Q1.Kavita, Meenakshi and Gauri are partners doing a paper business in Ludhiana. After the accounts of partnership have been drawn up and closed, it was discovered that for the years ending 31st March 2013 and 2014, Interest on capital has been allowed to partners @ 6% p. a. although there is no provision for interest on capital in the partnership deed. Their fixed capitals were 2,00,000; 1,60,000 and 1,20,000 respectively.
During the last two years they had shared the profits as under:
Year Ratio
31 March 2013 3 : 2 : 1
31 March 2014 5 : 3 : 2
You are required to give necessary adjusting entry on April 1, 2014.
Q3.The Capital Accounts of A and B stood at Rs. 4,00,000 and Rs. 3,00,000 respectively after
necessary adjustments in respect of the drawings and the net profit for the year ended 31st
March, 2017. It was subsequently discovered that 5% p.a. interest on capital and also drawings
were not taken into account in arriving at the distributable profit. The drawings of the partners had
been: A--- Rs. 12,000 drawn at the end of each quarter and B--- Rs. 18,000 drawn at the end of
each half year.The profit for the year as adjusted amounted to Rs. 2,00,000. The partners share
profits in the ratio of 3 : 2. You are required to pass necessary adjustment entry.
Q3.Kanika and Gautam are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio 2:1 with capitals `5,00,000 and `4,00,000 respectively. Kanika withdrew the following amounts during the year to pay the hostel expenses of her son.
`
1st April 10,000
1st June 9,000
1st Nov. 14,000
1st Dec. 5,000
Gautam withdrew `15,000 on the first day of April, July, October and January to pay rent for the
accommodation of his family. He also paid `20,000 per month as rent for the office of partnership whichwas in a nearby shopping complex.
Calculate interest on Drawings @6% p.a.
Q4.Ayush and Sarthak were partners in a firm sharing profits inthe ratio of 2:3.Ayush had capital of ₹1,20,000.Interest on his capital is ₹1,200.
Pass necessary journal entry for allowing interest on capital assuming that the capitals of the partners were fixed
Q5.Priya, Sangya and Ruchi were partners with the fixed capitals of ₹ 40,000, ₹ 32,000 and ₹24,000 respectively and share profits in their agreed ratio of 3 : 1 : 1. It was found that following items were not passed through the books ofaccount for the year ended 31st December,2017.
(1) Interest on capital at 10% p.a.
(2) Commission to Priya was ₹6,000.
(3) Salary due to Priya was ₹8,000 and Sangya was₹12,000.
(4) Interest on drawings of Priya ₹1,500, Sangya ₹900 andRuchi ₹600.
You are required to pass a single journal entry in thebeginning of the next year to rectify the above omissions.
During the last two years they had shared the profits as under:
Year Ratio
31 March 2013 3 : 2 : 1
31 March 2014 5 : 3 : 2
You are required to give necessary adjusting entry on April 1, 2014.
Q3.The Capital Accounts of A and B stood at Rs. 4,00,000 and Rs. 3,00,000 respectively after
necessary adjustments in respect of the drawings and the net profit for the year ended 31st
March, 2017. It was subsequently discovered that 5% p.a. interest on capital and also drawings
were not taken into account in arriving at the distributable profit. The drawings of the partners had
been: A--- Rs. 12,000 drawn at the end of each quarter and B--- Rs. 18,000 drawn at the end of
each half year.The profit for the year as adjusted amounted to Rs. 2,00,000. The partners share
profits in the ratio of 3 : 2. You are required to pass necessary adjustment entry.
Q3.Kanika and Gautam are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio 2:1 with capitals `5,00,000 and `4,00,000 respectively. Kanika withdrew the following amounts during the year to pay the hostel expenses of her son.
`
1st April 10,000
1st June 9,000
1st Nov. 14,000
1st Dec. 5,000
Gautam withdrew `15,000 on the first day of April, July, October and January to pay rent for the
accommodation of his family. He also paid `20,000 per month as rent for the office of partnership whichwas in a nearby shopping complex.
Calculate interest on Drawings @6% p.a.
Q4.Ayush and Sarthak were partners in a firm sharing profits inthe ratio of 2:3.Ayush had capital of ₹1,20,000.Interest on his capital is ₹1,200.
Pass necessary journal entry for allowing interest on capital assuming that the capitals of the partners were fixed
Q5.Priya, Sangya and Ruchi were partners with the fixed capitals of ₹ 40,000, ₹ 32,000 and ₹24,000 respectively and share profits in their agreed ratio of 3 : 1 : 1. It was found that following items were not passed through the books ofaccount for the year ended 31st December,2017.
(1) Interest on capital at 10% p.a.
(2) Commission to Priya was ₹6,000.
(3) Salary due to Priya was ₹8,000 and Sangya was₹12,000.
(4) Interest on drawings of Priya ₹1,500, Sangya ₹900 andRuchi ₹600.
You are required to pass a single journal entry in thebeginning of the next year to rectify the above omissions.
