Tamil Nadu Board of Secondary EducationHSC Commerce Class 12th
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Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide chapter 3 - Accounts of partnership firms–fundamentals [Latest edition]

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Class 12th Accountancy Answers Guide - Shaalaa.com
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Chapter 3: Accounts of partnership firms–fundamentals

Multiple choice questionsVery short answer questionsShort answer questionsExercises
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Multiple choice questions [Pages 110 - 111]

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide Chapter 3 Accounts of partnership firms–fundamentalsMultiple choice questions [Pages 110 - 111]

Choose the correct answer

Multiple choice questions | Q I 1. | Page 110

In the absence of a partnership deed, profits of the firm will be shared by the partners in _____________.

  • Equal ratio

  • Capital ratio

  • Both Equal ratio and Capital ratio

  • None of these

Multiple choice questions | Q I 2. | Page 110

In the absence of an agreement among the partners, interest on capital is ___________.

  • Not allowed

  • Allowed at bank rate

  • Allowed @ 5% per annum

  • Allowed @ 6% per annum

Multiple choice questions | Q I 3. | Page 110

As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is ___________.

  • 8% per annum

  • 12% per annum

  • 5% per annum

  • 6% per annum

Multiple choice questions | Q I 4. | Page 110

Which of the following is shown in the Profit and loss appropriation account?

  • Office expenses

  • Salary of staff

  • Partners’ salary

  • Interest on bank loan

Multiple choice questions | Q I 5. | Page 110

When fixed capital method is adopted by a partnership firm, which of the following items will appear in the capital account?

  • Additional capital introduced

  • Interest on capital

  • Interest on drawings

  • Share of profit

Multiple choice questions | Q I 6. | Page 111

When a partner withdraws regularly a fixed sum of money at the middle of every month, the period for which interest is to be calculated on the drawings on an average is ___________.

  • 5.5 months

  • 6 months

  • 12 months

  • 6.5 months

Multiple choice questions | Q I 7. | Page 111

Which of the following is the incorrect pair?

  • Interest on drawings – Debited to capital account

  • Interest on capital – Credited to capital account

  • Interest on loan – Debited to capital account

  • Share of profit – Credited to capital account

Multiple choice questions | Q I 8. | Page 111

In the absence of an agreement, partners are entitled to _________.

  • Salary

  • Commission

  • Interest on loan

  • Interest on capital

Multiple choice questions | Q I 9. | Page 111

Pick the odd one out

  • Partners share profits and losses equally

  • Interest on partners’ capital is allowed at 7% per annum

  • No salary or remuneration is allowed to partners

  • Interest on loan from partners is allowed at 6% per annum.

Multiple choice questions | Q I 10. | Page 111

Profit after interest on drawings, interest on capital and remuneration is ₹ 10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission.

  • ₹ 50

  • ₹ 150

  • ₹ 550

  • ₹ 500

Very short answer questions [Page 111]

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide Chapter 3 Accounts of partnership firms–fundamentalsVery short answer questions [Page 111]

Very short answer questions | Q II 1. | Page 111

Define partnership.

Very short answer questions | Q II 2. | Page 111

What is a partnership deed?

Very short answer questions | Q II 3. | Page 111

What is meant by the fixed capital method?

Very short answer questions | Q II 4. | Page 111

What is the journal entry to be passed for providing interest on capital to a partner?

Very short answer questions | Q II 5. | Page 111

Why is the Profit and loss appropriation account prepared?

Short answer questions [Pages 111 - 112]

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide Chapter 3 Accounts of partnership firms–fundamentalsShort answer questions [Pages 111 - 112]

Short answer questions | Q III 1. | Page 111

State the features of partnership.

Short answer questions | Q III 2. | Page 111

State any six contents of a partnership deed.

Short answer questions | Q III 3. | Page 111

State the differences between the fixed capital method and fluctuating capital method.

Short answer questions | Q III 4. | Page 112

Write a brief note on the applications of the provisions of the Indian Partnership Act, 1932 in the absence of a partnership deed.

Short answer questions | Q III 5. | Page 112

Jayaraman is a partner who withdrew ₹ 10,000 regularly in the middle of every month. Interest is charged on the drawings at 6% per annum. Calculate interest on drawings for the year ended 31st December, 2018.

Exercises [Pages 112 - 117]

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide Chapter 3 Accounts of partnership firms–fundamentalsExercises [Pages 112 - 117]

Exercises | Q IV 1. | Page 112

Akash, Bala, Chandru and Daniel are partners in a firm. There is no partnership deed. How will you deal with the following?

  1. Akash has contributed maximum capital. He demands interest on capital at 10% per annum.
  2. Bala has withdrawn ₹ 3,000 per month. Other partners ask Bala to pay interest on drawings @ 8% per annum to the firm. But, Bala did not agree to it.
  3. Akash demands the profit to be shared in the capital ratio. But, others do not agree.
  4. Daniel demands salary at the rate of ₹  10,000 per month as he spends full time for the business.
  5. Loan advanced by Chandru to the firm is ₹ 50,000. He demands interest on loan @ 12% per annum.
Exercises | Q IV 2. | Page 112

From the following information, prepare capital accounts of partners Rooban and Deri, when their capitals are fixed.

Particulars Rooban
Deri
Capital on 1st April, 2018 70,000 50,000
Current account on 1st April, 2018 (Cr.) 25,000 15,000
Additional capital introduced 18,000 16,000
Drawings during 2018 – 2019 10,000 6,000
Interest on drawings 500 300
Share of profit for 2018 – 2019 35,000 25,800
Interest on capital 3,500 2,500
Salary Nil 18,000
Commission 12,000 Nil
Exercises | Q IV 3. | Page 113

Arun and Selvam are partners who maintain their capital accounts under fixed capital method. From the following particulars, prepare capital accounts of partners.

Particulars Arun
Selvam
Capital on 1st January, 2018 2,20,000 1,50,000
Current account on 1st January, 2018 4,250 (Dr.) 10,000 (Cr.)
Additional capital introduced during the year Nil 70,000
Withdrew for personal use 10,000 20,000
Interest on drawings 750 600
Share of profit for 2018 22,000 15,000
Interest on capital 1,100 750
Commission 6,900 Nil
Salary Nil 6,850
Exercises | Q IV 4. | Page 113

From the following information, prepare capital accounts of partners Padmini and Padma, when their capitals are fluctuating.

Particulars Padmini
Padma
Capital on 1st January 2018 (Cr. balance) 5,00,000 4,00,000
Capital on 1st January 2018 (Cr. balance) 70,000 40,000
Interest on drawings 2,000 1,000
Share of profit for 2018 52,000 40,000
Interest on capital 30,000 24,000
Salary 45,000 Nil
Commission Nil 21,000
Exercises | Q IV 5. | Page 113

Mannan and Ramesh share profits and losses in the ratio of 3 : 2 and their capital on 1st April, 2018 was Mannan ₹ 1,50,000 and Ramesh ₹ 1,00,000 respectively and their current accounts show a credit balance of ₹ 25,000 and ₹ 20,000 respectively. Calculate interest on capital at 6% p.a. for the year ending 31st March, 2019 and show the journal entries.

Exercises | Q IV 6. | Page 114

Prakash and Supria were partners who share profits and losses in the ratio of 5 : 3. Balance in their capital account on 1st April, 2018 was Prakash ₹ 3,00,000 and Supria ₹ 2,00,000. On 1st July, 2018 Prakash introduced additional capital of ₹ 60,000. Supria introduced additional capital of ₹ 30,000 during the year. Calculate interest on capital at 6% p.a. for the year ending 31st March, 2019 and show the journal entries.

Exercises | Q IV 7. | Page 114

The capital account of Begum and Fatima on 1st January, 2018 showed a balance of ₹ 50,000 and ₹ 40,000 respectively. On 1st October, 2018, Begum introduced an additional capital of ₹ 10,000 and on 1st May, 2018 Fatima introduced an additional capital of ₹ 9,000.
Calculate interest on capital at 4% p.a. for the year ending 31st December, 2018.

Exercises | Q IV 8. | Page 114

From the following balance sheets of Subha and Sudha who share profits and losses in 2 : 3, calculate interest on capital at 5% p.a. for the year ending 31st December, 2018.

Balance sheet as on 31st December, 2018

Liabilities Assets
Capital accounts:     Fixed assets 70,000
Subha 40,000   Current assets 50,000
Sudha 60,000 1,00,000    
Current liabilities   20,000    
    1,20,000   1,20,000

Drawings of Subha and Sudha during the year were ₹ 8,000 and ₹ 10,000 respectively. Profit earned during the year was ₹ 30,000.

Exercises | Q IV 9. | Page 115

From the following balance sheets of Rajan and Devan who share profits and losses 2 : 1, calculate interest on capital at 6% p.a. for the year ending 31st December, 2018.

Balance sheet as on 31st December, 2018

Liabilities Assets
Capital accounts:     Sundry assets 2,20,000
Rajan 1,00,000      
Devan 80,000 1,80,000    
Profit and loss appropriation A/c   40,000    
    2,20,000   2,20,000

On 1st April, 2018, Rajan introduced an additional capital of ₹ 40,000 and on 1st September, 2018, Devan introduced ₹ 30,000. Drawings of Rajan and Devan during the year were ₹ 20,000 and ₹ 10,000 respectively. Profit earned during the year was ₹ 70,000.

Exercises | Q IV 10. | Page 115

Ahamad and Basheer contribute ₹ 60,000 and ₹ 40,000 respectively as capital. Their respective share of profit is 2 : 1 and the profit before interest on capital for the year is ₹ 5,000. Compute the amount of interest on capital in each of the following situations:

  1. if the partnership deed is silent as to the interest on capital
  2. if interest on capital @ 4% is allowed as per the partnership deed
  3. if the partnership deed allows interest on capital @ 6% per annum.
Exercises | Q IV 11. | Page 115

Mani is a partner, who withdrew ₹ 30,000 on 1st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31st December, 2018 and show the journal entries by assuming that fluctuating capital method is followed.

Exercises | Q IV 12. | Page 115

Santhosh is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31st December, 2018 he withdrew as follows:

Date
February 1 2,000
May 1 10,000
July 1 4,000
October 1 6,000

Calculate the amount of interest on drawings.

Exercises | Q IV 13. | Page 115

Kumar is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31st December, 2018 he withdrew as follows:

Date
March 1 4,000
June 1 4,000
September 1 4,000
December 1 4,000

Calculate the amount of interest on drawings.

Exercises | Q IV 14. | Page 116

Mathew is a partner who withdrew ₹ 20,000 during the year 2018. Interest on drawings is charged at 10% per annum. Calculate interest on drawings on 31st December 2018.

Exercises | Q IV 15. | Page 116

Santhosh is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31st December, 2018 he withdrew as follows:

Date
February 1 2,000
May 1 10,000
July 1 4,000
October 1 6,000

Calculate the amount of interest on drawings by using the product method.

Exercises | Q IV 16. | Page 116

Kavitha is a partner in a firm. She withdraws ₹ 2,500 p.m. regularly. Interest on drawings is charged @ 4% p.a. Calculate the interest on drawings using average period, if she draws

  1. at the beginning of every month
  2. in the middle of every month
  3. at the end of every month
Exercises | Q IV 17. | Page 116

Kevin and Francis are partners. Kevin draws ₹ 5,000 at the end of each quarter. Interest on drawings is chargeable at 6% p.a. Calculate interest on drawings for the year ending 31st March 2019 using the average period.

Exercises | Q IV 18. | Page 116

Ram and Shyam were partners. Ram withdrew ₹ 18,000 at the beginning of each half year. Interest on drawings is chargeable @ 10% p.a. Calculate interest on the drawings for the year ending 31st December 2018 using the average period.

Exercises | Q IV 19. | Page 116

Janani, Kamali and Lakshmi are partners in a firm sharing profits and losses equally. As per the terms of the partnership deed, Kamali is allowed a monthly salary of ₹ 10,000 and Lakshmi is allowed a commission of ₹ 40,000 per annum for their contribution to the business of the firm. You are required to pass the necessary journal entry. Assume that their capitals are fluctuating.

Exercises | Q IV 20. | Page 117

Sibi and Manoj are partners in a firm. Sibi is to get a commission of 20% of net profit before charging any commission. Manoj is to get a commission of 20% on net profit after charging all commission. Net profit for the year ended 31st December 2018 before charging any commission was ₹ 60,000. Find the commission of Sibi and Manoj. Also, show the distribution of profit.

Exercises | Q IV 21. | Page 117

Anand and Narayanan are partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1st January 2018, their capitals were ₹ 50,000 and ₹ 30,000 respectively. The partnership deed specifies the following:

  1. Interest on capital is to be allowed at 6% per annum.
  2. Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800 respectively.
  3. Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800 respectively.

Give necessary journal entries and prepare profit and loss appropriation account as on 31st December 2018. Assume that the capitals are fluctuating.

Exercises | Q IV 22. | Page 117

Dinesh and Sugumar entered into a partnership agreement on 1st January 2018, Dinesh contributing ₹ 1,50,000 and Sugumar ₹ 1,20,000 as capital. The agreement provided that:

  1. Profits and losses to be shared in the ratio 2 : 1 as between Dinesh and Sugumar.
  2. Partners to be entitled to interest on capital @ 4% p.a.
  3. Interest on drawings to be charged Dinesh: ₹ 3,600 and Sugumar: ₹ 2,200
  4. Dinesh to receive a salary of ₹ 60,000 for the year, and
  5. Sugumar to receive a commission of ₹ 80,000

During the year ended on 31st December 2018, the firm made a profit of ₹ 2,20,000 before adjustment of interest, salary and commission. Prepare the Profit and loss appropriation account.

Exercises | Q IV 23. | Page 117

Antony and Ranjith started a business on 1st April 2018 with capitals of ₹ 4,00,000 and ₹ 3,00,000 respectively. According to the Partnership Deed, Antony is to get the salary of ₹ 90,000 per annum, Ranjith is to get 25% commission on profit after allowing salary to Antony and interest on capital @ 5% p.a. but after charging such commission. The profit-sharing ratio between the two partners is 1 : 1. During the year, the firm earned a profit of ₹ 3,65,000.
Prepare profit and loss appropriation account. The firm closes its accounts on 31st March every year.

Chapter 3: Accounts of partnership firms–fundamentals

Multiple choice questionsVery short answer questionsShort answer questionsExercises
Class 12th Accountancy Answers Guide - Shaalaa.com

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide chapter 3 - Accounts of partnership firms–fundamentals

Tamil Nadu Board Samacheer Kalvi solutions for Class 12th Accountancy Answers Guide chapter 3 (Accounts of partnership firms–fundamentals) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the Tamil Nadu Board of Secondary Education Class 12th Accountancy Answers Guide solutions in a manner that help students grasp basic concepts better and faster.

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Concepts covered in Class 12th Accountancy Answers Guide chapter 3 Accounts of partnership firms–fundamentals are Interest on Loan from Partners, Methods of Maintaining Capital Accounts of Partners, Division of Profits Among Partners, Interest on Capital and Interest on Drawings of Partners, Profit and Loss Appropriation Account, Introduction to Accounts of Partnership Firms–Fundamentals, Meaning, Definition and Features of Partnership, Salary and Commission to Partners, Application of the Provisions of the Indian Partnership Act, 1932 in the Absence of Partnership Deed, Final Accounts of Partnership Firms.

Using Tamil Nadu Board Samacheer Kalvi Class 12th solutions Accounts of partnership firms–fundamentals exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in Tamil Nadu Board Samacheer Kalvi Solutions are important questions that can be asked in the final exam. Maximum students of Tamil Nadu Board of Secondary Education Class 12th prefer Tamil Nadu Board Samacheer Kalvi Textbook Solutions to score more in exam.

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