Arts (English Medium) इयत्ता १२ - CBSE Important Questions

Rajeev, Sanjeev and Jatin were partners in a firm manufacturing blanket. They were sharing profits in the ratio of 5 : 3: 2. Their capitals on 1st April, 2012 were Rs 1,00,000, Rs 2,00,000 and Rs 4,00,000 respectively. After the flood in Uttarakhand, all partners decided to help the flood victims personally.

For this, Rajeev withdrew Rs 10,000 from the firm on 1st October 2012. Sanjeev instead of withdrawing cash from the firm took blankets amounting to Rs 14,000 from the firm and distributed those to the flood victims. On the other hand, Jatin withdrew Rs 1,50,000 from his capital on 31st December 2012 and set up a centre to provide medical facilities in the flood affected area.

The partnership deed provides for charging interest on drawings @ 6% p.a. After the final accounts were prepared it was discovered that interest on drawings had not been charged. Give the necessary adjusting journal entry and show the working notes clearly. Also, state any two values which the partners wanted to communicate to the society.

The Balance Sheet of Sudha, Rahim and Kartik who were sharing profit in the ratio of 3:3:4. On the 31st March 2012 their Balance Sheet was as follows:

Sudha died on June 30th, 2012. The partnership deed provided for the following on the death of a partner:

a. Goodwill of the firm be valued at two years purchase of average profits for the last three years.
b. Sudha's share of profit or loss till the date of her death was to be calculated on the basis of sales. Sales for the year ended 31st March 2012 amounted to Rs 4,00,000 and that from 1st April to 30th June 2012 to Rs 1,50,000. The profit for the year ended 31st March 2012 was Rs 1,00,000.
c. Interest on capital was to be provided @ 6% p.a.
d. The average profits of the last three years were Rs 42,000.
e. According to Sudha's will, the executors should donate her share to "Matri Chhaya - an orphanage for girls.

Prepare Sudha's Capital Account to be rendered to her executor. Also, identify the value being highlighted in the question.

The Balance Sheet of Sadhu, Raja and Karan who were sharing profit in the ratio of 4:2:4. On the 31st March 2012 their Balance Sheet was as follows:

Sadhu died on July 31st, 2012. The partnership deed provided for the following on the death of a partner:
a. Goodwill of the firm is valued at two years purchase of average profits for the last three years.
b. Sadhu's share of profit or loss till the date of her death was to be calculated on the basis of sales. Sales for the year ended 31st March 2012 amounted to `4,50,000 and that from 1st April to 31st July 2012 to Rs 2,70,000. The profit for the year ended 31st March 2012 was Rs 1, 25,000.
c. Interest on capital was to be provided @ 5% p.a.
d. The average profits of the last three years were Rs 55,000.
e. According to Sudha's will, the executors should donate her share to "Matri Chhaya - an orphanage for girls".

Mrs Shehal and Mrs Meenal are equal partners in a business. Their balance sheet is as follows.

They agreed to admit Mr Komal on 1st April 2013 on the following terms:

(1) Komal should bring Rs. 50,000 towards her capital for one fourth (1/4th) Share in future profit.

(2) Goodwill to be raised in the books of the firm for Rs. 40,000.

(3) R.D.D. to be maintained at 5% on debtors.

(4) Premises to be valued at Rs. 30,000 and equipment to be written off fully.

(5) Creditors allowed a discount of Rs. 1,000 and they were paid off immediately.

Prepare Profit and Loss Adjustment Account, Partner's Capital Accounts and Balance Sheet of the new firm.

Why does a firm revaluate its assets and reassess its liabilities on retirement or death of a partner?

Keith, Bina, and Veena were partners in firm sharing profits and losses equally. Their balance sheet as on 31-3-2019 was as follows: 

Veena died on 30^th June 2019. According to the partnership deed, the executors of the deceased partner were entitled to :

1. Balance in the capital account
2. Salary till the date of death @ ₹ 25,000 per annum.
3. Share of goodwill calculated on the basis of twice the average profits of the past three years.
4. Share of profit from the closure of the last accounting year till the date of death on the basis of the average of three completed years profits before death.
5. Profits for 2016-17, 2017-18 and 2018-19 were ₹ 1,20,000, ₹ 90,000 and ₹ 1,50,000 respectively.

Veena withdrew ₹ 15,000 on 1^st June 2019 for paying her daughter’s school fees. 

Prepare Veena’s capital account to be rendered to her executors.

Tripti, Atishay and Radhika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as on 31-3-2019 was as follows:

Balance Sheet of Tripti, Atishay, and Radhika as on 31^st March, 2019. 

Tripti died on 30^th June, 2019. According to the partnership deed, the executors of the deceased partner are entitled to :
(a) Balance in partner's capital account.
(b) Salary @ ₹ 12,500 per quarter.
(c) Share of goodwill calculated on the basis of twice the average of past three years' profits and share of profits from the closure of the last accounting year till the date of death on the basis of last year's profit. Profits for 2016-17, 2017-18 and 2018-19 were ₹ 1,00,000, ₹ 1,50,000 and ₹ 2,00,000 respectively.
(d) Tripti withdrew ₹ 20,000 on 1^st May, 2019 for her personal use. Prepare Tripti's Capital Account to be rendered to her executors.

Chhavi and Neha were partners in firm sharing profits and losses equally. Chhavi withdrew a fixed amount at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. At the end of the year, interest on Chhavi's drawings amounted to ₹ 900. Pass necessary journal entry for charging interest on drawings.

Answer the following question:
State any two situations when a partnership firm can be compulsorily dissolved.

Gaurav, Saurabh, and Vaibhav were partners in firm sharing profits and losses in the ratio of 2 : 2 : 1. They decided to dissolve the firm on 31^st March 2018. After transferring Sundry assets (other than cash in hand and cash at Bank) and third-party liabilities to realisation account, the assets were realized and liabilities were paid off as follows:

1. A machinery with a book value of ₹ 6,00,000 was taken over by Gaurav at 50% and stock worth ₹ 5,000 was taken over by a creditor of ₹ 9,000 in full settlement of his claim.
2. Land and building (book value ₹ 3,00,000) were sold for ₹ 4,00,000 through a broker who charged 2% commission.
3. The remaining creditors were paid ₹ 76,000 in full settlement of their claim and the remaining assets were taken over by Vaibhav for ₹ 17,000.
4. Bank loan of ₹ 3,00,000 was paid along with interest of ₹ 21,000.

Pass necessary journal entries for the above transactions in the books of the firm.

Sonu and Rajat started a partnership firm on April 1, 2017. They contributed ₹ 8,00,000 and ₹ 6,00,000 respectively as their capitals and decided to share profits and losses in the ratio of 3: 2.
The partnership deed provided that Sonu was to be paid a salary of ₹ 20,000 per month and Rajat a commission of 5% on turnover. It also provided that interest on capital be allowed at 8% p.a. Sonu withdrew ₹ 20,000 on 1^st December 2017 and Rajat withdrew ₹ 5,000 at the end of each month. Interest on drawings was charged at 6% p.a. The net profit as per Profit and Loss Account for the year ended 31^st March 2018 was ₹ 4,89,950. The turnover of the firm for the year ended 31^st March 2018 amounted to ₹ 20,00,000. Pass necessary journal entries for the above transactions in the books of Sonu and Rajat.

Suresh, Ramesh and Tushar were partners of a firm sharing profits in the ratio of 6:5:4. Ramesh retired and his capital after making adjustments on account of reserves, revaluation of assets and reassessment of liabilities stood at ₹ 2,50,400. Suresh and Tushar agreed to pay him ₹ 2,90,000 in full settlement of his claim. Pass necessary journal entry for the treatment of goodwill. Show workings clearly.

Harihar, Hemang and Harit were partners with fixed capitals of ₹3,00,000, ₹ 2,00,000 & ₹ 1,00,000 respectively. They shared profits in the ratio of their fixed capitals. Harit died on 31st May 2020, whereas the firm closes its books of accounts on 31st March every year. According to their partnership deed, Harit’s representatives would be entitled to get a share in the interim profits of the firm on the basis of sales. Sales and profit for the year 2019-20 amounted to ₹8,00,000 and ₹2,40,000 respectively and sales from 1st April 2020 to 31st May 2020 amounted to ₹ 1,50,000. The rate of profit to sales remained constant during these two years. You are required to:

1. Calculate Harit’s share in profit.
2. Pass journal entries to record Harit’s share in profit.

Madhav, Madhusudan and Mukund were partners in Jaganath Associates. They decided to dissolve the firm on 31st March 2021. Pass necessary journal entries for the following transactions after various assets (other than cash) and third-party liabilities have been transferred to realization account:

1. Old machine fully written off was sold for ₹ 42,000 while a payment of ₹ 6,000 is made to bank for a bill discounted being dishonoured.
2. Madhusudan accepted an unrecorded asset of ₹80,000 at ₹75,000 and the balance through cheque, against the payment of his loan to the firm of ₹1,00,000.
3. Stock of book value of ₹30,000 was taken by Madhav, Madhusudan and Mukund in their profit sharing ratio.
4. The firm had paid realization expenses amounting to ₹5,000 on behalf of Mukund.
5. There was a vehicle loan of ₹ 2,00,000 which was paid by surrender of asset to the bank at an agreed value of ₹ 1,40,000 and the shortfall was met from firm’s bank account.

Gini, Bini and Mini were in partnership sharing profits and losses in the ratio of 5:2:2. Their Balance Sheet as at 31st March, 2021 was as follows:

On 31st March, 2021, Gini retired from the firm. All the partners agreed to revalue the assets and liabilities on the following basis:

1. Bad debts amounted to ₹ 5,000. A provision for doubtful debts was to be maintained at 10% on debtors.
2. Partners have decided to write off existing goodwill.
3. Goodwill of the firm was valued at ₹ 54,000 and be adjusted into the Capital Accounts of Bini and Mini, who will share profits in future in the ratio of 5:4.
4. The assets and liabilities valued as: Inventories ₹1,30,000; Machinery ₹ 82,000; Furniture ₹1,95,000 and Building ₹ 6,00,000.
5. Liability of ₹23,000 is to be created on account of Claim for Workmen Compensation.
6. There was an unrecorded investment in shares of ₹ 25,000. It was decided to pay off Gini by giving her unrecorded investment in full settlement of her part payment of ₹ 28,000 and remaining amount after two months.

Prepare Revaluation Account and Partners’ Capital Accounts as on 31st March, 2021.

P, Q and R were partners in a firm sharing profits and losses in the ratio of 4: 3 : 3. P died on 30th June 2021. The partnership deed provided that on the death of a partner, his share in the profits of the firm till the date of his death will be calculated on the basis of the average profits of the last five years. The profits of the last five years were:

The firm closes its books on 31st March every year.

Calculate P's share in the profits of the firm and pass necessary journal entry for the same. 

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tina and Rina after various assets (other than cash) and external liabilities have been transferred to Realisation Account:

1. An unrecorded asset of ₹ 18,000 was taken over by Tina at ₹ 16,000.
2. Rina agreed to pay her brother's loan of ₹ 23,000.
3. Stock of ₹ 30,000 was taken over by a creditor of ₹  40,000 in full settlement.
4. Expenses of dissolution ₹  40,000 were paid by Rina. 
5. Creditors were paid ₹ 18,800 in full settlement of their account of ₹  20,000.
6. Tina's loan of ₹  15,000 was paid through a cheque.

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tanay and Mehak after various assets (other than cash) and external liabilities have been transferred to Realisation Account:

1. Creditors of ₹ 60,000 accepted stock valued at ₹ 59,000 in full settlement of their claim.
2. Tanay agreed to pay off his wife's loan of ₹ 12,000.
3. The firm had a debit balance of ₹ 18,000 in the profit and loss account on the date of dissolution. 
4. An unrecorded liability of ₹ 20,000 was paid by partner, Mehak, at a discount of 10%.
5. Tanay's loan of ₹ 4,000 was paid through a cheque.
6. Expenses on dissolution amounted to ₹ 11,000 which were paid by Mehak. 

Manas and Mili are partners in a firm sharing profits in the ratio of 3 : 2. Anita is admitted as a new partner for `1/4`th share in future profits. Capitals of Manas and Mili were ₹ 3,00,000 and ₹ 1,50,000 respectively. Anita brought ₹  2,00,000 as her capital. The value of goodwill of the firm on Anita's admission.

Pass necessary Journal Entries for the following transactions on the dissolution of a partnership firm of Mita and Sonu on 31^st March, 2022 after the various assets other than cash and third party liabilities have been transferred to the Realisation Account.

1. Creditors of ₹ 90,000 took over Land and Building of ₹ 2,00,000 in full settlement of their claim.
2. Sonu took over debtors amounting to ₹ 50,000 at ₹ 40,000.
3. Realisation expenses ₹ 1,800 were paid by Sonu.
4. A machine which was not recorded in the books was taken over by Mita at ₹ 11,000 while its expected market value was ₹ 15,000.
5.  Sortu agreed to pay off his wife's loan of ₹ 20,000.
6. Profit on dissolution amounted at ₹ 50,000.