Accountancy

Mohit, Shobhit and Rohit are partners sharing profits and losses in the ratio 2: 1: 1. Rohit is guaranteed n profit of Rs. 14,000. The firm earned a profit of Rs. 20,000 during the year. Calculate the amount of deficiency borne by Mohit and Shobhit. (C.B.S.E. 2020; Punjab)

SOLUTION Mohit Rs. 6,000 and Shobhit Rs. 3,000.

Continue ReadingMohit, Shobhit and Rohit are partners sharing profits and losses in the ratio 2: 1: 1. Rohit is guaranteed n profit of Rs. 14,000. The firm earned a profit of Rs. 20,000 during the year. Calculate the amount of deficiency borne by Mohit and Shobhit. (C.B.S.E. 2020; Punjab)

Raj Seema started a partnership firm on 1st july , 2018. They agreed that Seema was entitled to a commission of 10% of the net profit after agreed charging Raj’s salary of Rs. 2,500 per quarter and Seema’s commission. The net profit before charging Raj’s salary and Seema’s commission for the year ended 31st March, 2019 was Rs. 2,27,500. Calculate Seema’s commission. (C.B.S.E. 2019, Comptt.)

SOLUTION Net Profit before salary and commission = Rs. 2,27,500Less: Raj’s Salary Rs. 2,500 x 3 = Rs. 7,500Net Profit after Raj’s Salary but before Seema’s Commission = Rs. 2,20,000Seema’s Commission = 10…

Continue ReadingRaj Seema started a partnership firm on 1st july , 2018. They agreed that Seema was entitled to a commission of 10% of the net profit after agreed charging Raj’s salary of Rs. 2,500 per quarter and Seema’s commission. The net profit before charging Raj’s salary and Seema’s commission for the year ended 31st March, 2019 was Rs. 2,27,500. Calculate Seema’s commission. (C.B.S.E. 2019, Comptt.)

Chhavi and Neha were partners in a firm sharing profits and losses equally. Chhavi withdrew a fixed amount of Rs. 6,000 at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. Pass necessary journal entry for charging interest on drawings at the end of the year. (C.B.S.E. 2019, M.P.)

SOLUTION Chhavi’s Capital A/c      Dr.                   900 To Interest on Drawings A/c                                   900(Interest on drawings charged)

Continue ReadingChhavi and Neha were partners in a firm sharing profits and losses equally. Chhavi withdrew a fixed amount of Rs. 6,000 at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. Pass necessary journal entry for charging interest on drawings at the end of the year. (C.B.S.E. 2019, M.P.)

Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs. 2 crores. After a year, they sold it for Rs. 3 crores and shared the profits equally. Are they doing the business in partnership? Give reason in support of your answer.

SOLUTION They are not doing business in partnership. It will be called ‘Joint Venture’.

Continue ReadingRitesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for Rs. 2 crores. After a year, they sold it for Rs. 3 crores and shared the profits equally. Are they doing the business in partnership? Give reason in support of your answer.

P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were Rs. 2,00,000 and Rs. 3,00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the year ended 31st March, 2016, the profits of the firm were distributed without providing interest on capital. Pass necessary adjustment entry to rectify the error. (C.B.S.E. 2017, Outside Delhi)

SOLUTION P' s Current A/c              Dr.       6,000 To Q’s Current A/c                            6,000(For omission of interest on capital)

Continue ReadingP and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were Rs. 2,00,000 and Rs. 3,00,000 respectively. The partnership deed provided for interest on capital @ 12% per annum. For the year ended 31st March, 2016, the profits of the firm were distributed without providing interest on capital. Pass necessary adjustment entry to rectify the error. (C.B.S.E. 2017, Outside Delhi)

A and B are partners. The net divisible profit as per Profit and Loss Appropriation A/c is Rs. 2,50,000. The total interest on partner’s drawings is Rs. 4,000. A’s salary is Rs. 4,000 per quarter and B’ s salary is Rs. 40,000 per annum. Calculate the net profit / loss earned during the year. (C.B.S.E. Sample Paper, 2017)

SOLUTION Net profit During the Year = Divisible profit + Salary to partners - Interest on Drawings= 2,50,000 +16,000 + 40,000 - 4,000= Rs. 3,02,000

Continue ReadingA and B are partners. The net divisible profit as per Profit and Loss Appropriation A/c is Rs. 2,50,000. The total interest on partner’s drawings is Rs. 4,000. A’s salary is Rs. 4,000 per quarter and B’ s salary is Rs. 40,000 per annum. Calculate the net profit / loss earned during the year. (C.B.S.E. Sample Paper, 2017)

Anna and Bobby were partners sharing profits and losses in the ratio of 5: 3. On 1st April, 2014, their Capital Accounts showed balances of Rs. 3,00,000 and Rs. 2,00,000 respectively. Calculate the amount of profit to be distributed between the partners if the Partnership Deed provided for Interest on Capital @10% p.a. and the firm earned a profit of Rs. 45,000 for the year ended 31st March, 2015. (C.B.S.E. 2016, Comptt. Outside Delhi)

SOLUTION Profit of Rs. 45,000 in not adequate to pay interest on capital. Hence, profit of Rs. 45,000 will be distributed in the ratio of interest on capital i.e., Rs.…

Continue ReadingAnna and Bobby were partners sharing profits and losses in the ratio of 5: 3. On 1st April, 2014, their Capital Accounts showed balances of Rs. 3,00,000 and Rs. 2,00,000 respectively. Calculate the amount of profit to be distributed between the partners if the Partnership Deed provided for Interest on Capital @10% p.a. and the firm earned a profit of Rs. 45,000 for the year ended 31st March, 2015. (C.B.S.E. 2016, Comptt. Outside Delhi)