1ST UNIT TEST, 2020-21

CLASS: XII Time Allotted: 1 Hour 30Mins.

ACCOUNTANCY Maximum Marks: 30

1) In the absence of Partnership Deed, what are the rules relation to: (1)
(a) Salaries of partners,
(b) Interest on partners capitals.

2) A and B are partners sharing profits equally. A drew regularly ₹ 4,000 at the end of every
month for the year ending 31st September, 2018. Calculate interest on drawings @ 5%
p.a. for the period. (1)

3) Harshad and Dhiman are in partnership since 1st April, 2017. No partnership agreement
was made. They contributed Rs 4,00,000 and 1,00,000 respectively as capital. In addition,
Harshad advance an amount of Rs 1,00,000 to the firm on 1st October, 2017. Due to long
illness, Harshad could not participate in business activities from 1st August to 30th
September, 2017. The profit for the year ended 31st March, 2018 amounted to Rs
1,80,000. Dispute has arisen between Harshad and Dhiman.
Harshad Claims:
a) He should be given interest @ 10% per annum on capital and loan;
b) Profit should be distributed in proportion of capital;
Dhiman Claims:
(i) Profit should be distributed equally;
(ii) He should be allowed Rs 2,000 p.m. as remuneration for the period he managed
the business in the absence of Harshad;
(iii) Interest on Capital and loan should be allowed @ 6% p.a.
You are required to settle the dispute between Harshand and Dhiman. Also prepare
Profit and Loss Appropriation Account. (3)

4) C and D are partners in a firm; C has contributed ₹ 1,00,000 and D ₹ 60,000 as capital.
Interest in payable @ 6% p.a. and D is entitled to a salary of ₹ 3,000 per month. In 2017-
18, the profit was ₹ 8,000 before interest and salary. Divide the amount between C and D.
(3)
5) X and Y contribute ₹ 20,000 and ₹ 10,000 respectively towards capital. They decide to
allow interest on capital @ 6% p.a. Their respective share of profits is 2:3 and the net
profit for the year is ₹ 1,500. Show distribution of profits:
(2+2=4)
a) where there is no agreement except for interest on capitals; and
b) where there is an agreement that the interest on capital as a charge.

6) Amit and Vijay started a partnership business on 1st April,2017. Their capital
contributions were ₹ 2,00,000 and ₹ 1,50,000 respectively. The Partnership Deed
provided that:
a) Interest on capital be allowed @ 10% p.a.
b) Amit to get a salary of ₹ 2,000 per month and Vijay ₹ 3,000 per month.
c) Profits are to be shared in the ratio of 3 : 2.
 Profit for the year ended 31st March, 2018 before above appropriations was ₹ 2,16,000.
Interest on drawings amounted to ₹ 2,200 for Amit and ₹ 2,500 for Vijay. Prepare Profit
and Loss Appropriation Account. Show how the following will be recorded in the Capital
Accounts of the Partners Amit and Vijay when their capitals are fluctuating. (3+3=6)

7) A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2017,
their capitals were: A ₹ 50,000 and B ₹ 30,000. During the year ended 31st March, 2018
they earned a net profit of ₹ 50,000. The terms of partnership are:
a) Interest on capital is to allowed @ 6% p.a.
b) A will get a commission @ 2% on turnover.
c) B will get a salary of ₹ 500 per month.
d) B will get commission of 5% on profits after deduction of all expenses
including such commission.
Partners drawings for the year were: A ₹ 8,000 and B ₹ 6,000. Turnover for the year was
₹ 3,00,000. Pass Journal Entries after considering the above facts. (6)

8) A, B and C were partners in a firm having capitals of ₹ 50,000; ₹ 50,000 and ₹ 1,00,000
respectively. Their Current Account balances were A: ₹ 10,000; B: ₹ 5,000 and C:
₹2,000(Dr.). According to the Partnership Deed the partners were entitled to an interest
on Capital @ 10% p.a. C being the working partner was also entitled to a salary of ₹
12,000 p.a. The profits were to be capitals:
a) The first ₹ 20,000 in proportion to their capitals.
b) Next ₹ 30,000 in the ratio of 5:3:2.
c) Remaining profits to be shared equally.
The firm earned net profit of ₹ 1,72,000 before charging any of the above items.
Prepare Profit and Loss Appropriation Account Partners, Capital A/c and Current A/c. (6)