My Cart
Your Cart 0

    Your cart is empty.

  • Total (Amount) ₹0.00
NCERT · Class 12 · Accountancy

Unit 1: Accounting for Partnership Firms – Basic Concepts

Practice each question, then open the answer or worked solution.

Read chapter PDFDownload PDF

Numerical Questions for NCERT Accountancy Solutions Class 12 Part 1 Chapter 2

40 questions
Q21Written answer

On March 31, 2017, after the close of books of accounts, the capital accounts of Ram, Shyam and Mohan showed a balance of ₹ 24,000, ₹ 18,000 and ₹ 12,000, respectively. It was later discovered that interest on capital @ 5% had been omitted. The profit for the year ended March 31, 2017, amounted to ₹ 36,000, and the partner’s drawings had been Ram, ₹ 3,600; Shyam, ₹ 4,500 and Mohan, ₹ 2,700. The profit-sharing ratio of Ram, Shyam and Mohan was 3:2:1. Calculate interest on capital.

Show solutionHide solution
Worked solution

The solution to this question is as follows:

Ram Shyam Mohan
Capital on March 31 24,000 18,000 12,000
Add: Drawings 3,600 4,500 2,700
Less: Profit (3:2:1) (18,000) (12,000) (6,000)
Capital April 01, 2012 9,600 10,500 8,700
Q22Written answer

Amit, Sumit and Samiksha are in partnership, sharing profits in the ratio of 3:2:1. Samiksha’s share in profit has been guaranteed by Amit and Sumit to be a minimum sum of ₹ 8,000. Profits for the year ended March 31, 2017, was ₹ 36,000. Divide profit among the partners.

Show solutionHide solution
Worked solution

The solution to this question is as follows:

Guarantee of Profit to the Partners

Profit and Loss Appropriation Account
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Profit Transferred to Profit and Loss 36,000
Amit’s Capital 18,000
Less: Gurantee to Samiksha

{2,000 × (3/5)}

 (1,200) 16,800
Sumit’s Capital 12,000
Less: Gurantee to Samiksha

{2,000 × (2/5)}

 (800) 11,200
Samiksha Capital 6,000
Add: Amit’s Guarantee 1,200
Add: Sumit’s Guarantee 800 8,000
36,000 36,000
Q23Written answer

Pinki, Deepti and Kaku are partners, sharing profits in the ratio of 5:4:1. Kaku is given a guarantee that his share of profits in any given year would not be less than ₹ 5,000. Deficiency, if any, would be borne by Pinki and Deepti equally. Profits for the year amounted to ₹ 40,000. Record necessary journal entries in the books of the firm showing the distribution of profit.

Show solutionHide solution
Worked solution

The solution to this question is as follows:

Profit and Loss Appropriation Account
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Profit Transferred to Profit & Loss 40,000
Pinki’s Capital 20,000
Less: Gurantee to Kaku

{1,000 × (1/2)}

 (500) 19,500
Deepti’s Capital 16,000
Less: Guarantee to Kaku

{1,000 × (1/2)}

 (500) 15,500
Kaku’s Capital 4,000
Add: Deficiency Received from
Pinki 500
Deepti 500 5,000
40,000 40,000
Q24Written answer

Abhay, Siddharth and Kusum are partners in a firm, sharing profits in the ratio of 5:3:2. Kusum is guaranteed a minimum amount of ₹ 10,000 as per share in the profits. Any deficiency arising on that account shall be met by Siddharth. Profits for the years ending March 31, 2016, and 2017 are ₹ 40,000 and 60,000, respectively. Prepare Profit and Loss Appropriation Account.

Show solutionHide solution
Worked solution

The solution to this question is as follows:

Profit and Loss Appropriation Account as on March 31, 2016
Dr.         Cr.
Particulars Amount

₹

 Particulars Amount

₹
Profit Transferred to Profit and Loss 40,000
Abhay’s Capital 20,000
Siddharth’s Capital 12,000
Less: Guarantee to Kusum’s (2,000) 10,000
Kusum’s Capital 8,000
Add: Deficiency Received from Siddharth 2,000 10,000
40,000 40,000
Profit and Loss Appropriation Account as on March 31, 2017
Dr.       Cr.
Particulars Amount

₹

 Particulars Amount

₹
Profit transferred to Profit and Loss 60,000
Abhay’s Capital 30,000
Siddharth’s Capital 18,000
Kusum’s Capital 12,000
60,000 60,000
Q25Written answer

Radha, Mary and Fatima are partners sharing profits in the ratio of 5:4:1. Fatima is given a guarantee that her share of profit, in any year, will not be less than ₹ 5,000. The profits for the year ending March 31, 2017, amount to ₹ 35,000. The shortfall, if any, in the profits guaranteed to Fatima is to be borne by Radha and Mary in the ratio of 3:2. Record necessary journal entries to show the distribution of profit among partners.

Show solutionHide solution
Worked solution

The solution to this question is as follows:

Profit and Loss Appropriation Account
Dr.         Cr.
Particulars Amount

₹

 Particulars Amount

₹
Profit Transferred to Profit and Loss 35,000
Radha’s Capital 17,500
Less: Fatima’s Deficiency {1,500 × (3/5)} (900) 16,600
Mary’s Capital 14,000
Less: Fatima’s Deficiency {1,500 × (2/5)} (600) 13,400
Fatima’s Capital 3,500
Add: Deficiency Born by
Radha 900
Mary 600 5,000
35,000 35,000
Journal

 
Date Particulars L.F. Debit

Amount

₹

 Credit

Amount

₹
Profit and Loss Appropriation A/c Dr. 35,000
To Radha’s Capital A/c 16,600
To Mary’s Capital A/c 13,400
To Fatima’s Capital A/c 5,000
(Profit distributed among Partners)

 

Alternative Method

Journal

 
Date Particulars L.F. Debit

Amount

₹

 Credit

Amount

₹
Profit and Loss Appropriation A/c Dr. 35,000
To Radha’s Capital A/c 17,500
To Mary’s Capital A/c 14,000
To Fatima’s Capital A/c 3,500
(Profit Distributed among Partners)
Radha’s Capital A/c Dr. 900
Mary’s Capital A/c Dr. 600
To Fatima’s Capital A/c 1,500
(Deficiency of Fatima’s Share Taken from Radha and

Mary)
Q26Written answer

X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3:2:1, respectively. Z’s share in the profit is guaranteed by X and Y to be a minimum of ₹ 8,000. The net profit for the year ended March 31, 2017, was ₹ 30,000. Prepare the Profit and Loss Appropriation Account, indicating the amount finally due to each partner.

Show solutionHide solution
Worked solution

The solution to this question is as follows:

Profit and Loss Appropriation Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Profit Transferred to Profit and Loss 30,000
X’s Capital 15,000
Less: Z’s Deficiency {3,000 × (3/5)} (1,800) 13,200
Y’s Capital 10,000
Less: Z’s Deficiency {3,000 × (2/5)} (1,200) 8,800
Z’s Capital 5,000
Add: Share of Deficiency born by
Radha 1,800
Mary 1,200 8,000
30,000 30,000
Q27Written answer

Arun, Boby and Chintu are partners in a firm sharing profit in the ratio of 2:2:1. According to the terms of the partnership agreement, Chintu has to get a minimum of ₹ 60,000, irrespective of the profits of the firm. Any Deficiency to Chintu on Account of such guarantee shall be borne by Arun. Prepare the profit and loss appropriation account showing the distribution of profits among partners in case the profits for the year 2015 are: (i) ₹ 2,50,000; (ii) 3,60,000.

Show solutionHide solution
Worked solution

The solution to this question is as follows:

(i) 

Profit and Loss Appropriation Account as on March 31, 2015
Dr.         Cr.
Particulars Amount

₹

 Particulars Amount

₹
Profit Transferred to Profit and Loss 2,50,000
Arun’s Capital 1,00,000
Less: Chintu’s Share of Deficiency (10,000) 90,000
Bobby’s Capital 1,00,000
Chintu’s Capital 50,000
Add: Deficiency Received from Arun 10,000 60,000
2,50,000 2,50,000

(ii)

Profit and Loss Appropriation Account as on March 31, 2015
Dr.   Cr.
Particulars Amount

₹

 Particulars Amount

₹
Profit Transferred to Profit and Loss 3,60,000
Arun’s Capital {3,60,000 × (2/5)} 1,44,000
Bobby’s Capital {3,60,000 × (2/5)} 1,44,000
Chintu’s Capital {3,60,000 × (1/5)} 72,000
3,60,000 3,60,000
Q28Written answer

Ashok, Brijesh and Cheena are partners sharing profits and losses in the ratio of 2:2:1. Ashok and Brijesh have guaranteed that Cheena’s share in any year shall be less than ₹ 20,000. The net profit for the year ended March 31, 2017, amounted to ₹ 70,000. Prepare Profit and Loss Appropriation Account.

Show solutionHide solution
Worked solution

The solution to this question is as follows:

Profit and Loss Appropriation Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Profit Transferred to Profit and Loss 70,000
Ashok’s Capital 28,000
Less: Cheena’s Share of Deficiency {6,000 × (1/2)} (3,000) 25,000
Brijesh’s Capital 28,000
Less: Cheena’s Share of Deficiency {6,000 × (1/2)} (3,000) 25,000
Cheena’s Capital 14,000
Add: Deficiency Received from
Ashok 3,000
Brijesh 3,000 20,000
70,000 70,000
Q29Written answer

Ram, Mohan and Sohan are partners with capitals of ₹ 5,00,000, ₹ 2,50,000 and 2,00,000, respectively. After providing interest on capital @ 10% p.a., the profits are divisible as follows:

Ram 1/2, Mohan 1/3 Sohan 1/6. But Ram and Mohan have guaranteed that Sohan’s share in the profit shall not be less than ₹ 25,000 in any year. The net profit for the year ended March 31, 2017, was ₹ 2,00,000 before charging interest on capital. You are required to show the distribution of profit.

Show solutionHide solution
Worked solution

The solution to this question is as follows:

Profit and Loss Appropriation A/c as on 31 March 2017
Dr.       Cr.
Particulars   Amount

₹

 Particulars Amount

₹
Interest on Capital Profit and Loss 2,00,000
Ram 50,000
Mohan 25,000
Sohan 20,000 95,000
Profit Transferred to
Ram’s Capital 52,500
Less: Share of Deficiency {7,500 × (3/5)} (4,500) 48,000
Mohan’s Capital 35,000
Less: Share of Deficiency {7,500 × (2/5)} (3,000) 32,000
Sohan’s Capital 17,500
Add: Deficiency Received from
Ram 4,500
Mohan 3,000 25,000
2,00,000 2,00,000
Q30Written answer

Amit, Babita and Sona form a partnership firm, sharing profits in the ratio of 3:2:1, subject to the following :

(i) Sona’s share in the profits is guaranteed to be not less than ₹ 15,000 in any year.
(ii) Babita gives a guarantee to the effect that the gross fee earned by her for the firm shall be equal to her average gross fee of the proceeding five years when she was carrying on her profession alone (which is ₹ 25,000). The net profit for the year ended March 31, 2017, is ₹ 75,000. The gross fee earned by Babita for the firm was ₹ 16,000.

You are required to show the Profit and Loss Appropriation Account (after giving effect to the alone).

Show solutionHide solution
Worked solution

The solution to this question is as follows:

Profit and Loss Appropriation Account as on March 31, 2017
Dr.       Cr.
Particulars Amount

₹

 Particulars Amount

₹
Profit Transferred to Profit and Loss 75,000
Amit’s Capital {84,000 × (3/6)} 42,000 Babita’s Capital 9,000
Less: Sona’s Share of Deficiency {1,000 × (3/5)} (600) 41,400 (Deficiency  of Fees 25,000 – 16,000)
Babita’s Capital {84,000 × (2/6)} 28,000
Less: Sona’s Share of Deficiency {1,000 × (2/5)} (400) 27,600
Sona’s Capital {84,000 × (1/6)} 14,000
Add: Deficiency Received from
Amit 600
Babita 400 15,000
84,000 84,000