Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for ₹ 2 crores. After a year, they sold it for ₹ 3 crores and shared the profits equally. Are they doing the business in partnership ? Give reason in support of your answer.
Class 12 · Accountancy · CBSE Board · 2018
Class 12 Accountancy 2018 Board Exam
25 questions from the 2018 Class 12 exam, combined from all 3 question paper sets (Set 1–3) with duplicates removed.
25questions
3exam sets
10chapters covered
1 / 3 / 4 / 6 / 8mark values
Questions from the 2018 exam first 10 of 25 — free
Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. Their partnership deed provided for the following :
(i) Interest on capital @ 5% p.a.
(ii) Interest on drawing @ 12% p.a.
(iii) Interest on partners’ loan @ 6% p.a.
(iv) Moli was allowed an annual salary of ₹ 4,000; Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of ₹ 1,50,000 after making all the adjustments as provided in the partnership agreement.
Their fixed capitals were Moli : ₹ 5,00,000; Bhola : ₹ 8,00,000 and Raj : ₹ 4,00,000. On 1st April, 2016 Bhola extended a loan of ₹ 1,00,000 to the firm. The net profit of the firm for the year ended 31st March, 2017 before interest on Bhola’s loan was ₹ 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31st March, 2017 and their Current Accounts assuming that Bhola withdrew ₹ 5,000 at the end of each month, Moli withdrew ₹ 10,000 at the end of each quarter and Raj withdrew ₹ 40,000 at the end of each half year.
Amit and Beena were partners in a firm sharing profits and losses in the ratio of 3 : 1. Chaman was admitted as a new partner for 1/6 th share in the profits. Chaman acquired 2/5 th of his share from Amit.
How much share did Chaman acquire from Beena ?
Asha and Aditi are partners in a firm sharing profits and losses in the ratio of 3 : 2. They admit Raghav as a partner for 1/4th share in the profits of the firm. Raghav brings ₹ 6,00,000 as his capital and his share of goodwill in cash. Goodwill of the firm is to be valued at two years' purchase of average profits of the last four years.
The profits of the firm during the last four years are given below :
| Year | Profit (₹) |
|---|---|
| 2013 – 14 | 3,50,000 |
| 2014 – 15 | 4,75,000 |
| 2015 – 16 | 6,70,000 |
| 2016 – 17 | 7,45,000 |
The following additional information is given :
(i) To cover management cost an annual charge of ₹ 56,250 should be made for the purpose of valuation of goodwill.
(ii) The closing stock for the year ended 31.3.2017 was overvalued by ₹ 15,000.
Pass necessary journal entries on Raghav's admission showing the working notes clearly.
Chander and Damini were partners in a firm sharing profits and losses equally. On 31st March, 2017 their Balance Sheet was as follows :
Balance Sheet of Chander and Damini as on 31.3.2017
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Sundry Creditors | 1,04,000 | Cash at Bank | 30,000 |
| Capitals: | Bills Receivable | 45,000 | |
| Chander 2,50,000 | Debtors | 75,000 | |
| Damini 2,16,000 | 4,66,000 | Furniture | 1,10,000 |
| Land and Building | 3,10,000 | ||
| Total | 5,70,000 | Total | 5,70,000 |
On 1.4.2017, they admitted Elina as a new partner for 1/3rd share in the profits on the following conditions :
(i) Elina will bring ₹ 3,00,000 as her capital and ₹ 50,000 as her share of goodwill premium, half of which will be withdrawn by Chander and Damini.
(ii) Debtors to the extent of ₹ 5,000 were unrecorded.
(iii) Furniture will be reduced by 10% and 5% provision for bad and doubtful debts will be created on bills receivables and debtors.
(iv) Value of land and building will be appreciated by 20%.
(v) There being a claim against the firm for damages, a liability to the extent of ₹ 8,000 will be created for the same.
Prepare Revaluation Account and Partners' Capital Accounts.
Neetu, Meetu and Teetu were partners in a firm. On 1st January, 2018, Meetu retired. On Meetu’s retirement the goodwill of the firm was valued at ₹ 4,20,000.
Pass necessary journal entry for the treatment of goodwill on Meetu’s retirement.
Jayant, Kartik and Leena were partners in a firm sharing profits and losses in the ratio of 5 : 2 : 3. Kartik died and Jayant and Leena decided to continue the business. Their gaining ratio was 2 : 3.
Calculate the new profit sharing ratio of Jayant and Leena.
Banwari, Girdhari and Murari are partners in a firm sharing profits and losses in the ratio of 4 : 5 : 6. On 31st March, 2014, Girdhari retired. On that date the capitals of Banwari, Girdhari and Murari before the necessary adjustments stood at ₹ 2,00,000, ₹ 1,00,000 and ₹ 50,000 respectively. On Girdhari’s retirement, goodwill of the firm was valued at ₹ 1,14,000. Revaluation of assets and re-assessment of liabilities resulted in a profit of ₹ 6,000. General Reserve stood in the books of the firm at ₹ 30,000.
The amount payable to Girdhari was transferred to his loan account. Banwari and Murari agreed to pay Girdhari two yearly instalments of ₹ 75,000 each including interest @ 10% p.a. on the outstanding balance during the first two years and the balance including interest in the third year. The firm closes its books on 31st March every year.
Prepare Girdhari’s loan account till it is finally paid showing the working notes clearly.
Pranav, Karan and Rahim were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2017 their Balance Sheet was as follows :
Balance Sheet of Pranav, Karan and Rahim as on 31.3.2017
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Creditors | 3,00,000 | Fixed Assets | 4,50,000 |
| General Reserve | 1,50,000 | Stock | 1,50,000 |
| Capitals: | Debtors | 2,00,000 | |
| Pranav 2,00,000 | Bank | 1,50,000 | |
| Karan 2,00,000 | |||
| Rahim 1,00,000 | 5,00,000 | ||
| Total | 9,50,000 | Total | 9,50,000 |
Karan died on 12.6.2017. According to the partnership deed, the legal representatives of the deceased partner were entitled to the following :
(i) Balance in his Capital Account.
(ii) Interest on Capital @ 12% p.a.
(iii) Share of goodwill. Goodwill of the firm on Karan's death was valued at ₹ 60,000.
(iv) Share in the profits of the firm till the date of his death, calculated on the basis of last year's profit. The profit of the firm for the year ended 31.3.2017 was ₹ 5,00,000.
Prepare Karan's Capital Account to be presented to his representatives.
Distinguish between ‘Dissolution of partnership’ and ‘Dissolution of partnership firm’ on the basis of settlement of assets and liabilities.
Chapters covered in the 2018 exam
Accounting for Partnership – Basic Concepts
2 questions in 2018
Reconstitution of Partnership – Admission of a Partner
3 questions in 2018
Reconstitution of Partnership – Retirement / Death of a Partner
4 questions in 2018
Dissolution of Partnership Firm
2 questions in 2018
Accounting for Share Capital
5 questions in 2018
Issue and Redemption of Debentures
3 questions in 2018
Financial Statements of a Company
1 question in 2018
Analysis of Financial Statements
1 question in 2018
Accounting Ratios
1 question in 2018
Cash Flow Statement
3 questions in 2018
About the 2018 Class 12 Accountancy paper
CBSE conducted the 2018 Class 12 Accountancy board exam in 3 question paper sets — students in different regions received different sets of the same exam. This page combines every set and removes repeated questions, giving you all 25 unique questions actually asked that year. The 2018 questions drew from 10 chapters of the syllabus.