Plus Two Accountancy , Chapter 1 Expected Questions

 1.Verma and Kaul are partners in a firm. The partnership agreement provides that interest on drawings should be charged @ 6% p.a. Verma withdraws Rs. 2,000 per month starting from April 01, 2016 to March 31, 2017. Kaul withdrew Rs, 3,000 per quarter, starting from April 01, 2016. Calculate interest on partner’s drawings

2.Rani and Suman are in partnership with capitals of Rs, 80,000 and Rs. 60,000, respectively. During the year 2006-2007, Rani withdrew Rs. 10,000 from her capital and Suman Rs. 15,000. Profits before charging interest on capital was Rs. 50,000. Ravi and Suman shared profits in the ratio of 3:2. Calculate the amounts of interest on their capitals @ 12% p.a. for the year ended March 31, 2007.

3.Gupta and Sarin are partners in a firm sharing profits in the ratio of 3:2. Their fixed capitals are: Gupta 2,00,000, and Sarin 3,00,000. After the accounts for the year are prepared it is discovered that interest on capital @10% p.a. as provided in the partnership agreement, has not been credited in the capital accounts of partners before distribution of profits. Record adjustment entry to rectify the error.

4.Krishna, Sandeep and Karim are partners sharing profits in the ratio of 3:2:1. Their fixed capitals are: Krishan Rs. 1,20,000, Sandeep 90,000 and Karim 60,000.

For the year 2006-07, interest was credited to them @ 6% p.a. instead of 5% p.a. Record adjustment entry

5.Why it is considered desirable to make the partnership agreement in writing?

6.Give two circumstances under which the fixed capitals of partners may change.

7.Illustrate how interest on drawings will be calculated under various situations.

8.How will you deal with a change in profit sharing ratio among existing partners?

9.Rakhi and Shikha are partners in a firm, with capitals of Rs. 2,00,000 and Rs, 3,00,000 respectively. The profit of the firm, for the year ended 2006-07 is Rs. 23,200. As per the Partnership agreement, they share the profit in their capital ratio, after allowing a salary of Rs. 5,000 per month to Shikha and interest on Partner’s capital at the rate of 10% p.a. During the year Rakhi withdrew Rs. 7,000 and Shikha Rs. 10,000 for their personal use. You are required to prepare Profit and Loss Appropriation Account and Partner’s Capital Accounts.

10.Rishi is a partner in a firm. He withdrew the following amounts during the year ended March 31, 2007.

May 01, 2006 Rs. 12,000

July 31, 2006 Rs. 6,000

September 30, 2006 Rs. 9,000

November 30, 2006 Rs. 12,000

January 01, 2007 Rs. 8,000

March 31, 2007 Rs. 7,000

Interest on drawings is charged @ 9% p.a. Calculate interest on drawings