DATE OF SUBMISSION: 27-11-2017
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Submission Date : 16-9-2017
Q1
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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.
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Q2
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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.
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Q3
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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
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Q4
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(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
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Q5
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Write journal entries for the following transactions on
Dissolution of firm:
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(i)
Realisation expenses Rs,5000
were paid by the firm.
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(ii)
Loan extended by partner
X is paid now Rs10,000.
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(iii)
An unrecorded assets of
Rs10,000 is taken over by partner Y at Rs6,000.
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(iv)
A contingent liability of
Rs4,000 was paid now.
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(v)
Rs1,200 is recovered
from sale of a Cycle which was written off earlier.
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(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.
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Submission Date : 11-9-2017
Q1
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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?
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Q2
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What
do you mean by calls in
advance.
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Q3
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State one deduction that may have to be
made from the amount payable to the legal representatives of a deceased
partner.
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Q4
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How will you treat accumulated profit or
losses at the time of reconstitution of a firm?
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Q5
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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.
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Q6
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What journal entry is passed if
unrecorded assets are realized.?
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Q7
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A company forfeited 20 shares of Rs 10 each , Rs 8 called up , Rs 6 paid
up .write the journal entry for forfeiture.
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Q8
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State one difference between Shares and
Debentures.
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Q9
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State any one item that is credited to the current account of
partners.
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Q10
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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.
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Q11
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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.
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Q12
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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.
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Q13
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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.
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Submission Date : 26-8-2017
Q1
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what
is meant by dissolution of a partnership ?
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Q2
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What
are the two basis on which the share of profit till the date of death
calculated on the death of a partner?
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Q3
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Differentiate
between dissolution of firm and dissolution of partnership (any 1)
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Q4
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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 .
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Q5
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A
company forfeited 20 shares of Rs 10
each , Rs 8 called up , Rs 6 paid up .write the journal entry for forfeiture.
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Q6
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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.
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Q7
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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.
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Q8
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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
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Q9
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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
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Q10
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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
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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 .
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Q11
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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.
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Q12
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A
and B are partners with profit sharing ratio of 3:1
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Balance Sheet an at 31st December ,2015
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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.
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Submission Date : 20-8-2017
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Q1
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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.
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Q2
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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.
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Q3
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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.
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Q4
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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.
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Q5
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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.
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DATE OF SUBMISSION : 3-06-2017
Q1
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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.
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Q2.
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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.
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Q3.
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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.
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Q4
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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
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Q5.
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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?
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Submission Date : 10-8-2017
Q1
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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:
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.
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Q2
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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.
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Q3
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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.
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Q4
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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.
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Q5
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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:
(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.
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Submission Date : 4-8-2017
Q1
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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.
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Q2
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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.
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Q3
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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.
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Q4
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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.
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Q5
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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.
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Submission Date : 28-7-2017
Q1
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A, B and C are partners sharing profits in the ratio4:3:2. Their Balance sheet on 31st March 2015 was as follows:
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.
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Q2
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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.
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Q3
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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
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Q4
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State any two items of deduction that may have to be made from the amount payable to a retiring partner.
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Q5
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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)
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
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Submission Date : 23-7-2017
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Q1
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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.
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Q2
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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.
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Q3
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, 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:
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.
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Q4
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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.
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Q5
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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”.
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Q6
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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
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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.
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Q2
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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
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Q3
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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
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Q4
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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.
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Q5
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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:
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.
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Submission Date : 5-7-2017
Q1
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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.
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Q2
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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.
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Q3
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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.
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Q4
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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
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Q5
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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:
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.
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Q6
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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
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.Submission Date : 7-6-2017
Q1.
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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.
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Q2
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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.
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Q3
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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.
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Q4
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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
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Q5
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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
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Q6
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, 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.
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Submission Date : 13-6-2017
Q1
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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.
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Q2
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How does the factor “quality of product” affect the goodwill of a partner?
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Q3
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How does the factor “Location” affect the goodwill of a partner?
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Q4
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How does the factor “Efficiency of Management” affect the goodwill of a partner?
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Q5
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Where would you record interest on capital when capitals are fluctuating?
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Q6
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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
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Q7
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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.
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Q8
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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.
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Submission Date : 20-6-2017
Q1
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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.
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Q2
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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
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Q3
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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.
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Q4
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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.
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Q5
|
The Balance sheet of A and B as on 31st March 2015 is given below:
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.
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Submission Date : 27-6-2017
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Q1
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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.
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Q2
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Balance sheet of A, B and C sharing profits in the ratio of 3:2:1 is given below:
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.
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Q3
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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:
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.
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Q4
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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.
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Q5
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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.
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Date of home work : 2-6-2017
Date of submission : 8-6-2017
Q1
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Name the account prepared to show the
distribution of profit among the partners of a firm
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Q2
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Name any two items which will be credited
to current account of a partner.
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Q3
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How would you calculate interest on
drawings if a regular amount is drawn at the end of each quarter?
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Q4
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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.
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Q5
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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.
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Q6
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Define partnership. State any four
rights of a partner.
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Q7
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What is a partnership deed? State any
four important contents of a
partnership deed.
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Q8
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Differentiate between fixed capital
account and fluctuating capital account.
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Q9
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Write journal entries relating to :
Interest on capital, interest on drawings.
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Q10
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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.
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Q11
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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.
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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
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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.
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