ACCOUNTANCY WORKSHEET CLASS-XII

Accounting for partnership-Fundamentals:

1. A, B and C are partners with fixed capitals of 1, 00,000, 200,000 and3, 00,000 respectively. Their
partnership deed provides that :
(a) A is to be allowed a monthly salary of 600 and B is to be alloweda monthly salary of 400.
(b) C will be allowed a commission of 5% of the net profit after allowing salaries of A and B.
(c) Interest is to be allowed on capitals @ 6%.
(d) Interest will be charged on partners annual drawings at 4%.
(e) The annual drawings were: B 10,000 and C 15,000.
The net profit for the year ending 31st march, 2014 amountedto 1, 72,000.
Prepare P&L Appropriation account.
[Ans: Share of profit 39,000 to each partner.]

2. David and John were partners in a firm sharing profits in the ratio of 4: 1.Their capitals on 1.4.2023 were:
David Rs.2, 50,000 and John Rs.50, 000. The partnership deed provided that David will get a commission of
10% on the net profit after allowing a salary of Rs.2, 500 per month to John. Theprofit of the firm for the year
ended 31.3.2007 was Rs.1, 40,000.
Prepare Profit and Loss Appropriation Account for the yearended 31.3.2024.
[Answer: - Profit to David Rs.79, 200; John Rs.19, 800]

3. A, B and C were partners in a firm having capitals of Rs.60, 000, Rs.60, 000 andRs.80,000 respectively. Their
current account balances were
: A Rs.10, 000; B Rs.5, 000and C Rs.2, 000 (Dr.). According to the partnership deed the partners were
entitled to interest on capital @5% p.a.C being the working partner was also entitled to a salary of Rs.6, 000 p.a.
The profits were to be divided as follows:
(a) The first Rs.20,000 in proportion to their capitals
(b) Next Rs.30,000 in the ratio of 5 : 3 : 2
(c) Remaining profits to be shared equally
The firm made a profit of Rs.1, 56,000 before charging any of theabove items.
Prepare the profit and loss appropriation account and pass thenecessary Journal entry for the
appropriation of profits.

[Answer: - Share of profit: A Rs.51, 000; B Rs.45, 000; CRs.44, 000]

4. X and Y are partners in a firm sharing profits equally. Their capitals on 31st March2024 were Rs.2, 40,000 and
Rs.1, 80,000 respectively. Drawings of the partners to the date were Rs.40,000 and Rs.60,000 respectively.
Profit for the year was Rs.1, 60,000.
Calculate interest on capital @ 8 % p.a. for the year ended 31st March 2024. [Answer: - Interest on X’s Capital
Rs.16, 000 and Y Rs.12, 800]

5. Calculate interest on drawings of Mr.Vinod @ 8% p.a. for the year ended31st March,2024 in each of the
following cases:
Case 1: If he withdrew Rs.2, 000 at the beginning of each year.Case 2: If he withdrew Rs.2, 000
during the middle of each month. Case 3: If he withdrew Rs.2, 000 at the end of each month
[Answer: - Case 1: Rs.1, 040; Case 2: Rs.960; Case 3: 880]
6. Calculate interest on A’ drawing :
(1) If he has withdrawn 60,000 on 1stoct. 2023 and the rateof interest on drawing is 8% per annum.
(2) If he has withdrawn 60,000 on 1stoct. 2023 and the rate ofinterest on drawing is 8% . Books are closed
on 31st march2024.
[Ans (1)2,400 (2) 4,800]

7. A, B and C are partners in a firm sharing profits and losses in the ratio of 2:3:5. Their fixed capitals were 15, 00,000,
Rs.30, 00,000 and Rs.6, 00,000 respectively. For the year 2009 interest on capital was credited to them @ 12%
instead of 10%. Pass the necessary adjustment entry.

8. A, B and C are partners in a firm. On 1-4-2023 there capital stood at50,000 25,000 25,000 respectively. As per
provisions of the partnership deed:
(a) C was in entitled for a salary of 1,000p.m.
(b) Partners were entitled to interest on capital at 5%p.a.
 (c) Profits were to be shared in the ratio of capital.
The net profit for the year ended 2024 of 33,000 was divided equally without providing for the
above terms.
[Ans: A capital debit by 500. B capital debit by 5,750 and C capitalcredit 6,250.]

GOODWILL
9. A business has earned average profits of 1, 00,000 during last few years and the normal rate of return in similar
business is 10%. Find out the value of goodwill by
(1) Capitalization of super profit method and
(2) Super profit method if the goodwill is valued at 3 years purchaseof super profit.
The assets of business where 10, 00,000 and its liabilities1, 80,000 [Ans: (1) 1,80,000 (2) 54,000]

Calculate the value of goodwill on the basis of three years purchase of last five years average profits:
2018- 50,000, 2019- 60000, 2020- 30,000(loss), 2021 – 40,000, 2022- 30,000

10. A and B are partners in a firm with the capital of Rs 60,000 and 1,20,000 resp .They decided to admit C for 1/4th
share in future profits .C is to bring in a sum of Rs 70,000 as his capital. Calculate the amount of goodwill.

ADMISSION OF A PARTNER
11. Write the effects of admission of a partner?
12. Define new profit sharing ratio?
13. X and Y are partners sharing profit in the ratio of 3: 2. They admit Z as a new partner for ⅕th shares in profit.
Calculate the new profit sharing ratio and sacrificing ratio.

14. A and B are partners sharing profits and losses equally. They admit C, as a new partner who acquires his share as
⅕th from A and ¼th from B. You are required to calculate the sacrifice ratio and the new profit sharing ratio.

15. P and Q share Profits in the ratio of 7:3. R is admitted for 2/7th share in profits . Goodwill already appear in the
balance sheet at Rs.1,00,000. Pass the necessary journal entries if :
a) R cannot bring cash for his share of goodwill Rs.80,000.
b) R brings in cash Rs.80,000 for his share of goodwill.

16. A, B and C are partners in a firm sharing profits and losses in the ratio of 6 : 3 : 1. They admit D into partnership
on 1st April 2022. New profit sharing ratio among A, B, C & D will be 3 : 3 : 3 : 1. Determine the sacrificing ratio.

17. The following was the Balance Sheet of Anurag and Bhawna, who were sharing Profits in the ratio of 2/3 and 1/3
as at 31st March, 2023:--

Liabilities Rs. Assets Rs.

Creditors 65,900 Cash 1,200
Capitals: Sundry Debtors 9,700
Anurag 30,000 Stock 20,000
Bhawna 20,000 Plant & Machine 35,000
Building 50,000

115900 115900
On 1St April, 2022 they agreed to admit Monika into partnership on the following term :- ---
a) Monika was to be given 1/3 share in profits, and was to bring Rs.15, 000 as capital and Rs.6,000 as share of
goodwill.
b) That the value of stock and plant & machine were to be reduced by 10%.
c) That a provision of 5 % was to be created for doubtful debts.
d) That the building Account was to be appreciated by 20%.
e) Investment worth Rs.1,400 ( not mentioned in the Balance Sheet) were to be taken into account.
f) That the amount of goodwill was to be withdrawn by the old partners.
Pass necessary journal entries and prepare the Revaluation A/c, Capital Accounts and the Opening Balance Sheet of
the new firm.