ISC (Commerce) Class 12 - CISCE Important Questions for Accounts

Mita and Sita, sharing profits in, the ratio 2 : 1, decided to dissolve their partnership firm on 31^st March, 2022, on which date their Balance Sheet was as under:

The partnership firm was dissolved on the date of the Balance Sheet subject to the following adjustments:

1. Trade creditors accepted plant and machinery at an agreed valuation of 10% less than the book value and the balance in cash in full settlement of their claims.
2. Debtors of ₹ 1,000 proved bad.
3. Sita took over the stock at a discount of 20%.
4. Realisation expenses of ₹ 1,100 were paid by the firm.

You are required to prepare the Realisation Account.

Benu and Leena are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admit Deepa and Erica as two new partners.
The new profit-sharing ratio is decided to be 3 : 2 : 2 : 3.
Both the new partners introduce ₹ 1,00,000 each as capital.
Deepa pays ₹ 40,000 in cash for her share of goodwill but Erica is unable to contribute any amount for her share of goodwill.
At the time of Deepa's and Erica's admission, the firm had an Advertisement Suspense Account of ₹ 56,000 which is written off.

You are required to pass necessary journal entries to record the above adjustments at the time of admission of Deepa and Erica.

Greg and Rohit are partners in a firm sharing profits and losses in the ratio of 2 : 3.

Their Balance Sheet as at 31^st March, 2022, is given below:

On 1^st April, 2022, they admit Kunal as a new partner on the following terms:

1. The new profit-sharing ratio of Greg, Rohit and Kunal is to be 5 : 3 : 2.
2. Kunal to bring his share of capital of ₹ 25,000 and his share of goodwill of ₹ 5,000 in cash.
3. Office Equipment to be valued at ₹ 42,000.

You are required to prepare Partners' Capital Accounts.

On the date of admission of Ajay as a partner, the Balance Sheet of the firm of Nita and Rita showed a balance of ₹ 80,000 in the Workmen Compensation Reserve.

Choose the correct option to record the effect of a workmen compensation claim of ₹ 90,000 on the accounts of the partnership firm.

Choose the correct order in which a partnership firm, at the time of its dissolution, will apply the amount realised from the sale of its assets, including any amount contributed by the partners, towards the payment of:

P: Partners' loan

Q: Firm's debts

R: Balance of partners' capital

S: Surplus divided amongst the partners in their profit-sharing ratio

Assertion: A revaluation account is prepared at the time of dissolution of a partnership.

Reason: A revaluation account is prepared to determine the net gain/loss on realisation of assets and settlement of liabilities.

Which one of the following is correct?

A firm having a debtor of ₹ 30,000 from whom the amount was due on 30^th June, 2023, gets dissolved on 31st March, 2023. The debtor cleared his dues on the date of dissolution of the firm at a discount of 4% per annum.

Give the journal entry passed by the firm to realise the payment from the debtor.

Deepa and Pia are in partnership sharing profits and losses in the ratio of 3:2. They admit Charu as a partner for 1/5 share in the profits. The capitals of Deepa and Pia, before adjusting the loss of ₹ 5,000 on revaluation of assets and liabilities, are ₹ 30,000 and ₹ 20,000 respectively. It is decided that Charu will contribute 25% of the combined capitals of Deepa and Pia. What is Charu's capital contribution?

Kamal, Ali and John are partners in a firm. On Kamal's retirement from the firm on 30^th June, 2023, his capital account stood at ₹ 40,000 after all adjustments.
The partners decided that Kamal be paid 50% of the amount due to him immediately and the balance, alongwith interest @ 6% per annum, be paid on 30th June, 2024.
The firm closes its books on 31st March every year.

You are required to prepare Kamal's Loan Account till it is finally closed.

Amay and Sujoy are partners sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet as at 31st March, 2023, is given below.

On 1st April, 2023, they admit Malay as a new partner for 1/4 share in the profits on the following terms:

1. Malay to bring his share of capital of ₹ 1,20,000 and to pay ₹ 10,000 in cash for his share of goodwill.
2. Stock worth ₹ 45,000 to be taken over by Amay at ₹ 25,000.
3. Bills Payable of ₹ 20,000 to be honoured by Sujoy, for which he is not to be reimbursed.
4. The capitals of Amay and Sujoy to be adjusted on the basis of Malay's Capital and his share in the profits, any surplus to be readjusted through current account and deficiency through cash.

You are required to prepare the Partners' Capital Accounts.

Mitu and Ritu are partners sharing profits and losses in the ratio of 2 : 3. An extract of their Balance Sheet as at 31^st March, 2023, is given below:

On 1^st April, 2023, they admit Nitu as a new partner for 1/5 share in the profits on the following terms regarding the treatment of the reserves and the accumulated losses:

1. Accumulated losses, if any, to be written off.
2. A workmen compensation claim of ₹ 10,000 to be adjusted against the Workmen Compensation Reserve. The balance of the reserve is not to be distributed.
3. Any loss in the value of investments to be adjusted against the Investment Fluctuation Reserve. The balance of the Investment Fluctuation Reserve is to be distributed.
4. Provision for doubtful debts to be created to the extent of 10% of the debtors from the General Reserve. The remaining amount in the General Reserve is to be distributed.

You are required to pass the necessary journal entries to record the above adjustments at the time of Nitu's admission.

Adit and Shiv were partners sharing profits and losses in the ratio of 5 : 4. They dissolved their partnership firm on 31^st March 2023, when their Balance Sheet showed the following balances:

On the date of dissolution of the firm:

1. The firm suffered a loss of ₹ 18,000 upon realisation of assets and settlement of liabilities.
2. The expenses of dissolution of ₹ 3,000, to be borne by Shiv, were paid by the firm on his behalf.
3. The firm had furniture of ₹ 15,000. Adit took over some pieces of the furniture at ₹ 9,000 (being 10% less than the book value). Shiv took over the remaining furniture at 80% of its book value.

You are required to prepare the Partners Capital Accounts.

On the admission of Adil as a partner, the capitals of Rohan and Pavan, after all adjustments, were ₹ 50,000 and ₹ 40,000. Their capitals before Adil’s admission were ₹ 45,000 and ₹ 48,000.

The capital account of the partner having surplus capital was adjusted through his current account by passing the journal entry:

Ira (a partner in a firm) was allowed to retain the whole of the stock as her remuneration for services rendered by her in the course of dissolution of the firm. The value of stock was ₹ 10,000 which had been transferred to the Realisation Account.

Complying with the accounting principle of full disclosure, record the above transaction in the books of the partnership firm at the time of its dissolution.

Mention the liability of a partnership firm which is not shown in its Balance Sheet, but is paid off at the time of the dissolution of the firm.

Mita, Sita and Rita are partners in a firm. Rita retires from the firm on 31st March, 2024. Her claim, including her capital and her share of goodwill, is determined at ₹ 2,50,000. On this date the firm’s books showed:

1. An unrecorded investment valued at ₹ 60,000 which was given to an unrecorded creditor of ₹ 1,16,000 in settlement of his claim of ₹ 70,000.
2. An unrecorded vehicle which was given to Rita at the market value of ₹ 46,000 in part settlement of her claim.

The balance of Rita’s claim was discharged by cheque.

You are required to pass journal entries to record the above transactions in the books of the firm on 31st March, 2024.

Akshat, Javed and Gaurav are partners in a firm sharing profits in the ratio of 5 : 3 : 7. Akshat died on 31st March, 2024. Javed and Gaurav decided to share the profits in reconstituted firm in the ratio 2 : 3. The capital accounts of the partners on 31st March, 2024, before considering the firm’s goodwill were:

After considering the adjustment for goodwill, Akshat’s share was determined to be ₹ 1,81,000. It was decided that this amount would be paid to Akshat’s executor immediately by the firm through a cheque, the amount being contributed by Javed and Gaurav in such a manner that their capitals would become proportionate to their new profit-sharing ratio.

You are required to pass journal entries to record:

1. The adjustment for self-generated goodwill of the firm.
2. Cash brought in by Javed and Gaurav to pay off Akshat’s executor.
3. Payment made to Akshat’s executor.

Kriti and Atif are partners sharing profits and losses equally. On 31st March, 2024, they admitted David as a third partner for `1/5` share in the profits.

It is decided that on David’s admission:

• Atif would retain his original share
• Goodwill would be valued by the super profit method on the basis of the following information:

1. Balance Sheet of Kriti and Atif (an extract)
   As at 31st March, 2024
   Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
   General Reserve		25,000	Current A/c:
   Capital A/c:		4,25,000	Atif	10,000
   Kriti	2,50,000
   Atif	1,75,000
   Current A/c:
   Kriti		40,000

2. The normal rate of return is 12% per annum.
3. Average profits of the firm for last four years are ₹ 74,000.

You are required to calculate:

1. The sacrificing ratio of the partners.
2. The value of goodwill of the firm at four years’ purchase of the super profit.

Anita and Anil are partners in a firm. On 1st April, 2024, they admitted Jia as a third partner. The capital accounts of the partners after considering the following adjustments on Jia’s admission are given below:

1. Loss on revaluation due to depreciation on machinery @ 20% per annum.
2. The General Reserve maintained in the old firm was not to be disturbed in the reconstituted firm.

Partners’ Capital Accounts

Additional information:

On 31st March, 2024, the firm of Anita and Anil, apart from plant and machinery and a bank balance of ₹ 2,15,000, had no other asset. You are required to prepare the Balance Sheet of the reconstituted firm on the date of Jia’s admission after considering the information given above.

Atul and Peter were partners in a firm sharing profits and losses in the ratio of 3 : 5. They dissolved their firm on 31st March, 2024, when their Balance Sheet showed the following balances:

On the date of dissolution of the firm:

1. Peter paid the realisation expenses of ₹ 2,000 on behalf of the firm.
2. Atul discharged his wife’s loan of ₹ 5,000 which she had given to the firm.
3. The dissolution resulted in a profit of ₹ 24,000 from the realisation of assets and settlement of liabilities.

You are required to pass journal entries to close the books of the firm (including the entries to show the final settlement of the amount due from the partners/due to the partners by the firm).