ACCOUNTANCY MONTHLY TEST - APRIL 2014

KENDRIYA VIDYALAYA NO.2 NAUSENABAUGH VISAKHAPATNAM

MONTHLY TEST: APRIL 2014

CLASS XII COMMERCE

SUBJECT: ACCOUNTANCY

MAX.MARKS:25                                               TIME: 1 HOUR

1.   Saloni and Srishti are partners in a firm. Their capital accounts as on April 01. 2005 showed a balance of Rs. 2, 00,000 and Rs. 3, 00,000 respectively. On July 01, 2005, Saloni introduced additional capital of Rs. 50,000 and Srishti, Rs. 60,000. On October 01 Saloni withdrew Rs.30,000, and on January 01, 2005 Srishti withdraw, Rs. 15,000 from their capitals. Interest is allowed @ 8% p.a. Calculate interest payable on capital to both the partners during the financial year 2005–2006.  (3 M)

2. Shahnaz withdrew the following amounts from her firm, for personal use during the year ending March 31, 2006. Calculate interest on drawings by product method, if the rate of interest to be charged is 7 per cent per annum. (4 M)

Date	Amount (Rs.)
April 1, 2005 June 30, 2005 October 31, 2005 December 31, 2005 March 1, 2006	16,000 15,000 10,000 14,000 11,000

3. Amit, Babu and Charu set up a partnership firm on April 1, 2006. They contributed Rs. 50,000, Rs. 40,000 and Rs. 30,000, respectively as their capitals and agreed to share profits and losses in the ratio of 3: 2:1. Amit is to be paid a salary of Rs. 1,000 per month and Babu, a Commission of Rs. 5,000. It is also provided that interest to be allowed on capital at 6% p.a. The drawings for the year were Amit Rs. 6,000, Babu Rs. 4,000 and Charu Rs. 2,000. Interest on drawings of Rs. 270 was charged on Amit’s drawings, Rs. 180 on Babu’s drawings and Rs. 90, on Charu’s drawings. The net profit as per Profit and Loss Account for the year ending March 31, 2006 was Rs. 35,660. Prepare the Profit and Loss Appropriation Account to show the distribution of profit among the partners. (6 M)

4. Mahesh and Dinesh share profits and losses in the ratio of 2:1. From January 01, 2004 they admit Rakesh into their firm with a guaranteed profit minimum of Rs. 25,000.New profit sharing ratio between them is 6:3:1. Mahesh and Dinesh agree to bear any deficiency on account of guarantee to Rakesh in the ratio of 3:2 respectively. The profits of the firm for the year ending December 31, 2006 amounted to Rs. 1, 20,000. Prepare Profit and Loss Appropriation Account. (6 M)

5. Nusrat, Sonu and Himesh are partners sharing profits and losses in the ratio of 5: 3: 2. The partnership deed provides for charging interest on drawing’s @ 10% p.a. The drawings of Nusrat, Sonu and Himesh during the year ending December 2004 amounted to Rs. 20,000, Rs. 15,000 and Rs. 10,000 respectively. After the final accounts have been prepared, it was discovered that interest on drawings has not been taken into consideration. Give necessary adjusting journal entry. (6 M)

NATURE AND SIGNIFICANCE OF MANAGEMENT

PARTNERSHIP FIRM - BASIC CONCEPT.

PRACTICE PROBLEMS

1.On 31st March 2012 after the close of books of accounts, the capital accounts of Ram, Gopal and Verma stood at Rs 48,000, Rs 40,000 and Rs 24,000. The profit for the year was Rs 36,000 was distributed equally. Subsequently it was discovered that interest on capital @ 5% p.a had been omitted. The profit sharing ratio was 2:2:1. Give the necessary journal entry to rectify the above omission. (Pre-board 2014).

2. Jagan and Madan share profits and losses in the ratio of 3:2. They admitted Gagan into their firm to 1/6th share in profits. Jagan and Madan guaranteed Gagan's share of profit, after charging interest on capital @ 10% p.a would not be less than Rs 30,000 in any year. Their fixed capital were Jagan Rs 2,50,000, Madan Rs 2,00,000 and Gagan Rs 1,50,000. The Profit for the year ending 31st March 2012 amounted to Rs 1,50,000 before providing interest on capital. Show the profit and loss appropriation account and Current accounts of partner. (Pre-board 2014)

3.A, B and C are partners sharing profits in the ratio of 2:1:2, their capital were fixed at Rs 3,00,000, Rs 1,00,000 and Rs 2,00,000. For the year 2012 interest was credited to them @ 11% instead of 12% p.a, the profit for the year before charging interest on capital was Rs 2,50,000. Show your working clearly and than pass necessary adjustment entry for it. (Pre-board I - 2014)

4. Patel and Tarun were partners in a firm sharing profits and losses in the ratio of 5:3. Their fixed capital as on 1.4.2012 were Patel Rs 60,000 and Tarun Rs 80,000. They agreed to allow interest on capital @ 12% p.a and to charge on drawing @ 15 % p.a. The profit of the firm for the year ended 31.3.2013 before all adjustment were Rs 12,600. The drawings made by Patel were Rs 2,000 and Tarun  Rs 4,000 during the year. Prepare profit and loss appropriation account of Patel and Tambe. Show your calculation clearly. The interest on capital will be allowed even if the firm incurs loss. (Pre-board I - 2014)

5. Anand, Bhaskar and Dinkar are partners in a firm. On 1st April 2011 the balance in their capital account stood at Rs 10,00,000, Rs 8,00,000 and Rs 6,00,000 respectively. They shared profits in the proportion of 5:4:3. Partners are entitled to interest on capital @ 10%p.a and salary to Bhaskar @ Rs 4,000 per month and Commission of Rs 16,000 per quarter to Dinkar as per the provisions of partnership deed.

Anand's share of profit (excluding interest on capital) is guaranteed at not less than Rs 1,90,000 p.a Bhaskar's share of profit (including interest on capital but excluding salary) is guaranteed at not less than Rs 2,45,000 p.a. Any deficiency arising on that account shall be met by Dinkar. The profits of the firm for the year ending 31st March 2012 amounted to Rs 8,32,000. Prepare profit and loss appropriation account for the year ending 31st March 2012.  (CBSE 2013)

6. Aakash and Vijay are partners having capital balances of Rs 4,00,000 and Rs 3,00,000. The partnership deed provides the following:
i. Interest on Capital @ 10%p.a
ii. Aakash to get salary of Rs 2000 p.m and Vijay Rs 36,000 p.a
iii. Profits are to be shared in the ratio of 3:2
iv. Their drawings were Aakash Rs 20,000 and Vijay Rs 15,000
v. Interest on drawings amounts to Rs 2,200 for Aakash and Rs 2,500 for Vijay
vi. The profits for the year were Rs 2,16,000
Prepare profit and loss appropriation account and partners capital account.  (Pre-board 2013)

7. A, B and C are partners in a firm. They had no partnership deed. They had been in business for 4 years and their P & La/c for this period was year ending March 2004 - Rs 39,000, March 2005 - Rs 54,000, March 2006 - Rs 18,000 (Loss) and March 2007 - Rs 75,000. During the year 2007-2008, they agreed to share profit and losses in the ratio of 2:2:1 with retrospective effect from the year 2003-2004. It was also decided that an interest @ 5%p.a was to be on fixed capital. Their capitals were Rs 80,000, Rs 60,000 and Rs 40,000 respectively. Pass a single adjustment entry to adjust the capital accounts of the partners. (Pre-board 2013)

WELCOME TO THE ACADEMIC YEAR 2014-15. "SCESS IS INCOMPLETE WITH 'U' ", NOTHING IS IMPOSSIBLE IN THE LIFE - THE WORD ITSELF SAYS I M POSSIBLE, YES MY DEAR CHILDREN WE CAN ROCK TOGETHER TO MAKE YOUR LIFE SUCCESSFUL. ONCE AGAIN I WELCOME YOU TO THIS ACADEMIC YEAR 2014- 15.