Class 12 Accountancy 2016 Board Exam

A group of 40 people wants to form a partnership firm. They want your advice regarding the maximum number of persons that can be there in a partnership firm and the name of the Act under whose provisions it is given.

Tom and Harry were partners in a firm sharing profits in the ratio of 5 : 3. During the year ended 31.3.2015 Tom had withdrawn ₹ 40,000. Interest on his drawings amounted to ₹ 2,000.
Pass necessary journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating.

State any three circumstances other than (i) death of a partner, (ii) admission of a partner and (iii) retirement of a partner when need for valuation of goodwill of a firm may arise.

Vikas and Vivek were partners in a firm sharing profits in the ratio of 3 : 2.
On 1.4.2014 they admitted Vandana as a new partner for 1/8th share in the profits with a guaranteed profit of ₹ 1,50,000. The new profit sharing ratio between Vivek and Vikas will remain the same but they decided to bear any deficiency on account of guarantee to Vandana in the ratio 2 : 3. The profit of the firm for the year ended 31.3.2015 was ₹ 9,00,000.
Prepare Profit and Loss Appropriation Account of Vikas, Vivek and Vandana for the year ended 31.3.2015.

R, S and T were partners in a firm sharing profits in the ratio of 1 : 2 : 3. Their Balance Sheet as on 31.3.2015 was as follows :

Balance Sheet of R, S and T as on 31.3.2015

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	50,000	Land	50,000
Bills Payable	20,000	Building	50,000
General Reserve	30,000	Plant	1,00,000
Capitals :		Stock	40,000
R 1,00,000		Debtors	30,000
S 50,000		Bank	5,000
T 25,000	1,75,000
Total	2,75,000	Total	2,75,000

R, S and T decided to share the profits equally with effect from 1.4.2015. For this it was agreed that :

(a) Goodwill of the firm be valued at ₹ 1,50,000.

(b) Land be revalued at ₹ 80,000 and building be depreciated by 6%.

(c) Creditors of ₹ 6,000 were not likely to be claimed and hence be written off.

Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the reconstituted firm.

Nardeep, Hardeep and Gagandeep were partners in a firm sharing profits in 2 : 1 : 3 ratio. Their Balance sheet as on 31.3.2015 was as follows :

Balance Sheet of Nardeep, Hardeep and Gagandeep as on 31.3.2015

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	1,00,000	Land	1,00,000
Bills Payable	40,000	Building	1,00,000
General Reserve	60,000	Plant	2,00,000
Capital :		Stock	80,000
Nardeep 2,00,000		Debtors	60,000
Hardeep 1,00,000		Bank	10,000
Gagandeep 50,000	3,50,000
Total	5,50,000	Total	5,50,000

From 1.4.2015 Nardeep, Hardeep and Gagandeep decided to share the future profits equally. For this purpose it was decided that :

(a) Goodwill of the firm be valued at ₹ 3,00,000.

(b) Land be revalued at ₹ 1,60,000 and building be depreciated by 6%.

(c) Creditors of ₹ 12,000 were not likely to be claimed and hence be written off.

Prepare, Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm.

X, Y and Z were partners in a firm sharing profits in the ratio of 1 : 2 : 3. On 31.3.2015 their Balance Sheet was as follows :

Balance Sheet of X, Y and Z as on 31.3.2015

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	25,000	Land	25,000
Bills Payable	10,000	Building	25,000
General Reserve	15,000	Plant	50,000
Capitals :		Stock	20,000
X 50,000		Debtors	15,000
Y 25,000		Bank	2,500
Z 12,500	87,500
Total	1,37,500	Total	1,37,500

X, Y and Z decided to share the profits equally with effect from 1.4.2015. For this it was agreed that :

(a) Goodwill of the firm be valued at ₹ 75,000.

(b) Land be revalued at ₹ 40,000 and building be depreciated by 6%.

(c) Creditors of ₹ 3,000 were not likely to be claimed and hence be written off.

Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the reconstituted firm.

P, Q and R were partners in a firm sharing profits in the ratio of 3 : 2 : 1. They admitted S as a new partner for 1/8th share in the profits which he acquired 1/16th from P and 1/16th from Q.
Calculate new profit sharing ratio of P, Q, R and S.

L, M and N were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Their Balance Sheet on 31.3.2015 was as follows :

Balance Sheet of L, M and N as on 31.3.2015

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	1,68,000	Bank	34,000
General Reserve	42,000	Debtors	46,000
Capitals :		Stock	2,20,000
L 1,20,000		Investments	60,000
M 80,000		Furniture	20,000
N 40,000	2,40,000	Machinery	70,000
Total	4,50,000	Total	4,50,000

On the above date O was admitted as a new partner and it was decided that :

(i) The new profit sharing ratio between L, M, N and O will be 2 : 2 : 1 : 1.

(ii) Goodwill of the firm was valued at ₹ 1,80,000 and O brought his share of goodwill premium in cash.

(iii) The market value of investments was ₹ 36,000.

(iv) Machinery will be reduced to ₹ 58,000.

(v) A creditor of ₹ 6,000 was not likely to claim the amount and hence was to be written off.

(vi) O will bring proportionate capital so as to give him 1/6th share in the profits of the firm.

Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the New Firm.

Manav, Nath and Narayan were partners in a firm sharing profits in the ratio of 1 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2015 Nath died. On that date his capital account showed a debit balance of ₹ 5,000. There was a debit balance of ₹ 30,000 in the profit and loss account. The goodwill of the firm was valued at ₹ 3,80,000. Nath's share of profit in the year of his death was to be calculated on the basis of average profit of last 5 years, which was ₹ 90,000.
Pass necessary journal entries in the books of the firm on Nath's death.