Partnership Accounts chapter 1

Read the hypothetical text and answer the following questions.

Arun, Varun and Tarun were partners in a firm sharing profits equally. On 1st April, 2020, their capitals stood at ₹ 2, 00,000, ₹ 1, 50,000 and ₹ 1, 00,000 respectively. As per the provisions of Partnership Deed:

1) Arun was entitled to a salary of ₹ 2,500 p.m.

2) Partners were entitled to interest on capital @ 10% p.a.

The net profit for the year ended 31st March, 2021, ₹ 1,50,000 was distributed among the partners without providing for the above items

What is the amount of interest on capital of Varun?

• 20,000

• 15,000

• 10,000

• €30,000

What is the amount of distributable profit for the partners after providing salary and interest on capitals to the partners?

• € 20,000

• 15,000

• € 25,000

• 10,000

Arun's Capital A/c will be credited with Rs........... ..for giving the adjustment to above omissions.

Capital Account/Accounts of adjustments.

• Varun

• Tarun and Arun

• Arun and Varun

• Varun and Tarun

Read the hypothetical text and answer the following questions .

Sonu and Monu are partners sharing profits and losses in the ratio of 2:1. Their capital Accounts as at 1st April, 2015 were ₹ 10,00,000 and ₹ 8,00,000 respectively. The partners are allowed interest on capital @ 5% p.a. Drawings of the partners during the year ended 31st March, 2016 were ₹ 1,44,000 and ₹ 1,00,000 respectively. Monu is entitled to get a salary of ₹ 10,000 p.m.

Profit for the year before allowing interest on capital and salary was ₹ 16,00,000. 10% of the net profit is to be transferred to General Reserve.

What is the distributable amount of profit which is to be credited to Partners' Capital Accounts?

• 16,00,000

• 14,40,000

• 12,30,000

• 10,00,000

What is the closing capital of Sonu?

• 12,70,000

• 17,26,000

• 16,00,000

• 10,00,000

What is the share of Monu's profit to be credited to his Capital Account?

• 14,40,000

• 12,30,000

• 4,10,000

• 8,20,000

Mahesh, Dinesh and Suresh are equal partners with capitals of ₹ 5,00,000, ₹ 3,00,000 and ₹ 2,00,000 respectively. Mahesh withdrew ₹ 60,000 in the beginning of each quarter for the year ended 31st March, 2020. Dinesh withdrew ₹ 60,000 at the end of each quarter for the year ended 31st March,2020. Suresh withdrew ₹ 90,000 in the middle of each quarter for the year ended 31st March,2020. Interest on drawings is charged @ 10% p.a.

What is the total amount of drawings of all the partners?

• 9,00,000

• 8,40,000

• 8,60,000

• 9,20,000

Mahesh, Dinesh and Suresh are equal partners with capitals of ₹ 5,00,000, ₹ 3,00,000 and ₹ 2,00,000 respectively. Mahesh withdrew ₹ 60,000 in the beginning of each quarter for the year ended 31st March, 2020. Dinesh withdrew ₹ 60,000 at the end of each quarter for the year ended 31st March,2020. Suresh withdrew ₹ 90,000 in the middle of each quarter for the year ended 31st March,2020.

Interest on drawings is charged @ 10% p.a.What is the average period of Dinesh's drawings?

• 4.5 months

• 6 months

• 7.5 months

• 12 months

What is the total amount of interest on drawings of all the partners?

• 42,000

• € 40,000

• €45,000

• € 48,000