XI accountancy CBSE Board
Do you hink the Accountant has correctly recorded the interest on the loan? Give reason for your reply. 7. Write down the main features of Partnership. 8. When does the need for valuation of internally generated goodwill arise? Y IT tne amount 0T super pront Is negatlve, wnat does It Inalca e 10. Prithvi is admitted to the partnership and the goodwill he was to bring in is Rs. 50, 000. But, he is not in a position to bring in the goodwill. The accountant has recorded an entry in the books of account debiting ‘Goodwill Account’ and crediting ‘Sacrificing Partner’s Capital Account’.
Do you think, he has recorded the entry correctly? Give reasons for your reply. 11. X and Y are partners sharing profits in the ratio of 3:2. Z Joins for 1/6 th share in the running business on 1st April 2011. Z was given guarantee of Rs. 48,000 per annum but unfortunately Z died on 1 st July 2011. Profit during the current year to be accrued on the same scale as in the previous year. Profit earned during the year was Rs. Calculate the amount of deficiency borne by X and Y. 3 Marks 12. Write down the provisions applicable in the absence of Partnership Agreement. 3 Marks 13. X, Y and Z are partners sharing profit equally.
X drew regularly Rs. ,000 at the beginning of every month for six months ended 30th September 2011. Y drew regularly Rs. 4,000 at the end of every month for six months ended 30th September 2011. Z drew regularly Rs. 4,000 at the middle of every month for six months ended 30 th September 2011. Calculate the interest on drawings for X, Y and Z at 5%p. a. 3 Marks 14. Write down three differences between drawings against profit and drawings against capital. 3 Marks 15. The average profit of the firm is Rs. The total tangible assets in the firm are Rs. 14, 00,000 and outside liabilities are Rs.
In the same type of usiness, the normal rate of return is 10% of the capital employed. Calculate the value of goodwill by Capitalisation of Super Profit Method. 4 Marks 16. A and B are partners in a firm. Their respective capital contributions are Rs. 3, 00,000 and Rs. and their profit sharing ratio is 3:2. Immediately after the allocation of Rs. 80, 000 as profit for the year ended 31st march 2011, it was discovered that in arriving at the profit of 2010-11 the following two items were ignored: i. Outstanding expenses of Rs. 7,000 and i’. Accrued interest on investment of Rs. 5,000. Pass the adjustment Journal entry. Marks 17. Write down the differences between fixed and fluctuating capital Accounts. 4 18. Mark and Pat are partners in a business. Their capitals at the end of the year were Rs 4BUUU ana Rs 36,000 respectlvely. During tne year enaea 31st Marcn, 2 Marks drawings and Pat’s drawings were Rs. 8,000 and Page 1 of 3 Rs. 12, 000 respectively. Profits before charging interest on capital during the year were Rs. 32, 000. Calculate the interest on capital at 5% for the year ended 31 st March 2011. 4 Marks 19. A and B shared profits and losses in the ratio of 3:2. With effect from 1st April 2011 they agreed to share profits equally.
The goodwill of the firm was valued at Rs. 30,000. Make the necessary Journal entry for the treatment of goodwill. What is a ‘Gaining Ratio? (3+1)marks 20. A, B and C were partners sharing profits in the ratio of 5:3:2. Their Balance sheet as at 1 st April 2012 was as follows: Balance Sheet of A, C at 1st April, 2012 Liabilities Creditors Employees Provident funds Fund Capitals: c 70,000 50,000 Amount Assets 20,000 cash 26,000 Debtors Stock Furniture Building 2, 20,000 266,000 16,000 80,000 34,000 C retires on the above date and it was agreed that: C’s share of Goodwill was Rs. ,OOO; % provision for doubtful debts was to be made on debtors; Sundry creditors were valued Rs. 4, 000 more than the book value. Pass necessary journal entries for the above transactions on C’s retirement. 21 . Ram, Shyam and Gita were partners sharing profits in the ratio of 5:3:2. On 31 st March 2012 their Balance Sheet showed the following: Capitals: Ram 1 50,000 Shyam 125,000 Gita 75000 Workmen’s Compensation reserve Capital Leasehold Patents Machinery 350,000 stock 30,000 cash at sank 30,000 40,000 Gita died on August 2012. It was agreed that: l.
Goodwill of the firm is to be valued at Rs. 1,75,OOO II. Machinery be valued at Rs. 1, 40,000; Patents at Rs. 40, 000; Leasehold at Rs. l, 50,000 on this date. Ill. For the purpose of calculating Gita’s share in the profits of 2012-2013, the profits should be taken to have accrued on the same scale as in 2011- 2012 which were Rs. 75,OOO Prepare Gita’s Capital Account and Revaluation Account. 6 marks 22. X and Y are in partnership sharing profits and losses in the ratio of 3:2. The capitals of X and Y remaining after the adjustments are Rs. 80, 000 and Rs. 0, 000 respectively. They admit Z as a partner on his contribution of Rs. 35,000 as capital for 15th share of profits to be acquired equally from both X and Y. The capital accounts of old partners are to be adjusted on the basis of proportion of Z’s capital to his share in the business. Calculate the amount of actual cash to be paid off or brought in by the old partners for the purpose. 6 marks 23. John and David were partners in a firm supplying school uniform. They share profits in the ratio of 4:3. Their capital as on 1st April 2012 were and Rs. 50,000 respectively.
On this date John suggested David to start supplying low cost school uniforms also to the students who belong to low income group and have been dmitted to the private schools of the city as per the provision of Rights to Education Act 2009. David agreed and requested to admit his friend Sita, a visually handicapped unemployed person into the firm; however Sita will not contribute any capital. John agrees to it. They were in need of more capital. John therefore persuaded a rich friend of his, All, who Joined them to be a partner. Ali contributed Rs. 7, 00,000 in cash. Delivery van of Rs. 2,75,OOO and furniture of Rs. 25,000 as his capital.