12th Class – Accountancy – Chapter 1 – Worksheet 1

Chapter 1: Accounting for Partnership Firm
Important Questions

1. Ram and Mohan were partners with fixed capitals of Rs.3,00,000 and Rs.2,00,000 respectively. As per their Partnership Deed, interest on capital was allowed @ 10% p.a. Net Profit for the year ended 31st March, 2022 was Rs.30,000. The amount of interest on capital credited to each partner’s Current Account for the year ended 31st March, 2022 was
(a) Ram Rs.30,000 and Mohan Rs.20,000 &nbsp &nbsp (b) Ram Rs.20,000 and Mohan Rs.10,000
(c) Ram Rs.18,000 and Mohan Rs.12,000 &nbsp &nbsp (d) Ram Rs.30,000 and Mohan Nil

2. X, Y and Z were partners in a firm sharing profits and losses in the ratio of 2:2:1. Z was guaranteed that her share of profit will not be less than Rs.50,000. The firm’s profit for the year ended 31st March, 2022 was Rs.2,00,000. The amount of deficiency to be borne by Anu was
(a) Rs.10,000 &nbsp &nbsp (b) Rs.75,000
(c) Rs.2,500 &nbsp &nbsp &nbsp (d) Rs.5,000

3. Aman and Chaman are partners in a firm. On 1st July 2021, Aman advanced a loan of Rs.6,00,000 to the firm. There is no Partnership Deed. On 31st March 2022, Aman was entitled to get the following amount as interest on loan
(a) Rs.36,000 &nbsp &nbsp (b) Rs.9,000
(c) Rs.18,000 &nbsp &nbsp (d) Rs. 27,000

4. Neeru and Meetu are partners in a firm with capitals of Rs.2,00,000 and Rs.1,50,000 respectively. If the firm earned a profit of Rs.17,500 for the year ended 31st March 2023, then interest on capital @ 10% p.a. would be
(a) Neeru Rs.15,000; Meetu Rs.20,000 &nbsp &nbsp (b) Neeru Rs.8,750; Meetu Rs.8,750
(c) Neeru Rs.20,000; Meetu Rs.15,000 &nbsp&nbsp&nbsp (d) Neeru Rs.10,000; Meetu Rs.7,500

5. Assertion (A): Under the fluctuating capital method, the balance in the Capital Account fluctuates from time to time.
Reason (R): Under the fluctuating capital method, all the adjustments such as share of profit and loss, interest on capital, drawings, interest on drawings etc. are recorded directly in the Capital Accounts of the partners.
In the context of above two statements, which of the following is correct?
(a) (A) is correct but (R) is wrong. &nbsp &nbsp (b) Both (A) and (R) are correct but (R) is not the correct explanation of (A).
(c) Both (A) and (R) are incorrect. &nbsp &nbsp (d) Both (A) and (R) are correct and (R) is the correct explanation of (A).

6. X, Y and Z are partners in a firm sharing profits and losses equally with capital of Rs.2,50,000 each. On 1st October 2024, X and Y gave loans of Rs.2,50,000 each to the firm whereas Z took a loan of Rs.1,00,000 from the firm on 1st November 2024. It was agreed among the partners that Z will be charged interest @ 6% p.a. Interest on loan from partners was paid on 10th April 2025. The firm closes its books on 31st March every year. Pass the Journal entries in the books of firm for the year ended 31st Mar 2025

7. Ram and Shyam are partners sharing profits in the ratio of 3:2. They contribute Rs.1,00,000 and Rs.50,000 respectively towards capital. Compute interest on capital and show distribution of profit in the following cases:
(a) When Partnership Deed is silent as to the interest on capital and profit for the year is Rs.50,000.
(b) When Partnership Deed provides for interest on capital @ 10% p.a. and profit for the year is Rs.15,000.
(c) When the Partnership Deed provides for interest on capital @ 12% and profit for the year is Rs.13,000.
(d) When the Partnership Deed provides for interest on capital @ 5% p.a. and loss for the year is Rs.8,000.
(e) When Partnership Deed provides for interest on capital @ 5% p.a. and profit for the year is Rs.3,000.
(f) When Partnership Deed provides for interest on capital @ 5% p.a. even if it involves the firm in loss and profit for the year is Rs.6,000.

8. The capital accounts of Tisha and Divya showed credit balances of Rs.10,00,000 and Rs.7,50,000 respectively after taking the account drawings and net profit of Rs.5,00,000. Drawings of the partners during the year ended 31st March 2025 were:
(a) Tisha withdrew Rs.25,000 at the end of each quarter.
(b) Divya’s drawings were:
&nbsp &nbsp &nbsp 31st May 2024 – Rs.20,000
&nbsp &nbsp &nbsp 1st November 2024 – Rs.17,500
&nbsp &nbsp &nbsp 1st February 2025 – Rs.12,500
Calculate interest on partner’s capitals @ 10% p.a. and interest on partner’s drawings @ 6% p.a. for the year ended 31st March 2025.

9. On 31st March 2018, the balances in the Capital Accounts of Abhir, Bobby and Vineet, after making adjustments for profits and drawings were Rs.8,00,000, Rs.6,00,000 and Rs.4,00,000 respectively.
Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @ 10% p.a and were to be changed interest on drawings @ 6% p.a. The drawings during the year were:
Abhir – Rs.20,000 drawn at the end of the each month, Bobby – Rs.50,000 drawn at the beginning of every half year and Vineet – Rs.1,00,000 withdrawn on 31st October 2017. The net profit of the year ended 31st March 2018 was Rs.1,50,000. The profit-sharing ratio was 2:2:1.
Pass necessary adjusting entry for the above adjustments in the books of the firm. Also, show your workings clearly.

10. Ankur, Bhavna and Disha are partners in a firm. On 1st April 2024, the balances in their Capital Accounts stood at Rs.14,00,000 and Rs.6,00,000 and Rs.4,00,000 respectively. They shared profits in the proportion of 7:3:2 respectively.
Partners are entitled to interest on capital @ 6% per annum and salary to Bhavna @ Rs.50,000 p.a. and a commission of Rs.3,000 per month to Disha as per the provisions of the Partnership Deed. Bhavna’s share of profit (excluding interest on capital) is guaranteed at not less than Rs.1,70,000 p.a. Disha’s share of profit (including interest on capital but excluding commission) is guaranteed at not less than Rs.1,50,000 p.a. Any deficiency arising on that account shall be met by Ankur. Profit of the firm for the year ended 31st March 2025 and amounted to Rs.9,50,000.
Prepare ‘Profit and Loss Appropriation Account’ for the year ended 31st March 2025.

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