Accounting for Partnership – Basic Concepts — Class 12 Accountancy PYQs

Sara and Tara were partners in a firm. Their capitals as on 1st April, 2023 were ₹ 6,00,000 and ₹ 4,00,000 respectively. On 1st October, 2023, Tara withdrew ₹ 1,00,000 for personal use. According to the partnership deed, interest on capital was allowed @ 8% p.a.
The amount of interest allowed on Tara's capital for the year ended 31st March, 2024 was :
(A) ₹ 28,000
(B) ₹ 30,000
(C) ₹ 48,000
(D) ₹ 32,000

Ekta, Faguni and Garima were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 1. Faguni was guaranteed ₹ 25,000 as her share of profit in the firm. Any deficiency arising on that account was to be met by Ekta. The firm earned a profit of ₹ 90,000 for the year ended 31st March, 2024.
The profit credited to Faguni's capital account was :
(A) ₹ 30,000
(B) ₹ 40,000
(C) ₹ 25,000
(D) ₹ 10,000

Emily, Farida and Gauri were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. Farida was guaranteed ₹ 35,000 as her share in the profits in the firm. Any deficiency arising on that account was to be met by Emily. The firm earned a profit of ₹ 80,000 for the year ended 31st March 2024. The profit credited to Farida's capital account was :
(A) ₹ 30,000
(B) ₹ 35,000
(C) ₹ 25,000
(D) ₹ 5,000

Eliza, Fenn and Garry were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. Fenn was guaranteed ₹ 25,000 as his share in the profits. Any deficiency arising on that account was to be met by Eliza. The firm earned a profit of ₹ 80,000 for the year ended 31st March, 2024. The amount of profit credited to Fenn's capital account will be :
(A) ₹ 30,000
(B) ₹ 40,000
(C) ₹ 25,000
(D) ₹ 10,000

Assertion (A) : Each partner carrying on the business of the firm is the principal as well as the agent for all the other partners of the firm.
Reason (R) : There exists a relationship of mutual agency between all the partners.
Choose the correct option from the following :
(A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is correct, but Reason (R) is incorrect.
(D) Assertion (A) is incorrect, but Reason (R) is correct.

(a) Kartik, Inder and Lalit were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. With effect from 1st April, 2024, they decided to share profits and losses in the ratio of 2 : 3 : 4. For this purpose, the goodwill of the firm was valued at ₹ 1,80,000.

The necessary journal entry to show the effect of the above will be :

	Particulars	Dr. Amount (₹)	Cr. Amount (₹)
(A)	Lalit's Capital A/c Dr.	40,000
	To Kartik's Capital A/c		40,000
(B)	Kartik's Capital A/c Dr.	40,000
	To Lalit's Capital A/c		40,000
(C)	Lalit's Capital A/c Dr.	1,80,000
	To Kartik's Capital A/c		1,80,000
(D)	Kartik's Capital A/c Dr.	1,80,000
	To Lalit's Capital A/c		1,80,000

OR

(b) Nidhi, Pranav and Ishu were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. With effect from 1st April, 2024, they decided to share profits and losses in the ratio of 4 : 1 : 5. On that date, there was a debit balance of ₹ 4,00,000 in the Profit and Loss Account. The necessary journal entry to show the effect of the above will be :

	Particulars	Dr. Amount (₹)	Cr. Amount (₹)
(A)	Ishu's Capital A/c Dr.	1,60,000
	To Nidhi's Capital A/c		40,000
	To Pranav's Capital A/c		1,20,000
(B)	Profit & Loss A/c Dr.	4,00,000
	To Nidhi's Capital A/c		2,00,000
	To Pranav's Capital A/c		1,60,000
	To Ishu's Capital A/c		40,000
(C)	Nidhi's Capital A/c Dr.	2,00,000
	Pranav's Capital A/c Dr.	1,60,000
	Ishu's Capital A/c Dr.	40,000
	To Profit & Loss A/c		4,00,000
(D)	Nidhi's Capital A/c Dr.	40,000
	Pranav's Capital A/c Dr.	1,20,000
	To Ishu's Capital A/c		1,60,000

Assertion (A) : The maximum number of partners in a partnership firm is 50.
Reason (R) : By virtue of the Companies Act 2013, the Central Government is empowered to prescribe maximum number of partners in a firm. The Central Government has prescribed the maximum number of partners in a firm to be 50.
Choose the correct option from the following :
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Both Assertion (A) and Reason (R) are false.

Nandita and Prabha were partners in a firm. Nandita withdrew ₹ 3,00,000 during the year for personal use. The partnership deed provides for charging interest on drawings @ 10% p.a. Interest on Nandita's drawings for the year ended 31st March, 2024 will be :
(A) ₹ 9,000
(B) ₹ 30,000
(C) ₹ 18,000
(D) ₹ 15,000

(a) Misha, Sarita and Isha were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. With effect from 1st April 2024, they decided that they will share profits and losses equally. The gain or sacrifice by the partners due to change in profit sharing ratio will be :
(A) Misha's sacrifice 1/6, Isha's gain 1/6
(B) Misha's gain 1/6, Isha's sacrifice 1/6
(C) Misha's sacrifice 1/6, Sarita's gain 1/3, Isha's sacrifice 1/6
(D) Misha's sacrifice 1/3, Isha's gain 1/3
OR
(b) Sia, Tisha and Aryan were partners sharing profits and losses in the ratio of 4 : 7 : 1. The firm closes its books on 31st March every year. Tisha died on 1st July, 2024. Sia and Aryan will acquire Tisha's share in which of the following ratio ?
(A) 1 : 1
(B) 4 : 1
(C) 4 : 7
(D) 7 : 1

Suhas and Vilas were partners in a firm with capitals of ₹ 4,00,000 and ₹ 3,00,000 respectively. They admitted Prabhas as a new partner for 1/5th share in future profits. Prabhas brought ₹ 2,00,000 as his capital. Prabhas' share of goodwill will be :
(A) ₹ 1,00,000
(B) ₹ 10,00,000
(C) ₹ 9,00,000
(D) ₹ 20,000