Question Bank

1. A and B are partners sharing profits in the ratio of 3 : 2 with capitals of Rs. 50,000 and Rs. 30,000
respectively. Interest on capital is agreed @ ! p.a. B is to "e allowed an ann#al salary of Rs.
2,500. $#ring 200, the profits of the year prior to calc#lation of interest on capital "#t after
charging B%s salary a&o#nted to Rs. '2,500. A provision of 5! of the profits is to "e &ade in
respect of (anager%s co&&ission. )repare an acco#nt showing the allocation of profits and
partners% capital acco#nts.
*.2 + and , are partners sharing profits and losses in the ratio of 3 : 2 with capitals of Rs. 50,000 and Rs.
30,000 respectively. -ach partner is entitled to ! interest on his capital. + is entitled to a salary of Rs.
.00 per &onth together with a co&&ission of '0! of net %)rofit re&aining after ded#cting interest on
capitals and salary "#t "efore charging any co&&ission. , is entitled to a salary of Rs. 00 per .&onth
together I. with/a co&&ission of '0! of 0et profit re&aining after ded#cting interest on capitals and
salary and after charging all co&&issions. 1he profits for the year prior to calc#lation of interest on
capital "#t after charging salary of partners a&o#nted to Rs. 20,000. )repare partners% 3apital Acco#nts :./
a. 4hen capitals are fi5ed , and 6ii7 when capitals are. fl#ct#ating.
2. Ra& and 8hya& were partners in a fir&. 1he partnership agree&ent provides that:
a. )rofit sharing ratio will "e 93 : 2.
". Ra& will "e allowed a salary of Rs. 500 p.&.
c. 8hya& who &anages the sales depart&ent will "e allowed a co&&ission e:#al to '0! of the net
profit after allowing Ra&%s salary. %
d. .! interest will "e allowed on partners% fi5ed capitals.
e. ! interest will "e charged on partners% ann#al drawings.
f. 1he fi5ed capitals of Rain and 8hya& were Rs. 2,00,000 and Rs. ',50,000 respectively. 1heir
ann#al drawings were Rs. '.,000 and Rs. '5,000 respectively. 1he net profit for the year ended
nearly a&o#nted to Rs. 0,000. )repare fir&s )rofit and ;oss Appropriation Acco#nt.
Opening Balance of
Capital
4860
0
Interest on Capital 2500
Additional Capital
Introduced 5000
Drawings 6000
Closing Balance of
Capital
6000
0
Closing Balance of Capital
25000
0
Additional Capital Introduced 25000
Drawings 50000
Opening Balance of Capital
17500
0
Interest on Capital 65000
Closing Balance of Capital
10000
0
Drawings 25000
Additional Capital Introduced 10000
Interest on Capital 5000
Opening Balance of Capital 80000
Closing Balance of Capital 80000
Drawings 000
Additional Capital Introduced !
Interest on Capital 8000
Opening Balance of Capital 55000
"ro#t 10000