final call amount was Rs3 per share. Pass the journal entry.
Q4
J Ltd has been registered with an authorized capital of Rs2,00,000 divided into 2000 shares of Rs100 each  of which 1000 shares were offered for public subscription at a premium of Rs50 per share payable as under: Application-Rs30; Allotment Rs 70(including premium); First call Rs20; final call Rs30.
    Applications were received for 1,800 shares of which application for 300 shares were rejected. The rest of the applications were allotted 1000 shares on pro-rata basis. Excess application money was transferred to share allotment account.
All money were duly received except from sachin , a holder of 200 shares, who failed to pay allotment money and first call money.
Q5
J ltd issued 60,000 shares of Rs10 each at a premium of Rs2 per share payable as Rs on application,Rs5 (including premium) on Allotment and the balance on first and final call. applications were received for 82,000 shares. The directors allotted the shares as follows:
(A)   Applicants of 30,000 shares                            20,000 shares
(B)   Applicants of 50,000 shares                            40,000 shares
(C)   Applicants of 2,000 shares                               nil
                   Ramesh who had applied for 800 shares in category (A) and suresh who was allotted 600 shares in Category 9B) failed to pay the allotment money.      Calculate the amount received on allotment and write the journal entries.
                                                                                                                 
DATE OF SUBMISSION : 3-06-2017
Q1
During the year ended 31st December 2016 a partner made the following drawings:
January 31  Rs2,000;  April, 1  Rs5,000;  July, 31  Rs4,000;  December,1  Rs3,000;   December 31  Rs2,000.
Calculate interest on drawings when it is charged @10% p.a.

Q2.  
A  and B are partners sharing profits in the proportion of 3:2 with capital of Rs40,000 and Rs30,000 respectively. Interest on capital is agreed at 5% p.a. B is to be allowed an annual salary of Rs3,000 which has not been withdrawn. During 2016the profit for the year prior to calculation of interest on capital but after charging B’s salary amounted to Rs12,000. A provision of 5% of this amount is to be made in respect of commission to the manager.
    Prepare an account showing allocation of profits.

Q3.  
A, B and C were in partnership sharing profits 4:2:1 respectively. It was provided that in no case C’s share of profits should be less than Rs7,500.
The profits for the year 1991amount to Rs31,500. You are required to show the appropriation amongst the partners. Profit and loss appropriation account is not required.

Q4
Amit and Vijay started partnership business on 1st January 1991. Their capital contributions were Rs2,00,000 and Rs1,50,000 respectively. The partnership deed provided inter alia that:
(i)                  Interest on capital at 10% p.a.
(ii)                Amit to get a salary of Rs2000 p.m. and Vijay Rs3000 p.m.
(iii)               Profits are to be shared in the ratio 3:2.
The profits for the year ended 31st December 1991 before making above appropriation were Rs2,16,000. Interest on drawings amounted to Rs2200 for Amit and Rs2500 for Vijay.
                   Prepare Profit and loss Appropriation account
Q5.   
P and Q started business in partnership without an agreement. In what ratio will they share the losses of the new firm? P wants interest on loan he has given to the firm. Q does not want interest to be paid to P. How will you resolve their dispute?

_________________________________________________________________________________

 Submission Date : 10-8-2017
  
                                          
Q1
Following is the balance sheet of Anju and Manju who are partners ina firm sharing profits in the ratio of 3:2 as at 31-3-2016:
Liabilities
Amount
Assets
Amount
Creditors
General Reserve
Anju’s Capital
Manju’s Capital
31,500
1,250
5,000
4,000
Plant and Machinery
Stock
Debtors                            10,000
Less prov. For bad debts      5,00
Bank
Profit and loss account
21,000
3,000

9,500
5,750
2,500

41,750

41,750

The firm was dissolved on 31-3-2016. Plant and Machinery realized Rs16,000 and stock Rs2,500. Rs9,000 were collected from debtors. Creditors were paid Rs30,000 in full settlement.
     Prepare Realization account, Capital accounts of Anju and Manju and Bank account in the books of the firm.
Q2
A  and B were partners in a firm from 1-4-2015 with capitals of Rs60,000 and Rs40,000 respectively. They shared profits and losses in the ratio of 3:2. They carried on business for two years . In the first year they made a profit of Rs50,000 and in second year ending 31st March 2017, they incurred a loss of Rs20,000. As the business was no longer profitable they decided to wind up. Creditors on that date were Rs20,000. The partners withdraw Rs8,000 each per year for their personal expenses. The assets realized Rs1,00,000.The expenses on realization was Rs3,000.
Prepare Realization account and show your working clearly.
Q3
Pass necessary journal entries in each of the following alternative cases:
(i)                  Expense of realization amounted Rs7,400.
(ii)                Expense of Realization Rs7,400 were paid by Ravi, a partner.
(iii)               Realization expenses were to borne by a partner Deepak, for which he was allowed a commission of 2% of net cash realized from dissolution. The net cash realized from dissolution was Rs1,00,000 and actual expenses were Rs7,400.
Expense of Realization Rs7,400 were to be borne by Khan, partner. Khan use firm’s cash for paying these expenses.
Q4
A, B and C were partners in a firm sharing profits in the ratio of 4:3:3. The firm was dissolved on 28-2-2015. After transfer of assets and external liabilities to Realization account the following transactions took place:
1)      K, a creditor, to whom Rs6,000 were due to be paid, accepted office equipment at Rs4,000
         and the balance was paid to him in cash
2)      L, a creditor, to him Rs16,000 were due to be paid, took over machinery at Rs20,000. Balance was paid by him in cash.
3)      Unrecorded liability of the firm Rs7,800 was paid by A
The loss on dissolution was Rs10,000.
Q5
A, B and C who shared profits in the ratio 3:3:1 agreed upon the dissolution of their partnership firm on 31-12-2014, on which date their balance sheet was as follows:
Liabilities
Amount
Assets
Amount
A’s capital
B’s capital
Mrs. A’s Loan
Creditors
Joint life Policy fund
Investment fluctuation fund
50,000
10,000
8,000
20,500
14,000
6,000
Machinery
Stock
Investments
Joint life policy
Debtors                        9,4000
Less prov. For D/d            700
Cash at Bank
C’s Capital
40,000
8,050
20,830
14,000

8,700
5,420
11,500

1,08,500

1,08,500

(i)                  The life policy was surrendered for Rs15,000
(ii)                The investments were taken over by A for Rs17,500. A  also agreed to discharge his  wife’s loan.
(iii)               B took over stock at Rs7,500
(i)                  Machinery realized Rs50,000, and Debtors realized 50% of their book value.
(ii)                The expenses of realization amounted to Rs500.
Prepare Realization account, Cash account and Capital accounts to close the books of the firm.


 Submission Date :  4-8-2017

                                      
Q1
A,B and C are equal partners in a firm shoes books are closed on 31st December every year. A died on 31st March 2016 and according to the agreement his share of profit upto the date of death is to be calculated on the basis of the average profits of the last three years. Net profits of the last three years were Rs8000; Rs11,000 and Rs17,000. Calculate A’s share of profit and pass the necessary journal entry.
Q2
R, S and T were partners in a firm sharing profits in the ratio of 4:3:2. They had a Joint Life Policy of Rs1,80,000 on which annual premium paid was considered as an ordinary expense. On 1-1-2016 T died. On that date there was a debit balance of Rs45,000 in their profit and loss account. Pass necessary journal entries on T’s death.
Q3
X,Y and Z were partners in a firm sharing profits in the ratio of 3:2:1. The firm closes its accounts on 31st March every year. X died on 30-9-2004. On that date credit balance in his capital account was Rs30000. The firm had a general Reserve of Rs16000 on that date. The partnership deed provided that on the death of a partner:
(i)Interest on capital at the rate of 10% p.a. shall be allowed.
(ii)Goodwill will be calculated on the basis of 3 years’ purchase of four years average profits which were as follows:
Profits for the years ending 31st March 2003, 2002, 2001 and 2000 were Rs14000, Rs16000, Rs20000 and Rs10000 respectively.
(iii)The deceased partner’s share of profits up to the date of death will be calculated on the basis of last year’s profits.
  Prepare X’s Capital account to be shown to his executors.
Q4
Pass necessary journal entries for the following transactions at the time of dissolution of the firm:
(a)     Loan of Rs10,000 advanced by a partner to the firm was refunded.
(b)    X, a partner takes over an unrecorded asset(typewriter) at Rs300.
(c)     Undistributed Balance(Debit) of Profit and Loss account Rs30,000. The firm has three partners X,Y and Z.
(d)    The assets of the firm realized Rs1,25,000
(e)    Y who undertakes to carryout the dissolution proceedings is paid Rs2,000 for the same.
(f)      Creditors paid Rs28,000 in full settlement of their account of Rs30,000.

Q5
Pass necessary journal entries for the following transactions:
(i)              Debtors of Rs20,000 were taken over by L for Rs18,000
(i)                  Creditors of Rs15,000 were paid at a discount of 5%
(ii)                Expenses of dissolution Rs1,000 were paid by M
(iii)               Loss on realization was Rs7,000.

                                                                                                      
  Submission Date :  28-7-2017

Q1
A, B and C are partners sharing profits in the ratio4:3:2. Their Balance sheet on 31st March 2015 was as follows:
Liabilities
Rs
Assets
Rs
Creditors
33,000
Cash
10,000
General Reserve
27,000
Debtors
15,000
A’s Capital
70,000
Stock
30,000
B’s capital
45,000
Machinery
50,000
C’s capital
30,000
Land and Building
1,00,000

205,000

2,05,000

The firm had a joint policy for Rs 40,000. The surrender value of the policy was Rs13,500 as on 31st March 2015. B retires on the above date on the following conditions:
(a)    Land and building be appreciated by 20%.
(b)   Goodwill is to be valued at Rs18,000.
(c)    A provision for doubtful debts of 5% is to be created and machinery be written down by 10% and stock by 5%.
(d)   A provision of Rs15,00 be made in respect of legal charges.
B is to be paid Rs5,000 and balance be transferred to his loan account. Prepare Revaluation account, Partners’ capital accounts and Balance sheet of A and C.
Q2
E, F and G were partners in a firm sharing profits in 2:2:1 ratio. On 28th February 2017 F retired. On the date of his retirement the balance in his capital account was Rs70,000. The other assets of the firm on that date were as follows:
Cash Rs5,000; Buildings Rs2,00,000; Plant and Machinery Rs80,000; Stock Rs30,000; Debtors Rs40,000 and Investments Rs30,000.
The following was agreed between the partners on F’s retirement:
(a)    Building to be appreciated by 20%.
(b)   Plant and machinery to be depreciated by 10%.
(c)    Stock was overvalued by Rs5000, Investments valued at Rs35,000.
(d)   A provision of 5% on debtors to be created for bad and doubtful debts.
(e)   An old photocopier previously written off was sold for Rs5,000.
(f)     Partners had to pay Rs8000 to the family of an employee who died in an accident.
F was paid Rs5800 in cash and the balance in three equal yearly instalments with interest @10% p.a. starting from 1-4-2017.
Pass the necessary journal entries to record the above transactions, Prepare Revaluation account and F’s Loan account till it is finally paid. The firm closes its books on 31st March every year.
Q3
Sita, Geeta and Meeta were partners in a firm sharing profits in the ratio of 7:6:7. Geeta retired and her share was divided equally between Sita and Meeta. Calculate the new profits sharing ratio of Sita and Meeta
Q4
State any two items of deduction that may have to be made from the amount payable to a retiring partner.
Q5
Bimla and Nutan were partners. The partnership deed provides inter alia  :-
(i)                  That the accounts be balanced on 31st December each year.
(ii)                That the profits be divided as follows:
                  Bimla one-half, Nutan one-third and carried to Reserve account one-sixth.
(iii)               That in the event death of a partner, his executor will be entitled to the following:
(a)    The capital to her credit on the date of death.
(b)   Her proportion of profit to date of death based on the average profits of the last three completed years.
(c)    Her share of goodwill based on three years’ purchase of the average profits of the three preceding completed years.
(On 31st December 2016 the trial Balance was as under)

Rs
Rs
Bimla’s Capital

90,000
Nutan’s Capital

60,000
Reserves

30,000
Bills Receivables
50,000

Investments
40,000

Cash
1,10,000

Creditors

20,000

2,00,000
2,00,000

 The profits for the three years were:2014-Rs42000, 2015-Rs39000 and 2016-Rs45000. Nutan died on 1st May 2017. Show the calculation of Nutan’s :
(i) share of profits , (ii) Share of goodwill and (iii)draw up Nutan’s executors account as would appear in firm’s ledger transferring the amount to her loan account

        Submission Date :  23-7-2017 
                              .
Q1
P,Q and R are partners sharing profits and losses in the ratio of 5:3:2. From 1st January 2016, they decide to share profits and losses in equal proportions. The partnership deed provides that in the event of any change in profit sharing ratio, the goodwill should be valued at three years’ purchase of the average of five years’ profits. The profits and losses of the preceding five years are:
Profits: 2011-Rs60,000; 2012-Rs1,50,000; 2013-Rs1,70,000; 2014- Rs1,90,000;Loss: 2015-Rs70,000.
Give the necessary journal entry to record the above change.
Q2
J and K are Partners in a firm. Their capitals are J `3,00,000 and K `2,00,000. During the year ended 31-3-2010 the firm earned a profit of `1,50,000. Assuming that normal rate of return is 20%, calculate the value of goodwill of the firm:
(i)                  By capitalization method and
By super profit method if the goodwill is valued at 2 years purchase of super profits.
Q3
, Y and Z are partners sharing profits and losses in the ratio of 4:3:1. Their Balance sheet as on
31st December 2014 was as under:
LIABILITIES
RS
ASSETS
RS
Sundry creditors
7,000
Cash
9,000
Bills payable
4,000
Stock
7,500
General reserve
8,000
Joint Life Policy
15,000
X’s capital
20,000
Debtors                               13,000
Less Provision for bad debt    500

12,500
Y’s capital
30,000
Investments
10,000
Z’s capital
20,000
Plant and machinery
12,000


Buildings
23,000

89,000

89,000
   On the above date Y retires from the firm selling his share of profits to X for Rs3600 and to Z for Rs4500, in the ratio of 4:5
       Stock is to be appreciated by 20% and Building by10%. Joint Life Policy is surrendered to the Insurance company for Rs7,000. Provision for doubtful debts is increased to 10%. Investments are sold for Rs 23,000.
      The capitals of the newly constituted firm is fixed at Rs60,000 to be divided among X and Z in the profit sharing ratio. Adjustments to be made in cash. Y is paid the amount due.
      Calculate the new profit sharing ratio and prepare Revaluation account, Cash account, Partners’ capital accounts and Balance sheet of the firm.
Q4
Kangli, Mangli and sanvali are partners sharing profits in the ratio of 4:3:2. Kangli retires. Assuming that Mangli and sanvali will share profits in future in the ratio of 5:3, determine the gaining ratio.
Q5
Kamla, Bmla Sarla and Nirmala are partners  in a firm sharing profits and losses in the ratio of 2:1:2:1. On Kamla’s retirement the goodewill of the firm is valued at Rs36,000. Bimla and Sarla and Nirmala decided to share future profits equally. Pass the necessary journal entry for the treatment of goodwill without opening “goodwill account”.
Q6
A,B and C have been sharing profits and loses in the ratio of 5:3:2. His share is taken over by B and C in the ratio of 2:1. Calculate new profit sharing ratio

 
        Submission Date : 13-7-2017        
                       
Q1
Narender and Surender were partneres in a firm sharing profits in the ratio of 5:3. they admitted Ravinder as a new partner. The new ratio between Narender, Surender and Ravinder will be 1:1:2. Ravinder brought Rs20,000 for his share of goodwill premium. Pass necessary journal entries for the treatment of goodwill.
Q2
A and B were partners in a firm sharing profits and losses in the ratio of 3:1. They admitted C as a new partner for 10% share in profits and losses. Calculate the new profits sharing ratio between A, B and C
Q3
X and Y were partners in a firm sharing profits in the ratio of 3:2. On 10-3-2014 they admitted Z as a new partner in the firm for 3/13th share in the profits. The new profit sharing will be 5:5:3. Z contributed the following assets towards his capital and for his share of goodwill:
Stock Rs40000; Debtors Rs60000; Land Rs100000 and plant and machinery Rs60000. On the date of admission of Z the goodwill of the firm was valued at Rs520000 which is not to appear in the books.
Pass necessary journal entries in the books of the firm on Z’s admission. Show your calculations clearly
Q4
X and Y were partners in a firm sharing profits in the ratio of 3:1. On 1-3-2017 they admitted Z as a partner for 1/4th share in the profits The new profit sharing ratio will be 2:1:1. Z brought in Rs200000 as his capital and Rs50000 for his share of goodwill in cash. On Z’s admission goodwill appeared in the books of the firm at Rs30000.
Pass necessary journal entries in the books of the firm on Z’s admission.
Q5
On 31st December 2014 the Balance sheet of A and B who are partners in a firm sharing profits in the ratio of 3:2 as follows:
Liabilities
Amount
Assets
Amount
Capital accounts:

Plant and Machinery
10000
 A           
10000
Land and Building
8000
 B
8000
Debtors                      12000
Less Prov. For BD        1000

11000
General Reserve
15000
Stock
12000
Workmen’s Compensation fund
5000
Cash
9000
Creditors
12000



50000

50000

They agreed to admit C into partnership for 1/5th share of profits on the following terms:
(i)                  Provision for bad debts would be increased by Rs2000.
(ii)                The value of Land and building be increased to Rs18000.
(iii)               The value of stock would be increased by Rs4000.
(iv)              The liability against workmen’s compensation fund is determined at Rs2000.
(v)                C brought in his share of goodwill Rs10000 in cash.
(vi)              C would bring further cash as would make his capital equal to 20% of the total capital of the new firm, after the above revaluation and adjustments are carried out.
Prepare Revaluation Account, Partners’ Capital accounts and Balance sheet of the firm after C’s admission.

        Submission Date : 5-7-2017                                                      
                                  
Q1
A and B are partners sharing profits in the ratio of 3:2. they admit C into the firm for 3/7th share which he takes 2/7th from A and 1/7th from B and brings Rs1,000 as premium out of his share of Rs1800. The new profit sharing ratio A, B and C is 11:9:15 respectively.
Q2
A and B are partners in a firm. They admit C into the firm. The goodwill for the purpose is to be calculated at 2 years’ purchase of the average normal profit of the last three years which were Rs10,000; Rs15,000, and Rs30,000 respectively. Second years’ profits included profits on sale of machinery Rs10,000. Find the value of goodwill of the firm on C’s admission.
Q3
N is admitted as a new partner in a firm during 2016 for 1/5th share of the profits. Profits for the year ending 31st December 2016 were Rs30,000. Find N’s share in the profits if the sales of the firm for the year were Rs1,00,000 out of which Rs60,000 were made after N’s admission.
Q4
Ramesh and Mohan were partners in a firm sharing profits in the ratio of 3:2. From 1st January 2014 they decided to share profits equally. The value of goodwill of the firm as on that date was Rs30,000. Show the necessary journal entries for the treatment of the goodwill due to change in the profits sharing ratio
Q5
Khanna and Seth are partners in a firm sharing profits in the ratio of 2:1. The following was the Balance sheet of the firm as on 31-12-2014:

Liabilities
Rs
Assets
Rs
Sundry creditors
20,000
Cash
1,000
Bills payable
5,000
Bank
10,000
Khanna capital
40,000
Debtors                            20500
Less provision                      500

20,000
Seth capital
30,000
Stock
15,000


Plant
14,000


Building
35,000

95,000

95,000

They agree to admit Arora with effect from1st January 2015 with 1/4th share in profits on the following terms:
(i)                  Arora will bring in capital to the extent of 1/4th of the total capital of the new firm after all adjustments have been made.
(ii)                Buildings are to be appreciated by Rs15,000 and plant is to be depreciated by Rs3,000.
(iii)               The provision for doubtful debts is to be raised toRs1700.
(iv)              The goodwill of the firm has been valued at Rs18,000.
Prepare the Revaluation account, Partners’ Capital accounts and the Balance sheet of the firm after Arora’s admission.
Q6
A and B are partners sharing profits and losses equally. They admit Ca s a new partner on paying his Rs4000 as premium for goodwill out of his share of Rs7,200 for 1/4th share in profits. Goodwill account appears in the books at Rs24,000. Partners’ decide that goodwill should not appear in new firm’s books.
Give journal entries to record the above arrangements

                                                                                                  
                                                         
.Submission  Date : 7-6-2017

Q1.  
P,Q and R are partners in a firm sharing profits and losses in the ratio of 2:5:3. Their fixed capital were Rs2,00,000, Rs3,00,000 and Rs3,00,000 respectively. For the year 2016 interest on capital was credited to them @12% instead of 10%. Show your working notes clearly and pass the necessary adjustment entry.

Q2
X, Y and Z  are partners in a firm. Their capital accounts stood at Rs30,000; Rs15,000 and Rs15,000 respectively on 1st January 2016.
As per the provisions of the deed:
(i)                  Z was to be allowed a remuneration of Rs3000 p.a.
(ii)                Interest at 5% p.a. was to be provided on capital
(iii)               Profits were to be divided in the ratio of 2:2:1.
Ignoring the above terms, the net profits of Rs18,000 for the year ended 1996 was divided among the partners equally.
Pass an adjustment entry to adjust the error. Show your working clearly.

Q3
M and N are partners in a firm. M has given a loan of Rs12,000 to the firm on 1st April 2014. The partnership deed is silent on the question of provision of interest on partners’ loan. Compute the amount of interest payable on the loan advanced by M to the firm, assuming the books are closed on 31st December each year.
Q4
X, Y and Z were partners, sharing profits in the ratio of 2:2:1. Z was guaranteed a minimum profit of Rs20,000. The profits of the firm for the year ended 31-3-2016 were Rs80,000. Prepare P&L appropriation account
Q5
A, B and C were partners in a firm sharing profits and losses in the ratio of 2:3:5. Their capitals were fixed at Rs15,00,000, Rs30,00,000 and Rs60,00,000. For the year 2016 interest on capital was credited to them @12% instead of 10%. Showing your working notes clearly pass the necessary adjustment entry
Q6
, B and C were partners in a firm sharing profits equally. After division of profits for the year ended 31-3-2017 their capitals were Rs3,00,000; R2,00,000 and Rs1,00,000 respectively. During year they withdrew Rs15,000 each. The profits of the year was Rs60,000. The partnership deed provided that interest on capital will be allowed @6% p.a. While preparing final accounts interest on partners’ capital was not allowed.
You are required to calculate the capitals of A, B and C as on 1-4-2017 and pass the necessary adjustment entry for providing interest on capital. Show your working clearly.


                                            Submission Date : 13-6-2017

Q1
A, B and C were partners in a firm sharing profits in the ratio of 5:3:2. On 1-1-2015 they decided to share the profits equally. It was agreed that the change be carried out retrospectively for the last 4 years. The profits for the last 5 years were as follows:
Year ended                                Profits (Rs)
2000                                                                                        50000
2001                                                                                        40000
2002                                                                                        10000(loss)
2003                                                                                        60000
2004                                                                                        100000
   Pass necessary adjustment entry.

Q2
How does the factor “quality of product” affect the goodwill of a partner?
Q3
How does the factor “Location” affect the goodwill of a partner?
Q4
How does the factor “Efficiency of Management” affect the goodwill of a partner?
Q5
Where would you record interest on capital when capitals are fluctuating?
Q6
Find out the new ratio.
(i)                  A and B are partners. They admit C for 1/4th share. In future the ratio between A 
            and B would be 2:1.
(i)                  A and B are partners sharing profits in the ratio of 3:2. They admit C for 3/7th profit which he acquires 2/7th from A and 1/7th from B.
K, L and M are partners sharing in the ratio of 3:2:1. They admit N for 1/6th share. M would retain his original share
Q7
A firm earned net profits during the last five years as follows:
I- Rs7,000, II – Rs6,500; III – Rs8,000; IV – Rs7,500; V – Rs6,000
The capital investment of the firm is Rs.40,000. A fair return  on a capital in the market is 12%. Find out the value of goodwill of the business if it based on 3 year purchase of average super profit of past five years.

Q8
A and B are partners sharing profits in the ratio 3:2. C is admitted as a partner. The new profit sharing ratio among A, B and C is 5:3:2. Find the Sacrificing ratio.

                                 Submission Date : 20-6-2017

Q1
Sachin and Kapil are partners sharing profits and losses in the ratio 2:1. They agree to admit Amit into partnership who will bring Rs24,000 for 1/4th share of goodwill. Make necessary journal entries to record the above transaction.
Q2
A firm earned profit of  Rs8,000, Rs10,000, Rs12,000 and Rs16,000 during 1989,1990,1991 and 1992 respectively. The firm has capital investment of Rs50,000. A fair rate of return on investment is 15% p.a. Calculate goodwill of the firm based on three years’ purchase of average super profits of last four years
Q3
A and B are partners sharing profits in the ratio of 4:1. A surrenders 1/4th of his share and B surrenders ½ of his share in favour of C, a new partner. What is the new ratio and the sacrificing ratio.
Q4
A and B are partners sharing profits in the ratio of 3:2. they admit C into the firm for 3/7th share which he takes 2/7th from A and 1/7th from B and brings Rs1,000 as premium out of his share of Rs1800. Goodwill account does not appear in the books of A and B but the new firm decides that goodwill should appear in the books of the new firm at a value of Rs1610. The new profit sharing ratio A, B and C is 11:9:15 respectively.
Q5
The Balance sheet of A and B as on 31st March 2015 is given below:
Liabilities
Rs
Assets
Rs
A’s capital
60,000
Freehold property
20,000
B’s Capital
30,000
Furniture
6,000
General Reserve
24,000
Stock
12,000
Creditors
16,000
Debtors
80,000


Cash
12,000

130,000

130,000

A and B share profits in the ratio of 2:1. They agree to admit P into the firm subject to the following terms and conditions:
(i)P will bring in Rs21,000 of which Rs9,000 will be treated as his share of goodwill to be retained in the business.
(ii)P will be entitled to 1/4th share of profits of the firm.
(iii)A reserve for bad and doubtful debts is to be created at 3% on debtors.
(iv)Furniture is to be depreciated by 5%.
(v)Stock is to be revalued at Rs10,500.
Prepare Revaluation account, Capital accounts and Opening Balance sheet of the new firm.
                    
                                                         Submission Date : 27-6-2017
 .
Q1
A,B and C are partners sharing profits in the ratio of 5:3:2. Goodwill is appearing in the books at Rs50,000. D is admitted to the partnership, the new profits sharing ratio between A, B, C and D being 3:3:2:2
Give journal entries for goodwill if if the new partner D brings Rs1,00,000 for capital and cash for his share of goodwill. The goodwill of the firm is valued at Rs1,20,000 and it is not to appear in the books after D’s admission.
Q2
Balance sheet of A, B and C sharing profits in the ratio of 3:2:1 is given below:
Liabilities
Rs
Assets
Rs
A’s capital
4,00,000
Bank
40,000
B’s Capital
4,00,000
Debtors                         2,00,000
Less provision                    3,000

1,97,000
C’s Capital
2,00,000
Stock
2,03,000
Contingency reserve
1,20,000
Furniture
30,000
Trade creditors
1,80,000
Machinery
5,30,000


Building
3,00,000

13,00,000

13,00,000

It was decided to admit D into partnership on the following terms and conditions:
(i)                  New profits sharing ratio between A,B, C and D will be 3:3:2:2.
(ii)                Goodwill of the firm is valued at Rs3,00,000. D brings his share of goodwill in cash which is credited to the old partners.
(iii)               D brings Rs1,50,000 as his share of capital
(iv)              Contingency reserve is not required any more.
(v)                Provision for bad and doubtful debts is to be raise to 5% on debtors.
(vi)              Machinery is revalued at Rs5,00,000 and Building is revalued atRs3,67,000.
Prepare Revaluation account, Capital accounts of A,B, C and D  and the Balance sheet of the firm after D’s admission. Also show the calculations for goodwill.
Q3
A firm has two partners B and C sharing profits in the ratio3:2. They admit A into the firm on 1st January 2017,when the Balance sheet of the firm was as follows:

Liabilities
Rs
Assets
Rs
B’s capital
30,000
Machinery
18,000
C’s capital
10,000
Furniture
18,000
Profit and loss account
7,500
Investments
9,000
Creditors
7,000
Stock
6,000
Bills payable
2,500
Debtors
4,000


Cash
2,000

57,000

57,000

Terms of admission are as under:
(i)                  A is to bring Rs20,000 as his capital for 1/3rd share of profits and Rs3,500 as his share of goodwill.
(ii)                Value of machinery and Stock are to be reduced by Rs7,000 and Rs1,000 respectively and the value of furniture to be increased by Rs3000.
(iii)               Capitals of the partners shall be proportionate to their profit sharing ratio taking A’s capital as the base. Excess capital is to be withdrawn in cash by the partners concerned and the deficiency is to be made up by bringing cash.
Prepare Revaluation account , Partners’ capital accounts and the Balance sheet of the firm after the above adjustments.
Q4
A and B are partners sharing profits in the ratio of 4:1. A surrenders 1/4th of his share and B surrenders ½ of his share in favour of C, a new partner. What is the new ratio and the sacrificing ratio.
Q5
A and B are partners with capitals of Rs13,000 and Rs9,000 respectively. They admit C as a partner with 1/5th share in the profits of the firm. C brings Rs8,000 as his capital. Give journal entries to record goodwill.
                                                   


                                 Date of home work              :   2-6-2017

                                 Date of submission               :   8-6-2017                

Q1
Name the account prepared to show the distribution of profit among the partners of a firm
Q2
Name any two items which will be credited to current account of a partner.
Q3
How would you calculate interest on drawings if a regular amount is drawn at the end of each quarter?
Q4
X a partner of a firm has contributed Rs30,000 as a loan on 1st October 2012 .The partnership deed is silent on the question of interest on loans from partners. compute interest on loan assuming that the books are closed on 31st December each year.
Q5
P and Q are partners  and  they do not have a specific partnership deed. P has contributed maximum capital and demands interest on capital at10%p.a. and the share of profit in the capital ratio. But Q does not agree with him . How will you settle the dispute.
Q6
Define partnership. State any  four  rights of a partner.
Q7
What is a partnership deed? State any four important  contents of a partnership deed.
Q8
Differentiate between fixed capital account and fluctuating capital account.
Q9
Write journal entries relating to : Interest on capital, interest on drawings.
Q10
  Ram and Shyam are partners in a firm sharing profits and losses in the ratio of 7:3.According to the partnership deed, Ram was to be paid salary of Rs5,000 per month and Shyam to get Commission of Rs 40,000 p.a. Interest on Capital was to be allowed @5%p.a .Interest on  partners drawings @6%p.a. Ram’s Drawings being Rs 10,000 and Shyam’s drawings being Rs8,000.Their capitals were Rs50,000 and Rs40,000 respectively. 10 percent of the divisible profits is to be transferred to Reserve. The firm earned a profit of Rs70,260 for the year ended 31st March 2013.Prepare the Profit and Loss Appropriation Account.                                           

Q11
Shobha  and Vishnu are partners with capitals of Rs15,00,000 and Rs10,00,000 respectively. They agree to share profits in the ratio of 3:2.Show how the following transactions will be recorded in the capital accounts of the partners in case the capitals are fixed .and the books are closed on March 31st each year.

Particulars
Shobha
Vishnu
Additional capit6al introduced on July1
3,00,000
2,00,000
Interest on capital
5%p.a
5%p.a
Drawings
30,000
20,000
Interest on drawings
1,800
1,200
salary
20,000

Commission
10,000
7,000
Net divisible Loss for the year Rs1,00,000


                   








                             
                                 SUMMER HOLIDAY HOME WORK  -2017
                                       ACCOUNTANCY- XII

Q1 Ajay,Vijay and Sanjay  are partners sharing profits in the ratio of 5:3:2.Mohan joins the firm and the new ratio between Ajay, Vijay, Sanjay and Mohan 4:3:2:1 respectively. Calculate the sacrificing ratio.

Q2 P , Q and R share  profits as 4:3:2 respectively. From 1-4-2015 they decide to change their ratio to 2:2:1. Due to this calculate the gain or sacrifice of each partners.

Q3Define goodwill.

Q4 Pawan and Jayashree are partners. Bindu is admitted for 1/4th share. What is the ratio in which Pawan and Jayashree will sacrifice their share in favour of Bindu.

Q5 State any two circumstances under which a partnership firm is reconstituted.

Q6. P ,Q and R are partners in a firm. They had omitted interest on capital @10% p.a. for three years ended 31st March ,2016. Their fixed capitals on which interest was to be calculated throughout  were:
A –Rs 2,00,000
B- Rs 1,60,000
C-Rs 1,40,000 . Give adjustment journal Entry with working notes.

Q7 Anu and Manu  share profits in the ratio of 3:1 respectively and their adjusted combined Capitals were Rs45,000 and Rs15,000. They admit Tinu for 1/5th share  who has to bring sufficient capital  equal to 1/5th of the  capital of the firm based on the adjusted capital of the  exisiting partners.  Calculate the amount of  capital to be brought in by Tinu

Q8 P and Q are partners sharing profits in the ratio of 2:3.R is admitted for 1/5th share in the profits of the firm. He brings Rs1,00,000 towards his capital. The capital of  P and Q were Rs 2,00,000 and Rs 1,50,000 respectively. Pass journal entry for goodwill and capital.

Q9. Atul and Gokul are sharing profits in the ratio 3:2 respectively. They admit their friend Chandu. Atul gives 1/3rd of his share and Gokul gives ½ of his share in  favour of chandu. Chandu  brings half of  his share of goodwill in cash. Goodwill of the firm is valued at Rs40,000. He contributes Rs30,000 as his capital. Give journal entries in the books of firm to record the above transactions.

Q10 M and S were partners sharing profits in the ratio of 2:1 respectively. T is admitted  for 1/3rd share .T brings following assets towards goodwill and capital:
  Cash Rs  25,000 ;  Debtors  Rs15,000 ;  stock  Rs50,000 ; building Rs2,00,000.Goodwill of the firm is valued at Rs90,000. Pass the journal entry for capital  and goodwill.

Q11 A and B are partners in a firm sharing profits and losses in the ratio of 3:2.They are helping poor by providing free medicines. The following was the Balance Sheet  of the firm as on 31-3-2016

BALANCE SHEET
                                                  .
LIABILITIES
AMOUNT
ASSETS
AMOUNT
Capitals:
A -                          60,000
B-                           20,000


80,000
Sundry Assets
80,000

80,000

80,000

           
 The profits of Rs 30,000 for the year ended 31-3-2016 were distributed between the partners without allowing interest on capital @12% p.a. and salary to A @Rs1,000 per month. During the year A withdrew Rs10,000 and B Rs20,000.
Pass the necessary adjustment journal entry and show your working clearly.
Identify the values indicated.
Q12 A firm has earned average profits of Rs2,00,000 and the normal rate of return in similar business is 10%. Find out the value of goodwill by:
(a)  Capitalisation of super profit method  and
(b)  Super profit method if the goodwill is valued at 4years purchase of super profit .
(c)  The assets of the firm were Rs20,00,000 and its external liabilities are
        Rs16,00,000.

Q13. Sonu and Monu were partners in a firm supplying school uniforms. They share profits in the ratio of 4:3.Their capitals as on 1st April ,2016 were Rs3,00,000 and Rs1,50,000 respectively. On this date Sonu   requested to admit his friend Ajay, a visually challenged unemployed person into the firm. Monu agreed .However Ajay will not contribute any capital but will bring his share of goodwill. They were in need of more capital. Sonu therefore, persuaded a rich friend of his, Dhanwin, who hailed from Kerala to be a partner.
(a)      Dhanwin brings Rs 60,000 towards capital and goodwill..
(b)     The new profit sharing ratio is 3:2:1:1 between Shabir, David, Ajay and Dhanwin
respectively. Goodwill of the firm is valued at 2,80,000
(i) Identify any two values which according to you motivated them to form the partnership .
(ii) Calculate the Sacrificing Ratio  . Pass necessary Journal Entry .


Q14 Raja and Shyla were partners sharing profits in the ratio of 3:2.Their balance sheet as on 31-3-2016 was as follows:
                                     
LIABILITIES
AMOUNT
ASSETS
AMOUNT
Capitals:
Raja  -    1,20,000
Shyla-       80,000


2,00,000

Goodwill
Land and Building

    10,000
  1 60,000
Provision for bad debts
      1,000
Machinery
    20,000
creditors
    50,000
Furniture
    10,000
Workmen’s com. reserve
    10,000
Debtors
    35,000


 cash
     6,000


Profit &Loss Account
    20,000

2,61,000

2,61,000
          .

Gokul was admitted to the partnership for 1/5th share in the profits on the following terms:
(i) The new profit sharing  ratio was decided as 2:2:1
(ii)Gokul  will bring Rs45,000 as his capital and Rs 15,000 for his share of goodwill
(iii)Half of the goodwill was withdrawn by the partner who sacrificed his share of profit in favour of the new partner.
(iv)A provision of 5% for bad debt was to be maintained.
(v)An item of Rs1500 included in sundry  creditors was not likely to be paid.
(vi)Claim on account of workmen’s compensation was Rs 4,000.
 Prepare the Revaluation Account, and write the journal entries on admission of partner.

                                                 

No comments:

Post a Comment

Note: only a member of this blog may post a comment.