Accountancy (055)

Work Sheet-1
Fundamental of Partnership
1. X and Y are partners in a firm sharing profits equally. Their capitals on 31st March2014
were `2,40,000 and ` 1,80,000 respectively. Drawings of the partners to the date were
`40,000 and `60,000 respectively. Profit for the year was `1,60,000. Calculate interest
on capital @ 8 % p.a. for the year ended 31st March 2014.
2. Calculate interest on drawings of Mr.Vinod @ 8% p.a. for the year ended 31st
March,2014 in each of the following cases:
Case 1: If he withdrew `2,000 at the beginning of each year.
Case 2: If he withdrew `2,000 during the middle of each month.
Case 3: If he withdrew `2,000 at the end of each month.
3. Calculate interest on A’ drawing :
(1) If he has withdrawn `60,000 on 1st oct. 2006 and the rate of interest on drawing is 8%
per annum.
(2) If he has withdrawn `60,000 on 1st oct. 2006 and the rate of interest on drawing is
8% . Books are closed on 31st march 2007.
4. David and John were partners in a firm sharing profits in the ratio of 4 : 1. Their capitals
on 1.4.2006 were : David `2,50,000 and John `50,000. The partnership deed provided
that David will get a commission of 10% on the net profit after allowing a salary of
`2,500 per month to John. The profit of the firm for the year ended 31.3.2007 was
`1,40,000. Prepare Profit and Loss Appropriation Account for the year ended 31.3.2007.
5. A , B and C are partners with fixed capitals of `1,00,000 , `200,000 and `3,00,000
respectively. Their partnership deed provides that: (a) A is to be allowed a monthly salary
of 600 and B is to be allowed a 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 amounted to `1,72,000. Prepare P&L Appropriation account.
6. Amit and Sumit commenced business as partners on 01.04.2014. Amit contributed
`40,000 and Sumit `25, 000 as their share of capital. The partners decided to share their
profits in the ratio of 2:1. Amit was entitled to salary of `6,000 p.a. Interest on capital
was to be provided @ 6% p.a. The drawings of `4, 000 was made by Amit and `8,000
was made by Sumit. The profits after providing salary and interest on capital for the year
ended 31st March, 2015 were `12,000.
Draw up the capital accounts of the partners

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 (a) When capitals are fluctuating
(b) When capitals are Fixed
7. X and Y invested `20,000 & `10,000. Interest on capital is allowed @ 6% per annum.
Profits are shared in ratio of 2 : 3. Profits for year ending 11.3.2015 is `1,500. Show
allocation of profits when partnership deed.
(a) Allows interest on capital & deed is silent on treating interest as charge.
(b) Interest is charge against profit.
8. A and B are partners in business. Their capitals at the end of year were `48,000 &
`36,000 respectively. During the year ended March 31st 2015 A’s Drawings and B’s
drawings were `8, 000 & `12, 000 respectively. Profits before charging interest on
capital during the year were `32, 000. Calculate Interest on partners’ capitals @ 10% p.a.
9. Aarushi and Simran are partners in a firm. During the year ended on 1st March, 2015
Aarushi makes the drawings as under:
Date of Drawing Amount (`)
01-08-2015 5,000
31-12-2014 10,000
31-03-2015 15,000
Partnership Deed provided that partners are to be charged interest on drawing @ 12% p.a.
Calculate the interest chargeable to Aarushi Drawing by using Simple Interest Method
and Product Method.
10. A and B entered into partnership on 1st April, 2014 without any partnership deed. They
introduced capitals of `5,00,000 and `3,00,000 respectively. On 31st October, 2014, A
advanced `2,00,000 by way of loan to the firm without any agreement as to interest.
The Profit and Loss Account for the year ended 31-03-2015 showed a profit of
`4,30,000 but the partners could not agree upon the amount of interest on Loan to be
charged and the basis of division of profits. Pass a Journal Entry for the distribution of
the Profits between the partners and prepare the Capital A/cs of both the partners and
Loan A/c of ‘A’.

11. Ashish, Dev and Hirnanshu are partners in a firm with no partnership deed. They differ
following points. State the rules on the basis of which their disputes can be settled.
(I) Ashish want the profit sharing ratio to be as 2 : 1 : 3.
(II) Dev wants a salary in the firm of `24,000.
(III) Himanshu wants a commission on sales @ 5% p.a.
(IV) Dev and Himanshu want interest on their loans @ 10% p.a.
(V) Ashish wants interest on capital @ 6% p.a.
(VI) Ashish and Dev wants interest on drawing @ 15% p.a.
Read the hypothetical text and answer the following questions: (12-15)
Sonu and Monu are partners sharing profits and losses in the ratio of 2:1. Their capital
Accounts as at 1st April, 2022 were `10,00,000 and `8,00,000 respectively. The partners
are allowed interest on capital @ 5% p.a. Drawings of the partners during the year ended
31st March, 2023 were `1,44,000 and `1,00,000 respectively. Monu is entitled to get a
salary of `10,000 p.m. Profit for the year before allowing interest on capital and salary
was `16,00,000. 10% of the net profit is to be transferred to General Reserve.

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12. Find the amount which is to be transferred to General Reserve Account?
a) `80,000 b) `1,20,000 c) `1,60,000 d) `2,00,000
13. What is the distributable amount of profit which is to be credited to Partners’ Capital
Accounts?
a) `16,00,000 b) `14,40,000 c) `12,30,000 d) `10,00,000.
14. Find the closing capital of Sonu?
a) `12,70,000 b) `17,26,000 c) `16,00,000 d) `10,00,000
15. What is the share of Monu’s profit to be credited to his Capital Account?
a) `14,40,000 b) ` 12,30,000 c) `4,10,000 d) `8,20,000

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