SUMMER HOLIDAY HOMEWORK
Make separate homework copy for both the subject. Business studies : Write down question and answers for the questions given after the topics in NCERT Text book for all the three lessons.
Accountancy: Solve the problems given below.
Q.1 P and Q are partners with capitals of Rs.
6,00,000 and Rs. 4,00,000 respectively. The profit and Loss Account of the firm
showed a net Profit of Rs. 4, 26,800 for the year. Prepare Profit and Loss
account after taking the following into consideration:-
(i) Interest
on P's Loan of Rs. 2,00,000 to the firm
(ii) Interest
on 'capital to be allowed @ 6% p.a.
(iii)
Interest on Drawings @ 8% p.a. Drawings were ; P Rs 80,000 and Q Rs. 1000,000.
(iv) Q
is to be allowed a commission on sales @ 3%. Sales for the year was Rs. 1000000
(v) 10%
of the divisible profits is to be kept in a Reserve Account.
Q.2 A,
and C are partners with fixed capitals of Rs. 2,00,000, Rs. 1,50,000 and Rs.
1,00,000 respectively. The balance of current accounts on 1st January, 2004
were A Rs. 10,000 (Cr.); B Rs. 4,000 (Cr.) and C Rs. 3,000 (Dr.). A gave a loan
to the firm of Rs. 25,000 on 1st July, 2004. The Partnership deed provided for
the following:-
(i) Interest on Capital at 6%.
(ii) Interest on drawings at 9%. Each
partner drew Rs. 12,000 on 1st July, 2004.
(iii) Rs. 25,000 is to be transferred in a
Reserve Account.
(iv) Profit sharing ratio is 5:3: 2 upto Rs.
80,000 and above Rs. 80,000 equally. Net Profit
of the firm before above adjustments was Rs. 1,98,360.
From
the above information prepare Profit and Loss Appropriation Account, Capital
and Current Accounts of the partners.
Q.3 Ram
and Shyam were Partners. in a firm sharing profits in the ratio of 3 : 5. Their
Fixed Capitals were ': Ram Rs. 5,00,000 and Shyam Rs. 9,00,000. After the
accounts of the year had been closed, it was found that interest on capital at 10%
per annum as provided in the partnership agreement has not been credited to the
Capital Accounts of the partners. pass necessary entry to rectify the error.
.Q.4 Dinesh, Yasmine and Faria are partners
in a firm, sharing profits and losses in 11:7:2 respectively. The Balance Sheet
of the firm as on 31st Dec 2001 was as follows:
Liabilities
|
Rs.
|
Assets
|
Rs.
|
Sundry Creditors
|
800
|
Factory
|
7,350
|
Public Deposits
|
1,190
|
Plant & Machinery
|
1,800
|
Reserve fund
|
900
|
Furniture
|
2,600
|
Capital A/c
|
Stock
|
1,450
|
|
Dinesh
|
5,100
|
Debtors Rs. 1,500
|
|
Yasmine
|
3,000
|
Less:RDD Rs.
300
|
1,200
|
Faria
|
5,000
|
Cash in hand
|
1,590
|
15,900
|
15,900
|
On the same date, Annie is admitted as a partner for
on-sixth share in the profits with Capital of Rs. 4,500 and necessary amount
for his share of goodwill on the following terms:-
a. Furniture
of Rs. 2,400 were to be taken over by Dinesh, Yasmine and Faria equally.
b. A Liability
of Rs. 1,670 be created against Bills discounted.
c. Goodwill of
the firm is to be valued at 2.5 years' purchase of average profits of 2 years.
The profits are as under:
2000:- Rs. 2,000 and 2001 - Rs. 6,000.
d. Drawings of
Dinesh, Yasmine, and Faria were Rs. 2,750; Rs. 1,750; and Rs. 500 Respectively.
e. Machinery
and Public Deposits are revalued to Rs. 2,000 and Rs. 1,000 respectively.
Prepare
Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new
firm.
Q.5 X
and Y are partners as they share profits in the proportion of 3:1 their balance sheet as at 31.03.07 as follows.
BALANCE SHEET
Liabilities
|
Rs.
|
Assets
|
Rs.
|
Capital Account
|
Land
|
1,65,000
|
|
X
|
1,76,000
|
Furniture
|
24,500
|
Y
|
1,45,200
|
Stock
|
1,32,000
|
Creditors
|
91,300
|
Debtors
|
35,200
|
Bills Receivable
|
28,600
|
||
Cash
|
27,500
|
||
4,12,500
|
4,12,500
|
On
the same date, Z is admitted into partnership for 1/5th share on the
following terms
a. Goodwill
is to be valued at 3½ years purchase of average profits of last for year which
were Rs. 20,000 Rs. 17,000 Rs. 9,000 (Loss) respectively.
٠ Stock is
fund to be overvalue by Rs. 2,000 Furniture is reduced and Land to be
appreciated by 10% each, a provision for Bad Debts @ 12% is to be created on
Debtors and a Provision of Discount of Creditors @ 4% is to be created.
٠ A
liability to the extent of Rs. 1,500 should be created for a claim against the
firm for damages.
٠ An item of
Rs. 1,000 included in Creditors is not likely to be claimed, and hence it
should be written off.
Prepare
Revaluation Account, Partners: Capital Accounts and Balance Sheet of the new
firm if Z is to contribute proportionate capital and goodwill. The capital of
partners are to be in profit sharing ratio by opening current Accounts.
Q.6. Rashmi and Pooja are partners in a firm. They share profits and
losses in the ratio of 2:1. They admit Santosh into partnership firm on the
condition that she will bring Rs. 30,000 for Goodwill and will bring such an
amount that her capital will be 1/3 of the total capital of the new firm.
Santosh will be given 1/3 share in future profits. At the time of admission of
Santosh, the Balance Sheet of Rashmi and Pooja was as under:
Liabilities
|
Rs.
|
Assets
|
Rs.
|
Capital Account
|
Cash
|
90,000
|
|
Rashmi
|
1,35,000
|
Machinery
|
1,20,000
|
Pooja
|
1,25,000
|
Furniture
|
10,000
|
Creditors
|
30,000
|
Stock
|
50,000
|
Bills Payable
|
10,000
|
Debtors
|
30,000
|
3,00,000
|
3,00,000
|
It was decided to:
a.
revalue
stock at Rs. 45,000.
b.
depreciated
furniture by 10% and machinery by 5%.
c.
made
provision of Rs. 3,000 on sundry debtors for doubtful debts.
Prepare Revaluation Account, Partners: Capital Accounts and Balance
Sheet of the new firm. Give full workings.
Q.7 A,
B and C are equal partners in a firm, their Balance Sheet as on 31st
March 2002 was as follows:
Liabilities
|
Rs.
|
Assets
|
Rs.
|
Sundry Creditors
|
27,000
|
Goodwill
|
1,17,000
|
Employees Provident Fund
|
6,000
|
Building
|
1,25,000
|
Bills Payable
|
45,000
|
Machinery
|
72,000
|
General Reserve
|
18,000
|
Furniture
|
24,000
|
Capitals:
|
Stock
|
1,14,000
|
|
A
|
2,17,000
|
Bad Debts
|
1,02,000
|
B
|
1,66,000
|
Cash
|
12,000
|
C
|
90,000
|
Advertisement Suspense A/c
|
3,000
|
5,69,000
|
5,69,000
|
On that date they agree to take D as
equal partner on the following terms:
a. D should bring in Rs. 1,60,000 as his
capital and goodwill. His share of goodwill is valued at Rs. 60,000.
b. Goodwill
appearing in the books must be written off.
c. Provision for loss on stock and
provision for doubtful debts is to be made at 10% and 5% respectively.
d. The
value of building is to taken Rs. 2,00,000.
e. The total capital of the new firm has
been fixed has been fixed at Rs. 4,00,000 and the partners capital accounts are
to be adjusted in the profit sharing ratio. Any excess is to be transferred to
current account and any deficit is to be brought in cash.
Required : Prepare the Revaluation
Account, Partners Capital Accounts, and the Balance Sheet of the new firm.
Q.8 A, Band C were partners in a firm sharing
profits equally: Their Balance Sheet
on.31.12.2007 stood as:
BALANCE SHEET AS AT
31.12.07
Liabilities Rs. Assets Rs.
A Rs. 30,000 Goodwill 18,000
B Rs. 30,000 Cash 38,000
C Rs. 25,000 85,000 Debtors . 43,000
Bills payable 20,000 Less: Bad Debt provision 3,000 40,000
Creditors 18,000 Bills Receivable 25,000
Workers Compensation Fund 8,000 Land and Building 60,000 Employees prov. Fund 60,000 Plant and Machinery 40,000
General Reserve 30,000
2,21,000 2,21,000
It
was mutually agreed that C will retire from partnership and for this purpose
following terms were agreed upon.
i) Goodwill to be valued on 3 years’
purchase of average profit of last 4 years which were 2004 : Rs.50,000 (loss);
2005 : Rs. 21,000; 2006: Rs.52,000; 2007 : Rs.22,000.
ii) The Provision for
Doubtful Debt was raised to Rs. 4,000.
iii) To appreciate Land by 15%.
iv) To decrease Plant and Machinery by
10%.
v) Create provision of Rs;600 on
Creditors.
vi) A sum of Rs.5,000 of Bills Payable
was not likely to be claimed.
vii) The continuing partners decided to
show the firm’s capital at 1,00,000 which would be in their new profit sharing
ratio which is 2:3. Adjustments to be made in cash
Make
necessary accounts and prepare the Balance Sheet of the new partners.
Q.9 The
balance sheet of X, V, Z who was sharing profits in proportion of capital as
follows :-
Particulars Amount Particulars Amount
Sundry creditors 7,000 Cash
at bank 15,600
Capitals Debtors 5,000
X 25,000 Less provision 100 4,900
Y 20,000
Z 15,000 Stock 10,000
P/M 11,500
Furniture 25,000
67,000 67,000
Y
retires arid the following adjustment of the assets and liabilities has been made
before the ascertainment of the amount payable by the firm to Y
1.That the stock be depreciated by 5%
2.That the provision for doubtful
debts be increased to 5% on debtors.
3.That a provision of RS.750 be made
in respect of outstanding legal charges.
4. That the land and building be
appreciated by 20%.
5. That the goodwill of the entire firm
be fixed at Rs. 16,200 and V share of the same be adjusted into the account of X and Z (No good will
account is to be raised)
6. That X and Z decide to share future
profits of the firm in equal proportions
7. That the entire capital of the new
firm at Rs. 48000 between X and Z in· equal proportion. For the purpose, actual cash is to be brought
in or paid off.
You
are required to prepare the revolution account; partner’s capital account and
bank account and revised balance sheet after V’s retirement also indicate the
gaining rates.
Q.10 The
Balance Sheet of A, B and C on 31st December 2007 was as under :
BALANCE SHEET
as at 31.12.2007
Liabilities Amount Assets Amount
A’s Capital 40,000 Buildings 20,000
B’s Capital 30,000 Motor Car 18,000
C’s Capital 20,000 Stock 20,000
General Reserve 17,000 Investments 1,20,000
Sundry Creditors 1,23,000 Debtors 40,000
Patents 12,000
2,30,000 2,30,000
The
partners share profits in the ratio of 8 : 4 : 5. C retires from the firm on
the same date subject to the following term S and conditions:
i) 20% of the General Reserve is
to remain’ as a reserve for bad and doubtful debts.;
ii) Motor Car is to be decreased
by 5%.
iii)Stock is to be revalued at
Rs.17, 500.
iv)Goodwill is valued at’ 2 ½ years
purchase of the average profits of last 3 years.
Profits
were; 2001: Rs.11,000; 200l: Rs. 16,000
and 2003: Rs.24,000.
C.was paid in July A and B
borrowed the necessary amount from the Bank on the security of Motor Car
and stock to payoff C.
Prepare
Revaluation Account, Capital Accounts and Balance Sheet of A and B.
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