Scribd Logo
Upload

Welcome to Scribd!

  • 130 views

    Fundamentals of Partnership: Gurukul The School, Ghaziabad 1

    Uploaded by

    ayesha
    This document contains 5 questions regarding the accounting of partnership firms. Question 1 asks to pass journal entries for remuneration and salary payments to partners based on net sales and profit. Question 2 asks to calculate and pass a rectifying entry for interest on capital and drawings omitted from accounts. Question 3 asks to calculate goodwill valued on two years' purchase of super profits. Question 4 asks to pass a rectifying entry to distribute profit according to partnership deed terms. Question 5 asks to pass journal entries to record various partnership transactions including salary, interest on capital, and profit distribution.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Fundamentals of Partnership: Gurukul The School, Ghaziabad 1

    Uploaded by

    ayesha
    130 views2 pages
    This document contains 5 questions regarding the accounting of partnership firms. Question 1 asks to pass journal entries for remuneration and salary payments to partners based on net sales and profit. Question 2 asks to calculate and pass a rectifying entry for interest on capital and drawings omitted from accounts. Question 3 asks to calculate goodwill valued on two years' purchase of super profits. Question 4 asks to pass a rectifying entry to distribute profit according to partnership deed terms. Question 5 asks to pass journal entries to record various partnership transactions including salary, interest on capital, and profit distribution.

    Original Title

    Revision_WS3

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains 5 questions regarding the accounting of partnership firms. Question 1 asks to pass journal entries for remuneration and salary payments to partners based on net sales and profit. Question 2 asks to calculate and pass a rectifying entry for interest on capital and drawings omitted from accounts. Question 3 asks to calculate goodwill valued on two years' purchase of super profits. Question 4 asks to pass a rectifying entry to distribute profit according to partnership deed terms. Question 5 asks to pass journal entries to record various partnership transactions including salary, interest on capital, and profit distribution.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    130 views2 pages

    Fundamentals of Partnership: Gurukul The School, Ghaziabad 1

    Uploaded by

    ayesha
    This document contains 5 questions regarding the accounting of partnership firms. Question 1 asks to pass journal entries for remuneration and salary payments to partners based on net sales and profit. Question 2 asks to calculate and pass a rectifying entry for interest on capital and drawings omitted from accounts. Question 3 asks to calculate goodwill valued on two years' purchase of super profits. Question 4 asks to pass a rectifying entry to distribute profit according to partnership deed terms. Question 5 asks to pass journal entries to record various partnership transactions including salary, interest on capital, and profit distribution.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    SUBECT: ACCOUNTANCY

    CLASS: XII(SESSION 2020-21)


    UNIT 2- ACCOUNTING FOR PARTNERSHIP FIRMS
    Ch.2 – Fundamentals of Partnership

    Q1) Anil and Sunil are partners. Their Deed provides for to pay remuneration @2% of net sales to
    Anil and a salary of Rs. 24,000 p.a. as a charge against profit to Sunil. Net Sales and Loss for the
    year ended 31st March, 2020 were ₹ 10,000,00 and ₹ 1,000,00 respectively. Pass the necessary
    journal entries.

    Q2) Mudit and Uday are partners in a firm sharing profits in the ratio 2:3. Their capital accounts as
    on April 1, 2019 showed balances of ₹7,00,000 and ₹6,00,000 respectively. The drawings of
    Mudit and Uday during the year 2019-20 were ₹16,000 and ₹12,000 respectively. Both the
    amounts were withdrawn on 1st January 2020. Besides this on the occasion of his daughter
    wedding , he withdrew 1,00,000 from his own contribution in the firm on 1 st October, 2019. It
    was subsequently found that the following items had been omitted while preparing the final
    accounts for the year ended 31st March 2020.
    (a) Interest on capitals @ 6% p.a.;
    (b) Interest on drawings @ 6% p.a.,
    Show your workings clearly, pass a Rectifying Entry in the books of the firm.

    Q3) A firm had an average profit of 30,000 and rate of return on capital investment is 12.5% p.a.
    The firm had assets worth of 5, 00,000 and liabilities of 2, 00,000. What would be the
    amount of goodwill valued on the basis of two years’ purchase of super profit?

    Q4) Lakshmi, Saraswati and Parvati were partners in a firm sharing profits and losses in the ratio
    7:2:1. Their fixed capitals were Lakshmi ₹ 300,000, Saraswati ₹ 200,000 and Parvati ₹ 100,000.
    The partnership deed provides the following for division of profit:
    a) 10% of the trading profit will be transferred to the Reserve Account.
    b) Parvati was guaranteed a profit of ₹ 50,000. Any deficit of Parvati will be shared by Lakshmi
    and Saraswati equally.
    The trading profit of the firm for the year ended 31 st March 2019 was ₹ 2,00, 000; which was
    distributed among partners without providing for above terms. Pass the necessary rectifying
    entry.

    Q5) Athul, Bhadra and Chitra were partners in a firm. On 1.4.2019 their capitals were ₹ 1,00,000 ; ₹
    50,000 and ₹ 50,000 respectively. Athul also advanced a loan of 60,000 to the firm. As per the
    provisions of the partnership deed:
    (i) Chitra was entitled for a salary of ₹ 10,000 p.a.
    (ii) Partners were entitled to interest on capital at 5% p.a.
    (iii) Out of Profits first 20,000 to Athul and rest were to be shared by all in the ratio
    of their capitals.
    The net profit for the year 2019-20 were ₹ 83,600. Pass the necessary journal entries to record
    above transactions.
    GURUKUL THE SCHOOL,GHAZIABAD 1
    Solution of Q73 Page 2.90

    Date Particulars Amount Amount


    Bobby capital ….. DR 14,402
    To Abhir capital 10,112
    To Vineet capital 4,290
    (being the adjusting entry)

    Abhir Bobby Vineet


    Capital at end 8,00,000 6,00,000 1,00,000
    + Drawings 2,40,000 1,00,000 1,00,000
    - Profits (60,000) (60,000) (30,000)
    Capital in beg. 9,80,000 6,40,000 4,70,000
    IOC 98,000 64,000 47,000

    IOD ----- Abhir = 2,40,000 x 6% x 5.5/12 = 6,600


    Bobby = 1,00,000 x 6% x 9/12 = 4,500
    Vineet = 1,00,000 x 6% x 6/12 = 2,500

    Distributable profit after considering IOD = 1,50,000 + 13,600 = 1,63,600


    Whereas total of appropriations (IOC) = 2,09,000

    Hence case of insufficient profits, so IOC will be provided but proportionately.

    IOC to be Provided ------ Abhir = 98,000/ 209000 x 163600 = 76,712


    Bobby = 64,000/ 209000 x 163600 = 50,098
    Vineet = 47,000/ 209000 x 163600 = 36,790

    Particulars Abhir Bobby Vineet Firm


    dr cr Dr cr Dr Cr dr cr
    Wrongly 60,000 60,000 30,000 1,50,000
    credited profit
    IOD 6,600 4,500 2,500 13,600
    IOC 76,712 50,098 36,790 1.63,600
    1,63,600 1,63,600
    Balance c/d 10,112 14,402 4,290
    76,712 76,712 64,500 64,500 36,790 36,790
    Balance b/d 10,112 14,402 4,290

    GURUKUL THE SCHOOL,GHAZIABAD 2

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy