Keshav retires on 1st April. 2016 on which date:
(i) The Goodwill of the firm was valued at Rs. 9,000.
(ii) 20% of the General Reserve was kept aside as provision for doubtful debts.
(iii) There was a piece Of furniture valued at Which was unrecorded in the
books of firm.
Mohit decided to pay off Keshav by giving him this piece of furniture and the balance in annual instalments of Rs. 8,000 along With interest @5% per annum.
You are required prepare:
(a) Keshav's Capital Account.
(b) Keshav's Loan Account till it is finally closed.
a) Alia and Chand were entitled to a salary of ₹ 1,500 each p.m.
b) Bhanu was entitled for a salary of ₹ 4,000 p.a.
Pass the necessary Journal entry for the above adjustments in the books of the firm. Show workings clearly
capital account fixed Atul =? 500000 and Mithun =?600000
loan account Atul =3 lacs credit and Mithun =2 lacs debit
it was agreed to a allow and charge interest 8% per annum
partnership deed provided to allow interest on capital @ 10% per annum interest on drawings was charged 5000 each
profit before giving effect to above was 228000 for the year ended 31st March 2020 prepare Profit and Loss appropriation account
Please solve this answer ??????
(a) Interest on capitals @ 6% p.a,
(b) Interest on drawings @ 6% p.a.;
(c) Mudit was entitled to a commission of Rs. 4,000 for the whole year.
Showing your working clearly pass a rectifying entry in the books of the firm.
were:Kabir-*5,20,000, Zoravar- 3,20,000 and Parul? 2,00,000.
The Partnership Deed provided as follows:
(i) Kabir and Zoravar each will get salary of 24,000 p.a.
(ii) Parul will get commission of 2% of Sales.
(ii) Interest on capital is to be allowed @ 5% p.a.
(iv) Interest on Drawings is to be charged @ 5% p.a.
(V) 10% of Divisible Profit is to be transferred to General Reserve.
sales for the year ended 31st March, 2020 were * 50,00,000. Drawings by each of the partners during the
year was 360,000. Net Profit for the year was 1,55,500.
repare Profit and Loss Appropriation Account for the year ended 31st March, 2020.
s withdrawal 40000 from firm on 15 sep. 2013
t took garments from firm cost 48000 on the other hand r withdrawal 400000 from her capital on 1 jan. 2014
partnership deed provide interest on drawing @6% p.a. after making final acc it was discovered that interest on drawing had not charged . pass journal entries and show working notes clearly
please solve it as fast as possible
a) Rent to partner b) Manager's Commission c) Interest on Partner's Capital d) Interest on Partner's Loan
Choose the correct option and why ( reason also ) No links
Are there solutions for Accounts book T.S Grewal ?
Q. Arun and Balun are partners in a firm sharing profits and losses equally. Their capitals on 1st April. 2015. were 480000 and 5,40,000.On 1st October, 2015, they decided that the total capital of the firm should be Rs. 10,00,000, to be contributed equally by both Of them. According to the partnership deed, interest on capital is allowed to partners @ 6% p.a.
You are required to compute interest on capital for the year ending 31st March 2016.
Q. Mohit and Keshav are two partners sharing profits and losses equally. The Balance Sheet of their firm as on 31st March. 2016. was as follows:
(i) The Goodwill of the firm was valued at Rs. 9,000.
(ii) 20% of the General Reserve was kept aside as provision for doubtful debts.
(iii) There was a piece Of furniture valued at Which was unrecorded in the
books of firm.
Mohit decided to pay off Keshav by giving him this piece of furniture and the balance in annual instalments of Rs. 8,000 along With interest @5% per annum.
You are required prepare:
(a) Keshav's Capital Account.
(b) Keshav's Loan Account till it is finally closed.
7. The Capital Accounts of X and Y stood at Rs 10,00,000 and Rs 7,50,000 respectively after necessary adjustments in respect of the drawings and the net profits for the year ended 31st March, 2016. It was subsequently ascertained that 5% p.a. interest on capital and drawings was not provided in arriving at the net profit. The drawings of the partners had been : X - Rs 30,000 drawn at the end of each quarter and Y - Rs 45,000 at the end of each half year. The profit for the year as adjusted amounted to Rs 5,00,000 The partners share profits in the ratio of 3 : 2.
Pass Journal entries to rectify the above error.
Profit and loss adjustment is another name for revaluation account. But in the study material of chap 1- interest on capital, PL adjustment account is made instead of PL appropriation. Why?
In addition, B was also entitled to draw a salary of ` 1,500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital, but before charging the salary payable to B. The net profits for the year, ` 80,000, were distributed in the ratio of their capitals without providing for any of the above adjustments. Showing your workings clearly, pass the necessary adjustment entry.
why is goodwill considered as an intangible asset but not a fictitious asset?
what is the difference between profit and loss and profit and loss appropriation
what do you understand by reconstitution of a partnership firm?
Give the necessary adjusting journal entry with working notes.
pls give the solution that who the ammunt come
give the difference b/w fixed and fluctuating capital accounts.
profit of Rs. 2,00,000. During the year, the firm earned a profit of Rs. 84,000. Calculate the
net amount of Profit/Loss transferred to capital accounts of A & C.
Can someone please explain me how to do this sum?????
difference between charge against profit and charge on profits?????
You are required to show necessary account for division of loss and also pass the necessary journal entries.
How to prepare revaluation account?
each. On 1st October, 2019, Ankit and Bhanu gave loans of 2,50,000 each to the firm whereas Charu took
a loan of 1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be
charged Interest @ 6% p.a. Interest on loan from partners was paid on 10th April, 2020. The firm closes its
books on 31st March each year.
Pass the Journal entries in the books of the firm for the year ended 31st March, 2020.
Show the treatment of interest on loan in the profit and loss appropriation account and profit and loss account????
Would interset on capital and interest on loan would be having the same treatment in profit and loss appropriation account????
What will be the journal entry to it?????????and Explain it????with proper example??????
(i) A and C were entitled to a salary of Rs 1,500 p.a.
(ii) B was entitled to a salary of Rs4,500
(iii) B and C had guaranteed a minimum profit of Rs 35000 p.a. to A
(iv) Profits were to be shared in the ratio of 3:3:2
Pass necessary journal entry for the above adjustment in the books of the firm.
help me in question no.48 of D.K goel pg no.1.91
Q11. Praveen, Sahil and Riya are partners having fixed capital of Rs. 2,00,000, Rs. 1,60,000 and Rs. 1,20,000 respectively. They share profit in the ratio of 3:1: 1. The partnership deed provided for the following which were not recorded in the books.
i. Interest on Capital @5% p.a.
ii. Salary to Praveen Rs. 1,500 p.m. and to Riya Rs. 1,000 p.m.
iii. Transfer of profit to General Reserve Rs. 10,000. Net profit for year ended 31st March 2015 was Rs. 1,00,000.
Pass necessary rectifying entry for the above adjustment in the books of the firm. Also show your working clearly.
In the absence of partnership deed, specify the rules relating to the following:
(i) Sharing of profits and losses.
(ii) Interest on partner’s capital.
(iii) Interest on Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to a partner.
Q180. Ajay, Binay & Chetan were partners sharing profits in the ratio 3:3:2. The Partnership Deed provided for the following:
(i) Salary of Rs. 2000 per quarter to Ajay & Binay.
(ii) Chetan was entitled to a commission of Rs. 8000.
(iii) Binay was guaranteed a profit of Rs. 50,000 p.a.
The profit of the firm for the year ended 31st March, 2015 was Rs. 1,50,000 which was distributed among Ajay, Binay & Chetan in the ratio 2:2:1, without taking into consideration the provisions of Partnership Deed. Pass Necessary rectifying entry for the above adjustments in the books of the firm. Show your workings clearly.
[Ans. Dr. Ajay's Capital A/c- Rs. 6400; Binay's Capital A/c. Rs. 2000; Cr. Chetan's Capital A/c. 8400].
Q. A and B are partners in a firm sharing profits or losses in the ratio of 2:3 with capitals of Rs. 400000 and Rs. 800000 resp. on 1st Apr, 2016. Each partner is entitled t0 10% p.a. interest on his capital. B is entitled a commission of 10% on net profit remaining after deducting interest on capital but before charging any commission. A is entitled a commission of 8% of net profit remaining after deducting interest on capital and after charging all commission. The profit for the year ended 31st March, 2017 prior to calculation of interest on capital was Rs. 600000. Prepare profit and loss Appropriation Account.
Pass necessary adjustment entry showing the working clearly.
making adjustments for profits and drawings were Rs 3,20.000, Rs 2,40.000 and Rs 1,60.000
respectively. Subsequently it was discovered that interest on capital and drawings had been omitted.
(i) The profit of the year ended 31st March, 2014 was Rs 90,000.
(ii) During the year, Esha and Manav each withdrew a sum of Rs 48,000 in equal instalments in the
middle of every month and Daman withdrew Rs 60,000
(iii) The interest on drawings was to be charged @ 5% p.a. and interest on capital was to be allowed @ 10%
(it') The profit-sharing ratio among the partners was 3:2:1
Showing your workings clearly, pass the necessary rectifying entry.
15. Reema and Seema are partner sharing profit equally. The partnership deep provides that both Reema and Seema will get monthly salary of Rs. 5,000 each. Interest on Capital will be allowed @ 5% P. A and interest on Drawings Will be Charged @ 10% p.a. Their capitals were Rs. 5,00,000 each and drawing during the year were Rs. 60.000 each.
The firm incurred a loss of Rs. 1,00.000 during the year ended 31st March, 2018.
Prepare Profit and loss Appropriation Account for the year ended 31st March. 2018.
How to score 100/100 in accountancy? what are the common mistakes students commit that they get 99, 98 etc? Is the narration also evaluated?
(A)Intrest on capital @ 2.5 % per annum.,
(B)salary to mudit 18,000 per annum and commission to udayRs.12,000.
(C) mudit was allowed a of 6% of divisible profit after charging such Commission.
pass a rectified general entry in the book of the form showing working. clearly. Plz get my ans.
Prepare Profit and Loss Appropriation Account.
(i) interest on capital and drawings will be allowed and charged @12% p.a. and 10% p.a. respectively.
(ii)K and P will entitled to get monthly salary of rs.2000 AND RS. 3000 respectively.
The profits for the year ended 31st march, 2010 were rs. 100300. the drawings of K and P were rs. 40000 and rs. 50000 respectively. interst on K'sdrawing was rs. 2000 and on P'sdrawings rs.2500.
Prepare Profit and Loss Appropriation A/c of K and P for the year ended 31st march, 2010 assuming that the capitals of partners were fluctuating.
who is a minor partner???
Ram and mohan are partners sharing profits and losses in the ratio 2:1. at the end of the year on 31st march,2011 they decided to take their manager sohan in to partnership with effect from 1st april,2008. as manager ,he was geeting an annual salary of rs24000 . he had also advanced rs30000 to the firm by way of a loan on which he was geeting interest @15% p.a.
during the three year firm profits after adjusting salary to sohan ,interest on loan and interest on capital of the partners were :::-
2009 profit 43900
2010 loss 20000
2011 profit 1,00,000
according to the new aggrement, sohan is to be given annual salary of rs16800 and 1/5 th share inthe profits of the firm . sohan's loan shall be treated as his capital from the begining and similar to other partners as his capital carry interest @10% p.a
RECORD THE JOURNAL ENTRY TO GIVE EFFECT TO THE ABOVE.
The capital accounts of A and B stood at Rs.400000 and Rs.300000 after necessary adjustments in respect of the drawings and the net profits for the year ended 31st march 2012. It was subsequently ascertained that 5 % p.a. interest on capital and drawings were not taken into account in arriving at the net profit. The drawings of the partners had been; A- Rs.12000 drawn at the end of each quarter and B- Rs.18000 drawn at the end of each half year. The profits for the year as adjusted amounted to Rs.200000. The partners share profits in the ratio 3:2.
You are required to paas the journal entries and show the adjusted capital accounts of the partners.
each. On 1st October, 2019, Ankit and Bhanu gave loans of 2,50,000 each to the firm whereas Charu took
a loan of 1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be
charged Interest @ 6% p.a. Interest on loan from partners was paid on 10th April, 2020. The firm closes its
books on 31st March each year.
Pass the Journal entries in the books of the firm for the year ended 31st March, 2020
T.S.Grewal's double entry book keeping page no.3.22 q.no. 12 , page no. 3.23 q.no. 13,14, page no.3.24 q.no.15,16
balances on March, 31, 2012 are 8000060000 and ?40,000 respectively
Their personal assets are worth as follows : XR20,000, Y-15,000 and
Z-310,000. The extent of their liability in the firm would be:
(A) X 80,000 Y-60,000 and Z-40,000
(B) X 20,000: Y-15,000: and Z-10,000
(C) X-1,00,000: Y-75,000 and Z-50,000
(D) Equal
(CS. Foundation, June 2013)
a) Business started with a capital of Rs 8,00,000
b) Furniture purchased in cash from Jai Rs. 38,000
c) Payment made to Raman Rs. 5,000
d) Commission Received from Suresh Rs. 2,000
e) Goods purchased from Ramlal Rs. 7,00,000
f) Rent paid to Anil Rs. 3,000
Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3 : 2. Following is the balance sheet of the firm as on March 31, 2013.
Amount
Amount
Liabilities
Rs
Assets
Rs
Mannu’s Capital
30,000
Drawings :
Shristhi’s Capital
10,000
40,000
Mannu
4,000
Shristhi
2,000
6,000
Other Assets
34,000
40,000
40,000
Profit for the year ended March 31, 2013 was Rs 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.
What is deferred revenue expenditure ?
(1)
Q2. A group of 60 persons want to form a partnership business in India. Can they do so? Give reason in support of your answer.?
(1)
Q3. At what rate will partners be entitled for remuneration in absence of partnership deed??
(1)
Q4. List anyone difference between Profit & Loss Appropriation Account and Profit & Loss Adjustment Account.
(1)
Q5. 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.?
(3)
Q6. Mohit and Rohan share profits and losses in the ratio of 2:1. They admit Rahul as partner with 1/4 share in profits with a guarantee that his share of profit shall be at least Rs. 50,000. The net loss of the firm for the year ending March 31, 2006 was Rs. 1,60,000. Pass an entry for distribution of profits and guarantee?
(3)
Q7. 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, guaranteed to be not less than Rs. 15,000 in any year.
(ii) Babita gives guarantee to the effect that 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 profession alone (which is Rs. 25,000). The net profit for the year ended March 31, 2007 is Rs. 75,000. The gross fee earned by Babita for the firm was Rs. 16,000.You are required to prepare P & L Appropriation A/c.?
(3)
Q8. Sasta , Khasta and Pasta are in partnership , sasta and khasta are sharing profits in ratio of 3:1 and pasta receiving an annual salary of 32000 plus 5% of the profits after charging his salary his commission , or ? share in profits whichever is more . Any excess latter over former recived by pasta is, under the partnership deed, to be borne by sasta and khasta in 3:2 . the profit for the year ended 31 march 2011 came to be Rs. 168000 after charging pasta?s salary . Show the distributions of profits among the partners.
(3)
Q9. The net profit of X, Y and Z for the year ended March 31, 2006 was Rs. 60,000 and the same was distributed among them in their agreed ratio of 3 : 1 : 1. It was subsequently discovered that the under mentioned transactions were not recorded in the books :
(i) Interest on Capital @ 5% p.a.
(ii) Interest on drawings amounting to X Rs. 700, Y Rs. 500 and Z Rs. 300.
(iii) Partner?s Salary : X Rs. 1000, Y Rs. 1500 p.a.
The capital accounts of partners were fixed as : X Rs. 1,00,000, Y Rs. 80,000 and Z Rs.60,000. Record the adjustment entry.?
(4)
Q10. On March 31, 2003, after the close of books of accounts, the capital accounts of Ram, Shyam and Mohan showed balance of Rs. 24,000 Rs. 18,000 and Rs. 12,000, respectively. It was later discovered that interest on capital @ 5% and interest on drawings @ 10% had been omitted. The profit for the year ended March 31, 2003, amounted to Rs. 36,000 and the partner?s drawings had been Ram, Rs. 3,600; Shyam, Rs. 4,500 and Mohan, Rs. 2,700. The profit sharing ratio of Ram, Shyam and Mohan was 3:2:1. Calculate interest on capital and pass adjustment entry.?
(4)
?
Q11. A and B are partners sharing profits and losses in the ratio of3: 1. On 1st April, 2013, their capitals were:A-Rs.50,000 and B- Rs.3000. During the year ended 31st March, 2014, they earned net profit of Rs.74,000. The terms of partnership are:
(i) Interest on the capital is to be charged @ 6% p.a.
(ii) A will get commission @ 2% on turnover.
(iii) B will get a salary of Rs.500 per month.
(iv) B will get commission of 5% on profits after deduction of interest, salary and commission (including his own commission).
(v) A is entitled to a rent of Rs. 2,000 per month for the use of his premises by the firm. It is paid to him by cheque at the end of every month.
Partners' drawings for the year were: A- Rs. 8,000 and B- Rs. 6,000.
Turnover for the year was Rs. 3,00,000. After considering the above factors, you are required to prepare
Profit and Loss Appropriation Account and Capital Accounts of the Partners.?
ram and shyam were partners in a firm. criditng profit of year 200000in their capital accont the balance of their were ram 400000 and shyam 300000 during the year ram withdraw 80000 and shyam 100000. it was found that interest on capital and drawings @10%p.a as provided in the agreement had not been allowed and charged to partner's capital account. pass adjustment entry
A , B , C were partners in a firm having capitals of rs. 50000, rs. 50000 and rs.100000. Thier current account balances were A : Rs.10000 , B : Rs.5000 and C : Rs.2000 (Dr.) . According to the partnership deed the partners were entitled to an interest on capital @ 10% p.a. C being the working partner was also entitled to a salary of Rs.12000p.a. The profits were to be divided as :
(a). The first Rs.20000 in proportion to their capitals.
(b). Next Rs. 30000 in the ratio of 5:3:2
(c). Remaining profits to be shared equally.
The firm made a profit of Rs.172000 before charging any of the above items . Prepare the profit and loss appropriation account and pass the necessary journal entries for the appropriation of profits.
Their current account balances were Rs. 10,000 , B Rs. 5,000 and C Rs, 2,000 (Dr.) According to the
partnership deed the partners were entitled to interest on capital @ 5% p.a. C being the working
partner is also entitled to a salary of Rs. 6,000 p.a. The profits were to be divided as follows :
The first Rs. 20,000 in proportion Of their capitals. Next Rs. 30,000 in the ratio of Remaining
profits to be shared equally.
The firm made a profit of Rs. 1,56,000 before charging any of the above items. Prepare the profit and
Loss Appropriation Account and pass the necessary journal entries for the appropriation of profits.
21. Ram and Laxman are partners in a firm sharing profits and Losses in the ratio of 3:2. The balance in
their capital accounts as on April, 2016. were: Ram Rs. 30,000 and Laxman Rs. 20,000. The partnership deed provides that Ram is to be paid salary @Rs. 500 p.m. and Laxman is to get commission @2% on total sales. Interest on capital and drawings is to be charged @6% p.a. The drawings Of Ram and Laxman for the year were Rs. 3,000 and Rs. 1,000 respectively. The profit earned by the firm before making above adjustments was Rs. 24,880. Total sales of the firm were Rs. 2,00,000
Prepare necessary accounts when capital accounts are fixed.
what is difference between drawings and withdrawn capital?
When should we calculate interest on drawings for six months????
When it is given in the question that calculate interest on drawings i) @ 6% what to do?
ii) @ 6% p.a. what to do?
Following information is Provided regarding the Partnership
(i) Shiv Hari each are allowed a Salary of Rs 5000 per Quarter .
(ii) Interest is to be allowed on Capitals @ 8+ P.A. and Charged on Drawings at 10+ P.A.
Drawings of Shiv Hari during the year were Rs 12,000 and Rs 10,000 respectively. Profit as 31st March ,2016 before the above mentioned adjustments was Rs 1,96,000. Prepare
(i) Necessary Journal Entries relating to appropriation of Profits.
(ii) Profit Loss Appropriation A+C , and
(iii) Partner’s Capital A+C.
3,00,000 respectively. Their partnership deed provides that :
(a) A is to be allowed a monthly salary of 600 and B is to be allowed a
monthly salary of 400.
(b) C will be allowed a commission of 5% of the net profit after
allowing salaries of A and B.
(c) Interest is to be allowed on capitals @ 6%.
(d) Interest will be charged on partners annual drawings at 4%.
(e) The annual drawings were :B 10,000 and C 15,000.
The net profit for the year ending 31st march, 2014 amounted to
1,72,000.
Prepare P&L Appropriation account.
[Ans: Share of profit 39,000 to each partner.]
where we post provident fund in revaluation acoount?
Mohan, Vijay and Anil are partners, the balance on their capital accounts being Rs 30,000, Rs 25,000 and Rs 20,000 respectively. In arriving at these figures, the profits for the year ended March 31, 2007 amounting to Rupees 24,000 had been credited to partners in the proportion in which they shared profits. During the tear their drawings for Mohan, Vijay and Anil were Rs 5,000, Rs 4,000 and Rs 3,000, respectively. Subsequently, the following omissions were noticed:
(a)
Interest on Capital, at the rate of 10% p.a., was not charged.
(b)
Interest on Drawings: Mohan Rs 250, Vijay Rs 200, Anil Rs 150 was not recorded in the books.
Record necessary corrections through journal entries.
R and S were partners in a firm sharing profits in 3:2 ratio. their respective fixed capitals were rs. 10,00,000 and 15,00,000. the partnership deed provided the following:
1) interest on capital @10% p.a.
2) interest on drawing @12% p.a.
During the year ended 31-03-2007, R's drawings were rs. 1000 p.m. drawn at the end of every month and S's drawings were rs.2000 p.m. drwan in the beginning of every month. After the preparation of final accounts for the year ended 31-03-2007 it was discovered that interest on R's drawings was not taken into consideration.
Calculate interest on R's drawings and give necessary adjusting entry for the same.
please help me with class 12th accountancy project
X and Y contribute Rs.20000 and Rs.10000 . They decide to allow interest on capital @ 6% p.a. Their respective share of profits is 2:3 and the business profit ( before interest ) for the year is Rs.1500. Show the distribution of profit (i). where there is no agreement except for interest on capitals. (ii) . where there is a clear agreement that the interest on capitals will be allowed even if it involves thr firm in loss.