Saturday, 28 April 2012


KENDRIYA VIDYALAYA NO.2 NAUSENABAUGH VISAKHAPATNAM 5.
CLASS TEST
SUBJECT: ACCOUNTANCY                 DATE: 28.04.2012                  MAX.MARKS: 15
Q.1 Where would you record ‘Interest on drawing’ when capitals are fixed?  1 m
Q.2 State on difference between Profit and Loss a/c and Profit & Loss appropriation a/c.   1m
Q.3 In the absence of partnership deed specify the rules relating to the interest on partners loan and salary to partners.  1m

Q.4 Amit is partner in a firm he withdrew the following amount during the year 2011.
01.02.11    Rs 4000
01.05.11    Rs 10000
30.06.11    Rs 4000
31.10.11    Rs 12000
31.12.11    Rs 4000
Interest on drawings is to be charged at 7.5% p.a. Calculate interest on drawing to be charged for the year ending 31.12.11          (4m)

Q.5 A, B and C are partners their capital a/c being Rs 30000, Rs 25000 and Rs 20000 respectively. In arriving at these figures the profit for the year ending 31.3.2011 amounting to Rs 24000 had been credited to partners in the proportion in which they shared profits. During the year their drawings were Rs 5000, Rs 4000 and Rs 3000 respectively. Subsequently the following omissions were noticed.
1. Interest on capital at the rate of 10% p.a was not charged.
2. Interest on drawings A – Rs 250 B - Rs 200 and C – Rs 150 was not recorded.
Record necessary adjustment entry.        (4m)

Q.6 Amit and Sumit are partners sharing profits and losses in the ratio of 3:2 with capital Rs 50000 and Rs 30000 respectively. Interest on capital is agreed to be paid @ 6% p.a. Sumit is allowed a salary of Rs 2500 p.a. During 2011 the profit prior to the calculation of interest on capital but after charging Sumit salary amounts to Rs 12500. A provision of 5% of profit is to be made in effect of manager’s commission. Prepare profit and loss appropriation a/c.     (4m)

SUGGESTED ANSWERS
Ans. 1 Current a/c
Ans.2 Profit and loss a/c is prepared to ascertain the net profit earned by the organization.
Profit and loss appropriation a/c is prepared to find how the profit earned will be distributed among the partners.
Ans. 3 Interest on loan will be given @ 6%p.a and no salary will be given to the partners in the absence of partnership deed.
Ans.4
Date
Amount
Period
Product
01.02.11
4000
11
44000
01.05.11
10000
8
80000
30.06.11
4000
6
24000
31.10.11
12000
2
24000
31.12.11
40000
0
0


TOTAL
172000

Interest on drawing = 172000 x 7.5 x 1   = Rs 1075
                                             100 x 12
Ans. 5

A
B
C
Amount received  (A)
8000
8000
8000

               Dr                                       Profit and loss appropriation a/c                        Cr
To Interest on Capital

By Profit and Loss a/c
24000
A
2700
By Interest on Draw.

B
2100
A
250
C
1500
B
200
To Profit transfer to

C
150
A Capital
6100


B Capital
6100


C Capital
6100


TOTAL
24600
TOTAL
24600

Statement showing Opening Capital

A
B
C
Closing Capital Bal
30000
25000
20000
+ Drawing
5000
4000
3000

35000
29000
23000
- Profit and loss a/c
8000
8000
8000
Opening Capital bal
27000
21000
15000


A
B
C
Interest on Capital
2700
2100
1500
Profit and Loss a/c
6100
6100
6100

8800
8200
7600
Interest on drawing
250
200
150
Amount Receivable (B)
8550
8000
7450
(A)   – (B)
550 Cr
---
550 Dr

Journal entry
             C Capital a/c   Dr    550
               To A Capital a/c            550
           (being adjustment entry for interest on capital and drawing pass)

Ans.6
            Dr                                    Profit and loss appropriation a/c                             Cr
To interest on capital

By Profit and Loss a/c
15000
Amit
3000
(12500+2500)

Sumit
1800


To Sumit Salary
2500


To Manager Comm.
750


To Profit transfer to



Amit Capital
4170


Sumit Capital
2780


TOTAL
15000
TOTAL
15000



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