Samacheer Kalvi solutions for Accountancy [English] Class 12 TN Board chapter 3 - Accounts of partnership firms–fundamentals [Latest edition]

In the absence of a partnership deed, profits of the firm will be shared by the partners in _____________.

In the absence of an agreement among the partners, interest on capital is ___________.

As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is ___________.

Which of the following is shown in the Profit and loss appropriation account?

When fixed capital method is adopted by a partnership firm, which of the following items will appear in the capital account?

When a partner withdraws regularly a fixed sum of money at the middle of every month, the period for which interest is to be calculated on the drawings on an average is ___________.

Which of the following is the incorrect pair?

In the absence of an agreement, partners are entitled to _________.

Pick the odd one out

Profit after interest on drawings, interest on capital and remuneration is ₹ 10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission.

Define partnership.

What is a partnership deed?

What is meant by the fixed capital method?

What is the journal entry to be passed for providing interest on capital to a partner?

Why is the Profit and loss appropriation account prepared?

State the features of partnership.

State any six contents of a partnership deed.

State the differences between the fixed capital method and fluctuating capital method.

Write a brief note on the applications of the provisions of the Indian Partnership Act, 1932 in the absence of a partnership deed.

Jayaraman is a partner who withdrew ₹ 10,000 regularly in the middle of every month. Interest is charged on the drawings at 6% per annum. Calculate interest on drawings for the year ended 31^st December, 2018.

Akash, Bala, Chandru and Daniel are partners in a firm. There is no partnership deed. How will you deal with the following?

1. Akash has contributed maximum capital. He demands interest on capital at 10% per annum.
2. Bala has withdrawn ₹ 3,000 per month. Other partners ask Bala to pay interest on drawings @ 8% per annum to the firm. But, Bala did not agree to it.
3. Akash demands the profit to be shared in the capital ratio. But, others do not agree.
4. Daniel demands salary at the rate of ₹  10,000 per month as he spends full time for the business.
5. Loan advanced by Chandru to the firm is ₹ 50,000. He demands interest on loan @ 12% per annum.

From the following information, prepare capital accounts of partners Rooban and Deri, when their capitals are fixed.

Arun and Selvam are partners who maintain their capital accounts under fixed capital method. From the following particulars, prepare capital accounts of partners.

From the following information, prepare capital accounts of partners Padmini and Padma, when their capitals are fluctuating.

Mannan and Ramesh share profits and losses in the ratio of 3 : 2 and their capital on 1^st April, 2018 was Mannan ₹ 1,50,000 and Ramesh ₹ 1,00,000 respectively and their current accounts show a credit balance of ₹ 25,000 and ₹ 20,000 respectively. Calculate interest on capital at 6% p.a. for the year ending 31^st March, 2019 and show the journal entries.

Prakash and Supria were partners who share profits and losses in the ratio of 5 : 3. Balance in their capital account on 1^st April, 2018 was Prakash ₹ 3,00,000 and Supria ₹ 2,00,000. On 1^st July, 2018 Prakash introduced additional capital of ₹ 60,000. Supria introduced additional capital of ₹ 30,000 during the year. Calculate interest on capital at 6% p.a. for the year ending 31^st March, 2019 and show the journal entries.

The capital account of Begum and Fatima on 1^st January, 2018 showed a balance of ₹ 50,000 and ₹ 40,000 respectively. On 1^st October, 2018, Begum introduced an additional capital of ₹ 10,000 and on 1^st May, 2018 Fatima introduced an additional capital of ₹ 9,000.
Calculate interest on capital at 4% p.a. for the year ending 31^st December, 2018.

From the following balance sheets of Subha and Sudha who share profits and losses in 2 : 3, calculate interest on capital at 5% p.a. for the year ending 31^st December, 2018.

Balance sheet as on 31^st December, 2018

Drawings of Subha and Sudha during the year were ₹ 8,000 and ₹ 10,000 respectively. Profit earned during the year was ₹ 30,000.

From the following balance sheets of Rajan and Devan who share profits and losses 2 : 1, calculate interest on capital at 6% p.a. for the year ending 31^st December, 2018.

Balance sheet as on 31^st December, 2018

On 1^st April, 2018, Rajan introduced an additional capital of ₹ 40,000 and on 1^st September, 2018, Devan introduced ₹ 30,000. Drawings of Rajan and Devan during the year were ₹ 20,000 and ₹ 10,000 respectively. Profit earned during the year was ₹ 70,000.

Ahamad and Basheer contribute ₹ 60,000 and ₹ 40,000 respectively as capital. Their respective share of profit is 2 : 1 and the profit before interest on capital for the year is ₹ 5,000. Compute the amount of interest on capital in each of the following situations:

1. if the partnership deed is silent as to the interest on capital
2. if interest on capital @ 4% is allowed as per the partnership deed
3. if the partnership deed allows interest on capital @ 6% per annum.

Mani is a partner, who withdrew ₹ 30,000 on 1^st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31^st December, 2018 and show the journal entries by assuming that fluctuating capital method is followed.

Santhosh is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31^st December, 2018 he withdrew as follows:

Calculate the amount of interest on drawings.

Kumar is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31^st December, 2018 he withdrew as follows:

Calculate the amount of interest on drawings.

Mathew is a partner who withdrew ₹ 20,000 during the year 2018. Interest on drawings is charged at 10% per annum. Calculate interest on drawings on 31^st December 2018.

Santhosh is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31^st December, 2018 he withdrew as follows:

Calculate the amount of interest on drawings by using the product method.

Kavitha is a partner in a firm. She withdraws ₹ 2,500 p.m. regularly. Interest on drawings is charged @ 4% p.a. Calculate the interest on drawings using average period, if she draws

1. at the beginning of every month
2. in the middle of every month
3. at the end of every month

Kevin and Francis are partners. Kevin draws ₹ 5,000 at the end of each quarter. Interest on drawings is chargeable at 6% p.a. Calculate interest on drawings for the year ending 31^st March 2019 using the average period.

Ram and Shyam were partners. Ram withdrew ₹ 18,000 at the beginning of each half year. Interest on drawings is chargeable @ 10% p.a. Calculate interest on the drawings for the year ending 31^st December 2018 using the average period.

Janani, Kamali and Lakshmi are partners in a firm sharing profits and losses equally. As per the terms of the partnership deed, Kamali is allowed a monthly salary of ₹ 10,000 and Lakshmi is allowed a commission of ₹ 40,000 per annum for their contribution to the business of the firm. You are required to pass the necessary journal entry. Assume that their capitals are fluctuating.

Sibi and Manoj are partners in a firm. Sibi is to get a commission of 20% of net profit before charging any commission. Manoj is to get a commission of 20% on net profit after charging all commission. Net profit for the year ended 31^st December 2018 before charging any commission was ₹ 60,000. Find the commission of Sibi and Manoj. Also, show the distribution of profit.

Anand and Narayanan are partners in a firm sharing profits and losses in the ratio of 5 : 3. On 1^st January 2018, their capitals were ₹ 50,000 and ₹ 30,000 respectively. The partnership deed specifies the following:

1. Interest on capital is to be allowed at 6% per annum.
2. Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800 respectively.
3. Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800 respectively.

Give necessary journal entries and prepare profit and loss appropriation account as on 31^st December 2018. Assume that the capitals are fluctuating.

Dinesh and Sugumar entered into a partnership agreement on 1^st January 2018, Dinesh contributing ₹ 1,50,000 and Sugumar ₹ 1,20,000 as capital. The agreement provided that:

1. Profits and losses to be shared in the ratio 2 : 1 as between Dinesh and Sugumar.
2. Partners to be entitled to interest on capital @ 4% p.a.
3. Interest on drawings to be charged Dinesh: ₹ 3,600 and Sugumar: ₹ 2,200
4. Dinesh to receive a salary of ₹ 60,000 for the year, and
5. Sugumar to receive a commission of ₹ 80,000

During the year ended on 31^st December 2018, the firm made a profit of ₹ 2,20,000 before adjustment of interest, salary and commission. Prepare the Profit and loss appropriation account.

Antony and Ranjith started a business on 1^st April 2018 with capitals of ₹ 4,00,000 and ₹ 3,00,000 respectively. According to the Partnership Deed, Antony is to get the salary of ₹ 90,000 per annum, Ranjith is to get 25% commission on profit after allowing salary to Antony and interest on capital @ 5% p.a. but after charging such commission. The profit-sharing ratio between the two partners is 1 : 1. During the year, the firm earned a profit of ₹ 3,65,000.
Prepare profit and loss appropriation account. The firm closes its accounts on 31^st March every year.