Fundamentals

1. In the absence of Partnership Deed, how are the following matters resolved:
(a) Salaries of partners, (b) Interest on partners' capitals,
(c) Interest on partner's loan, (d) Division of profit,
(e) Interest on partners' drawings, (f) Interest on loan by partner(s), and
(g) Interest on Loan to partners?

2. Following differences have arisen among P, Q and R. State who is correct in each case:
(a) P used Rs 20,000 belonging to the firm and earned a profit of Rs 5,000. Q and R want the
amount to be given to the firm.
(b) Q used Rs 5,000 belonging to the firm and incurred a loss of Rs 1,000. He wants the firm
to bear the loss.
(c) P and Q want to purchase goods from A Ltd., R does not agree.
(d) Q and R want to admit C as partner, P does not agree.
(e) R had given loan of Rs 1,00,000 to the firm and demands interest @ 10% p.a. P and Q do
not want to pay the interest.

3. A, B and Care partners in a firm. They do not have a Partnership Deed. At the end of the first
year of the business, they faced the following problems:
(a) A wants that interest on capital should be allowed to the partners but B and C do not
agree.
(b) B wants that the partners should be allowed to draw salary but A and C do not agree.
(c) A and B want that C should pay interest on loan given to him by the firm but C does not
agree.
(d) A and B having contributed larger amounts of capital, desire that the profits should be
distributed in the ratio of their capital contribution but C does not agree.
State how you will settle these disputes if the partners approach you for the purpose.

4. Bose, Sarkar and Chatterjee are partners in a firm and do not have a Partnership Deed Bose
introduced further capital of Rs 2,00,000 on 1st October, 2019. Whereas Chatterjee took a
loan of Rs 50,000 from the firm on 1st October, 2019. Disputes have arisen among them on
the following issues:
(a) Bose demands interest @ 10% p.a. on Rs 2,00,000 being his extra capital.
(b) Sarkar desires that his son Deep should be admitted as partner and he will give him half
of his share. Bose and Chatterjee do not agree.
(c) Bose and Sarkar are of the view that Chatterjee should be charged interest on loan from
the firm at the lending rate of the banks, which is 12% p.a.
(d) Sarkar has withdrawn Rs 50,000 from the firm for his personal use. Bose and Chatterjee
are of the view that Sarkar should be charged interest @ 10% p.a.
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 You are required to give solution to each issue of dispute.

5. Harshad and Dhiman are in partnership since 1st April, 2019. No partnership agreement was
made. They contributed Rs 4,00,000 and Rs 1,00,000 respectively as capitals. In addition,
Harshad had given loan of Rs 1,00,000 to the firm on 1st October, 2019. Due to long illness,
Harshad could not participate in business activities from 1st August, 2019 to 30th September,
2019. Profit for the year ended 31st March, 2020 was Rs 1,80,000. Dispute has arisen
between Harshad and Dhiman.
Harshad Claims:
(i) He should be given interest @ 10% per annum on capital and loan;
(ii) Profit should be distributed in the ratio of capital;
Dhiman Claims:
(i) Profits 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 Harshad and Dhiman. Also prepare Profit and
Loss Appropriation Account

6. A and B are partners since 1st April, 2019, without a Partnership Deed and they introduced
capitals of Rs 35,000 and Rs 20,000 respectively. On 1st October, 2019, A gave loan of Rs
8,000 to the firm without any agreement as to interest. Profit and Loss Account for the year
ended 31st March, 2020 shows a profit of Rs 15,000 but the partners cannot agree on
payment of interest and on the basis of division of profit.
You are required to divide the profits between them giving reasons for your method.

7. A and B are partners in a firm sharing profits in the ratio of 3 : 2. They had given loan to the
firm of Rs 30,000 in their profit-sharing ratio on 1st October, 2019. The Partnership Deed is
silent on interest on loans from partners. Compute interest payable by the firm to the partners,
assuming the firm closes its books every year on 31st March.

8. X and Y are partners sharing profits and losses in the ratio of 2 : 3 with capitals of Rs
2,00,000 and Rs 3,00,000 respectively. On 1st October, 2019, X and Y gave loans of Rs
80,000 and Rs 40,000 respectively to the firm. Show distribution of profits/losses for the year
ended 31st March, 2020 in each of the following alternative cases:
Case 1. If the profits before interest for the year amounted to Rs 21,000.
Case 2. If the profits before interest for the year amounted to Rs 3,000.
Case 3. If the profits before interest for the year amounted to Rs 5,000.
Case 4. If the loss before interest for the year amounted to Rs 1,400.

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9. Bat and Ball are partners sharing the profits in the ratio of 2: 3 with capitals of Rs 1,20,000
and Rs 60,000 respectively. On 1st October, 2019, Bat and Ball gave loans of Rs 2,40,000
and Rs 1,20,000 respectively to the firm. Bat had allowed the firm to use his property for
business for a monthly rent of Rs 5,000. Loss for the year ended 31st March, 2020 before
rent and interest amounted to Rs 9,000. Show distribution of profit/loss.

10. Akhil and Bimal are partners sharing profits in the ratio of 3: 2. Akhil gave loan to the firm
of Rs 1,00,000 on 1st October, 2019. On the same date, the firm gave loan to Bimal of Rs
1,00,000. They do not have an agreement as to interest.
Akhil had also given his personal property for firm's godown at a monthly rent of Rs 5,000.
Firm earns profit of Rs 1,03,000 (before above adjustments) for the year ended 31st March,
2020. Show the distribution of profit for the year.

11. Ankit, Bhanu and Charu are partners in a firm sharing profits and losses equally with capital
of Rs 2,50,000 each. On 1st October, 2019, Ankit and Bhanu gave loans of Rs 2,50,000 each
to the firm whereas Charu took a loan of Rs 1,00,000 from the firm on the same date. It was
agreed among the partners that Charu will be charged Interest @ 6% p.a. Interest on loan
from partners was paid on 10th April, 2020. The firm closes its books on 31st March each
year.
Pass the Journal entries in the books of the firm for the year ended 31st March, 2020.

12. Nirmal and Pawan are partners sharing profits in the ratio of 3: 2. The firm had given loan to
Pawan of Rs 5,00,000 on 1st April, 2019. Interest was to be charged @ 10% p.a. The firm
took loan of Rs 2,00,000 from Nirmal on 1st October, 2019. Before giving effect to the
above, the firm incurred a loss of Rs 10,000 for the year ended 31st March, 2020.
Determine the amount to be transferred to Profit and Loss Appropriation Account.

13. A and B are partners. A's Capital is Rs 1,00,000 and B's Capital is Rs 60,000. Interest on
capital is payable @ 6% p.a. B is to get salary of Rs 3,000 per month. Net Profit for the year
is Rs 80,000.
Prepare Profit and Loss Appropriation Account.

14. X, Y and Z are partners in a firm sharing profits in the ratio of 2: 2: 1. Fixed capitals of the
partners were: X Rs 5,00,000; Y Rs 5,00,000 and Z Rs 2,50,000 respectively. The
Partnership Deed provides that interest on capital is to be allowed @ 10% p.a. Z is to be
allowed a salary of Rs 2,000 per month. Profit of the firm for the year ended 31st March,
2020 after debiting Z's salary was Rs 4,00,000.
Prepare Profit and Loss Appropriation Account.
15. X and Yare partners sharing profits in the ratio of 3:2 with capitals of Rs 8,00,000 and Rs
6,00,000 respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an annual
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 salary of Rs 60,000 which has not been withdrawn. Profit for the year ended 31st March,
2020 before interest on capital but after charging Y's salary was Rs 2,40,000.
A provision of 5% of the net profit is to be made in respect of commission to the Manager.
Prepare Profit and Loss Appropriation Account showing the allocation of profits.

16. Prem and Manoj are partners in a firm sharing profits in the ratio of 3 : 2. The Partnership
Deed provided that Prem was to be paid salary of Rs 2,500 per month and Manoj was to get a
commission of Rs 10,000 per year. Interest on capital was to be allowed @ 5% p.a. and
interest on drawings was to be charged @ 6% p.a. Interest on Prem's drawings was Rs 1,250
and on Manoj's drawings was Rs 425. Interest on Capitals of the partners were Rs 10,000 and
Rs 7,500 respectively. The firm's net profit for the year ended 31st March, 2020 was Rs
90,575.
Prepare Profit and Loss Appropriation Account of the firm.

17. Atul and Mithun are partners sharing profits in the ratio of 3 : 2.
Balances as on 1st April, 2019 were as follows:
Capital Accounts (Fixed): Atul— Rs 5,00,000 and Mithun— Rs 6,00,000.
Loan Accounts: Atul— Rs 3,00,000 (Cr.) and Mithun Rs 2,00,000 (Dr.)
It was agreed to allow and charge interest @ 8% p.a. Partnership Deed provided to allow
interest on capital @ 10% p.a. Interest on Drawings was charged Rs 5,000 each.
Profit before giving effect to above was Rs 2,28,000 for the year ended 31st March, 2020.
Prepare Profit and Loss Appropriation Account.

18. Reema and Seema are partners sharing profits equally. The Partnership Deed provides that
both Reema and Seema will get monthly salary of Rs 15,000 each, Interest on Capital will be
allowed @ 5% p.a. and Interest on Drawings will be charged @ 10% p.a. Their capitals were
Rs 5,00,000 each and drawings during the year were Rs 60,000 each.
The firm incurred net loss of Rs 1,00,000 during the year ended 31st March, 2020.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2020.

19. Bhanu and Partap are partners sharings profits equally. Their fixed capitals as on 1st April,
2019 are Rs 8,00,000 and Rs 10,00,000 respectively. Their drawings during the year were Rs
50,000 and Rs 1,00,000 respectively. Interest on Capital is a charge and is to be allowed @
10% p.a. and interest on drawings is to be charged @ 15% p.a. Net Profit for the year ended
31st March, 2020 was Rs 1,20,000.
Prepare Profit and Loss Appropriation Account.

20. Amar and Bimal entered into partnership on 1st April, 2019 contributing Rs 1,50,000 and Rs
2,50,000 respectively towards capitals. The Partnership Deed provided for interest on capitals
@ 10% p.a. It also provided that Capital Accounts shall be maintained following Fixed
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 Capital Accounts Method. The firm earned net profit of Rs 1,00,000 for the year ended 31st
March, 2020.
Pass the Journal entry for interest on capital.

21. Kamal and Kapil are partners having fixed capitals of Rs 5,00,000 each as on 31st March,
2019. Kamal introduced further captial of Rs 1,00,000 on Ist October, 2019 whereas Kapil
withdrew Rs 1,00,000 on 1st October, 2019 out of capital.
Interest on capital is to be allowed @ 10% p.a.
The firm earned net profit of Rs 6,00,000 for the year ended 31st March, 2020.
Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation
Account.

22. Simran and Reema are partners sharing profits in the ratio of 3 : 2. Their capitals as on 31st
March, 2019 were Rs 2,00,000 each whereas Current Accounts had balances of Rs 50,000
and Rs 25,000 respectively. Interest on capital is to be allowed @ 5% p.a. The firm earned
net profit of Rs 3,00,000 for the year ended 31st March, 2020.
Pass the Journal entries for interest on capital and distribution of profit. Also prepare Profit
and Loss Appropriation Account for the year.

23. Anita and Ankita are partners sharing profits equally. Their capitals, maintained following
Fluctuating Capital Accounts Method, as on 31st March, 2019 were Rs 5,00,000 and Rs
4,00,000 respectively. Partnership Deed provided to allow interest on capital @ 10% p.a. The
firm earned net profit of Rs 2,00,000 for the year ended 31st March, 2020.
Pass the Journal entry for interest on capital.

24. Ashish and Aakash are partners sharing profits in the ratio of 3 : 2. Their Capital Accounts
had credit balances of Rs 5,00,000 and Rs 6,00,000 respectively as on 31st March, 2020 after
debit of drawings during the year of Rs 1,50,000 and Rs 1,00,000 respectively. Net profit for
the year ended 31st March, 2020 was Rs 5,00,000.
Interest on capital is to be allowed @ 10% p.a.
Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation
Account.

25. Naresh and Sukesh are partners with capitals of Rs 3,00,000 each as on 31st March, 2020.
Naresh had withdrawn Rs 50,000 against capital on 1st October, 2019 and Rs 1,00,000
drawings against profit. Sukesh also had drawings of Rs 1,00,000.
Interest on capital is to be allowed @ 10% p.a.
Net profit for the year was Rs 2,00,000, which is yet to be distributed.
Pass the Journal entries for interest on capital and distribution of profit.

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26. On 1st April, 2013, Jay and Vijay entered into partnership for supplying laboratory
equipments to government schools situated in remote and backward areas. They contributed
capitals of Rs 80,000 and Rs 50,000 respectively and agreed to share the profits in the ratio
of 3 : 2. The Partnership Deed provided that interest on capital shall be allowed at 9% per
annum. During the year the firm earned a profit of Rs 7,800.
Showing your calculations clearly, prepare 'Profit and Loss Appropriation Account' of Jay
and Vijay for the year ended 31st March, 2014.

27. Following is the extract of the Balance Sheet of Neelkant and Mahadev as on 31st March,
2020:
BALANCE SHEET as at 31st March, 2020
Liabilities Rs Assets Rs
Neelkant’s Capital 10,00,000 Sundry Assets 30,00,000
Mahadev’s Capital 10,00,000
Neelkant’s Current A/c 1,00,000
Mahadeva Current A/c 1,00,000
Profit & Loss A/c (2019-20) 8,00,000
30,00,000 30,00,000

During the year, Mahadev's drawings were Rs 30,000. Profits during the year ended 31st
March, 2020 is Rs 10,00,000. Calculate interest on capital @ 5% p.a. for the year ending 31st
March, 2020.

28. From the following Balance Sheet of Long and Short, calculate interest on capital @ 8% p.a.
for the year ended 31st March, 2020:
BALANCE SHEET as at 31st March, 2020
Liabilities Rs Assets Rs
Long’s Capital 1,20,000 Fixed Assets 3,00,000
Short’s Capital 1,40,000 Other Assets 60,000
General Reserve 1,00,000

3,60,000 3,60,000

During the year, Long withdrew Rs 40,000 and Short withdrew Rs 50,000. Profit for the year
was Rs 1,50,000 out of which Rs 1,00,000 was transferred to General Reserve.

29. Moli and Bholi contribute Rs 20,000 and Rs 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 Rs 1,500. Show distribution of profits:
(i) When there is no agreement except for interest on capitals; and
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 (ii) When there is an agreement that the interest on capital as a charge.

30. Amit and Bramit started business on 1st April, 2019 with capitals of Rs 15,00,000 and Rs
9,00,000 respectively. On 1st October, 2019, they decided that their capitals should be Rs
12,00,000 each. The necessary adjustments in capitals were made by introducing or
withdrawing by cheque. Interest on capital is allowed @ 8% p.a. Compute interest on capital
for the year ended 31st March, 2020.

31. Amar, Bhanu, and Charu are partners in a firm. Amar and Bhanu are to get annual salary of
Rs 1,20,000 p.a. each as they manage the business. Net profit for the year is Rs 4,80,000.
Determine the share of profit to be credited to each partner.

32. A, B and Care partners sharing profits and losses in the ratio of 2 : 2 : 1. A is entitled to a
commission of 10% on the net profit. Net profit for the year is Rs 1,10,000. Determine the
amount of commission payable to A.

33. X, Y and Z are partners sharing profits and losses equally. As per Partnership Deed, Z is
entitled to a commission of 10% on the net profit after charging such commission. The net
profit before charging commission is Rs 2,20,000.
Determine the amount of commission payable to Z.

34. A, B, C and D are partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. It earned net
profit of Rs 1,80,000 for the year ended 31st March, 2020. As per the Partnership Deed, they
are to charge a commission @ 20% of the profit after charging such commission which they
will share as 2 : 3 : 2 : 3.
You are required to show appropriation of profits among the partners.

35. X and Y are partners in a firm. X is entitled to a salary of Rs 10,000 per month and
commission of 10% of the net profit after partners' salaries but before charging commission.
Y is entitled to a salary of Rs 25,000 p.a. and commission of 10% of the net profit after
charging all commission and partners' salaries Net profit before providing for partners'
salaries and commission for the year ended 31st March, 2019 was Rs 4,20,000. Show
distribution of profit.

36. Ram and Mohan, two partners, drew for their personal use Rs 1,20,000 and Rs 80,000.
Interest is chargeable @ 6% p.a. on the drawings. What is the amount of interest chargeable
from each partner?

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37. Brij and Mohan are partners in a firm. They withdrew Rs 48,000 and Rs 36,000 respectively
during the year evenly in the middle of every month. According to the Partnership Deed,
interest on drawings is to be charged @ 10% p.a.
Calculate interest on drawings of the partners using the appropriate formula.

38. Dev withdrew Rs 10,000 on 15th day of every month. Interest on drawings was to be
charged @ 12% per annum. Calculate interest on Dev's Drawings.

39. A and B are partners sharing profits equally. A drew regularly Rs 4,000 in the beginning of
every month for six months ended 30th September, 2019. Calculate interest on drawings @
5% p.a.for a period of six months.

40. One of the partners in a partnership firm has withdrawn Rs 9,000 at the end of each quarter,
throughout the year. Calculate interest on drawings at the rate of 6% per annum.
41. A and B are partners sharing profits equally. A drew regularly Rs 4,000 at the end of every
month for six months ended 30th September, 2019. Calculate interest on drawings @ 5% p.a.
for a period of six months.

42. Calculate interest on drawings of Ashok @ 10% p.a. for the year ended 31st March, 2020, in
each of the following alternative cases:
Case 1. If he withdrew Rs 7,500 in the beginning of each quarter.
Case 2. If he withdrew Rs 7,500 at the end of each quarter.
Case 3. If he withdrew Rs 7,500 during the middle of each quarter.

43. Kanika and Gautam are partners doing a dry cleaning business in Lucknow, sharing profits
in the ratio 2 : 1 with capitals Rs 5,00,000 and Rs 4,00,000 respectively. Kanika withdrew the
following amounts during the year to pay the hostel expenses of her son:
1st April Rs 10,000
1st June Rs 9,000
1st November Rs 14,000
1st December Rs 5,000
Gautam withdrew Rs 15,000 on the first day of April, July, October and January to pay rent
for the accommodation of his family. He also paid Rs 20,000 per month as rent for the office
of partnership which was in a nearby shopping complex.
Calculate interest on drawings @ 6% p.a.

44. C and D are partners in a firm; C has contributed Rs 1,00,000 and D Rs 60,000 as capitals.
Interest is payable @ 6% p.a. and D is entitled to salary of Rs 3,000 per month. In the year
ended 31st March, 2020, the profit was Rs 80,000 before interest and salary.
Prepare Profit and Loss Appropriation Account.
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45. Amit and Vijay started a partnership business on 1st April, 2019. Their capital contributions
were Rs 2,00,000 and Rs 1,50,000 respectively. The Partnership Deed provided as follows:
(a) Interest on capital be allowed @ 10% p.a.
(b) Amit to get a salary of Rs 2,000 per month and Vijay Rs 3,000 per month.
(c) Profits are to be shared in the ratio of 3 : 2.
Net Profit for the year ended 31st March, 2020 was Rs 2,16,000. Interest on drawings
amounted to Rs 2,200 for Amit and Rs 2,500 for Vijay.
Prepare Profit and Loss Appropriation Account.

46. Prepare Capital Accounts of the Partners Sohan and Mohan from the following information,
if their capitals are fluctuating:
Sohan (Rs) Mohan (Rs)
Capitals on 1st April, 2019 4,00,000 3,00,000
Drawings during the year ended 31st March, 2020 50,000 30,000
Interest on Capital 5% p.a. 5% p.a.
Interest on Drawings 1,250 750
Share of Profit for the year ended 31st March, 2020 60,000 50,000
Partner's Salary 36,000 -
Commission 5,000 3,000

47. A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2019, their
capitals were: A Rs 50,000 and B Rs 30,000. During the year ended 31st March, 2020, the
firm earned a net profit of Rs 50,000. The terms of partnership are:
(a) Interest on capital is to be allowed @ 6% p.a.
(b) A will get a commission @ 2% on turnover.
(c) B will get a salary of Rs 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 Rs 8,000 and B Rs 6,000. Turnover for the year was
Rs 3,00,000.
After considering the above facts, you are required to prepare Profit and Loss Appropriation
Account and Partners' Capital Accounts.

48. Sajal and Kajal are partners sharing profits and losses in the ratio of 2 : 1. On 1st April, 2019
their Capitals were: Sajal—Rs 5,00,000 and Kajal—Rs 4,00,000.
Prepare Profit and Loss Appropriation Account and the Partners' Capital Accounts at the end
of the year from the following information:
(a) Interest on Capital is to be allowed @ 5% p.a.

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 (b) Interest on the loan advanced by Kajal for the whole year, the amount of loan being Rs
3,00,000.
(c) Interest on partners' drawings @ 6% p.a. Drawings: Sajal Rs 1,00,000 and Kajal Rs
80,000.
(d) 10% of the divisible profit is to be transferred to General Reserve.
Profit, before giving effect to the above, for the year ended 31st March, 2020 is Rs 7,02,600.
Note: Net profit means net profit after debit of interest on loan by the partner.

49. Ali and Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur
30%. Their respective capitals as at 1st April, 2019 stand as Ali Rs 25,000 and Bahadur Rs
20,000. The partners are allowed interest on capitals @ 5% p.a. Drawings of the partners
during the year ended 31st March, 2020 were Rs 3,500 and Rs 2,500 respectively.
Profit for the year, before allowing interest on capital and annual salary of Bahadur @ Rs
3,000, was Rs 40,000, 10% of divisible profit is to be transferred to Reserve.
Prepare Partners' Current Accounts and Capital Accounts recording the above transactions.

50. A and B are partners sharing profits in the ratio of 3 : 2 with capitals of Rs 50,000 and Rs
30,000 respectively. Interest on capital is agreed @ 6% p.a. B is to be allowed an annual
salary of Rs 2,500. A provision of 5% of net profit is to be made in respect of Manager's
Commission and rent of Rs 24,000 is to be accounted being payable to A. Profit for the year
before manager's commission and rent to A was Rs 39,000.
Prepare Profit and Loss Appropriation account and the Partners' Capital Accounts.

51. A, B and C were partners in a firm having capitals of Rs 50,000; Rs 50,000 and Rs 1,00,000
respectively. Their Current Account balances were A: Rs 10,000; B: Rs 5,000 and C: Rs
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 Rs 12,000
p.a. The profits were to be divided as:
(a) The first Rs 20,000 in proportion to their capitals.
(b) Next Rs 30,000 in the ratio of 5 : 3 : 2.
(c) Remaining profits to be shared equally.
The firm earned net profit of Rs 1,72,000 before charging any of the above items.
Prepare Profit and Loss Appropriation Account and pass necessary Journal entry for the
appropriation of profits.

52. A, B and Care partners sharing profits and losses in the ratio of A 1/2, B 3/10, C 1/5 after
providing for interest @ 5% on their respective capitals, viz., A Rs 50,000; B Rs 30,000 and
C Rs 20,000 and allowing B and C salary of Rs 5,000 each per annum. During the year ended
31st March, 2020, A has drawn Rs 10,000 and B and C in addition to their salaries have
drawn Rs 2,500 and Rs 1,000 respectively. Profit and Loss Account for the year ended 31st
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 March, 2020 showed net profit of Rs 45,000. On 1st April, 2019, the balances in the Current
Accounts of the partners were A (Cr.) Rs 4,500; B (Cr.) Rs 1,500 and C (Cr.) Rs 1,000.
Interest is not charged on Drawings and allowed on Current Account balances. Show
Partners' Capital and Current Accounts as at 31st March, 2020 after division of profits in
accordance with the partnership agreement.

53. Amit, Binita and Charu are three partners. On 1st April, 2019, their Capitals stood as: Amit
Rs 1,00,000, Binita Rs 2,00,000 and Charu Rs 3,00,000. It was decided that:
(a) they would receive interest on Capitals @ 5% p.a.,
(b) Amit would get a salary of Rs 10,000 per month,
(c) Binita would receive commission @ 5% of net profit after deduction of commission, and
(d) 10% of the net profit would be transferred to the General Reserve.
Before the above items were taken into account, profit for the year ended 31st March, 2020
was Rs 5,00,000.
Prepare Profit and Loss Appropriation Account and the Capital Accounts of the Partners.

54. Anshul and Asha are partners sharing profits and losses in the ratio of 3 : 2. Anshul being a
non-working partner contributed Rs 8,00,000 as her capital. Asha being a working partner
did not contribute capital. The Partnership Deed provides for interest on capital @ 5% and
salary to every working partner @ Rs 2,000 per month. Net profit (before providing for
interest on capital and partner's salary) for the year ended 31st March, 2020 was Rs 32,000.
Show distribution of profits.

55. Kabir, Zoravar and Parul are partners sharing profits in the ratio of 5 : 3 : 2. Their capitals as
on 1st April, 2019 were: Kabir — Rs 5,20,000, Zoravar—Rs 3,20,000 and Parul Rs 2,00,000.
The Partnership Deed provided as follows:
(i) Kabir and Zoravar each will get salary of Rs 24,000 p.a.
(ii) Parul will get commission of 2% of Sales.
(iii) Interest on capital is to be allowed @ 5% p.a.
(iv) Interest on Drawings is to be charged @ 5% p.a.
(v) 10% of Divisible Profit is to be transferred to General Reserve.
Sales for the year ended 31st March, 2020 were Rs 50,00,000. Drawings by each of the
partners during the year was Rs 60,000. Net Profit for the year was Rs 1,55,500.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2020.

56. X and Y entered into partnership on 1st April, 2017. Their capitals as on 1st April, 2019
were Rs 2,00,000 and Rs 1,50,000 respectively. On 1st October, 2019, X gave Rs 50,000 as
loan to the firm. As per the provisions of the Partnership Deed:
(i) 20% of Profits before charging Interest on Drawings but after making appropriations was
to be transferred to General Reserve.
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 (ii) Interest on capital is to be allowed @ 12% p.a. and Interest on Drawings is to be charged
@ 10% p.a.
(iii) X to get monthly salary of Rs 5,000 and Y to get salary of Rs 22,500 per quarter.
(iv) X is entitled to a commission of 5% on sales. Sales for the year were Rs 3,50,000.
(v) Profit to be shared in the ratio of their capitals up to Rs 1,75,000 and balance equally.
Profit for the year ended 31st March, 2020, before allowing or charging interest was Rs
4,61,000. The drawings of X and Y were Rs 1,00,000 and Rs 1,25,000 respectively.
Pass the necessary Journal entries relating to appropriation of profit. Prepare Profit and Loss
Appropriation Account and the Partners' Capital Accounts.

57. Reya, Mona and Nisha shared profits in the ratio of 3 : 2 : 1. Profits for the last three years
were Rs 1,40,000; Rs 84,000 and Rs 1,06,000 respectively. These profits were by mistake
distributed equally. The error is now to be corrected.
Give the necessary rectification Journal entry.

58. P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were
Rs 2,00,000 and Rs 3,00,000 respectively. The Partnership Deed provided for interest on
capital @ 12% per annum. For the year ended 31st March, 2016, profits of the firm were
distributed without providing interest on capital.
Pass necessary adjustment entry to rectify the error.

59. Azad and Benny are equal partners. Their capitals are Rs 40,000 and Rs 80,000 respectively.
After the accounts for the year had been prepared, it was noticed that interest @ 5% p.a. as
provided in the Partnership Deed was not credited to their Capital Accounts before
distribution of profits. It is decided to pass an adjustment entry in the beginning of the next
year. Record the necessary Journal entry.

60. Ram, Mohan and Sohan sharing profits and losses equally have capitals of Rs 1,20,000, Rs
90,000 and Rs 60,000 respectively. For the year ended 31st March, 2020, interest was
credited to them @ 6% p.a. instead of 5% p.a. Give adjustment Journal entry.

61. Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2 :
1 : 2. Their capitals were fixed at Rs 3,00,000, Rs 1,00,000, Rs 2,00,000. For the year ended
31st March, 2020, interest on capital was credited to them @ 9% instead of 10% p.a. The
profit for the year before charging interest was Rs 2,50,000. Show your working notes and
pass necessary adjustment entry.

62. Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st
March, 2020 after closing the books of account, their Capital Accounts stood at Rs 4,80,000
and Rs 6,00,000 respectively. On 1st May, 2019, Simrat introduced an additional capital of
12
 Rs 1,20,000 and Bir withdrew Rs 60,000 from his capital. On 1st October, 2019, Simrat
withdrew Rs 2,40,000 from her capital and Bir introduced Rs 3,00,000. Interest on capital is
allowed at 6% p.a. Subsequently, it was noticed that interest on capital @ 6% p.a. had been
omitted. Profit for the year ended 31st March, 2020 amounted to Rs 2,40,000 and the
partners' drawings had been: Simrat— Rs 1,20,000 and Bir—Rs 60,000.
Compute the interest on capital if the capitals are (a) fixed, and (b) fluctuating.

63. Profit earned by a partnership firm for the year ended 31st March, 2020 were distributed
equally between the partners—Pankaj and Anu—without charging interest on Drawings.
Interest due on Drawings was Pankaj Rs 3,000 and Anu Rs 1,000.
Pass necessary adjustment entry.

64. Mita and Usha are partners in a firm sharing profits in the ratio of 2 : 3. Their Capital
Accounts as on 1st April, 2015 showed balances of Rs 1,40,000 and Rs 1,20,000
respectively. The drawings of Mita and Usha during the year 2015-16 were Rs 32,000 and Rs
24,000 respectively. Both the amounts were withdrawn on 1st January 2016. It was
subsequently found that the following items had been omitted while preparing the final
accounts for the year ended 31st March, 2016:
(a) Interest on Capital @ 6% p.a.
(b) Interest on Drawings @ 6% p.a.
(c) Mita was entitled to a commission of Rs 8,000 for the whole year.
Showing your working clearly, pass a rectifying entry in the books of the firm.

65. A, B and C were partners. Their fixed capitals were Rs 60,000, Rs 40,000 and Rs 20,000
respectively. Their profit- sharing ratio was 2 : 2 : 1. According to the Partnership Deed, they
were entitled to interest on capital @ 5% p.a. In addition, B was also entitled to draw a salary
of Rs 1,500 per month. C was entitled to a commission of 5% on the profits after charging
the interest on capital, but before charging the salary payable to B. The net profits for the
year, Rs 80,000, were distributed in the ratio of their capitals without providing for any of the
above adjustments. Showing your workings clearly, pass the necessary adjustment entry.

66. On 31st March, 2020, after the closing of the accounts, Capital Accounts of P, Q and R
stood in the books of the firm at Rs 40,000; Rs 30,000 and Rs 20,000 respectively.
Subsequently, it was noticed that interest on capital @ 5% had been omitted. Profit for the
year ended 31st March, 2020 was Rs 60,000 and the partners' drawings had been P Rs
10,000, Q Rs 7,500 and R Rs 4,500. Profit-sharing ratio of P, Q and R is 3 : 2 : 1.
Pass necessary adjustment entry.

67. Mohan, Vijay and Anil are partners, the balances of their Capital Accounts being Rs 30,000,
Rs 25,000 and Rs 20,000 respectively. In arriving at these amounts profit for the year ended
13
 31st March, 2020, Rs 24,000 had been credited to partners in their profit-sharing ratio. Their
drawings were Rs 5,000 (Mohan), Rs 4,000 (Vijay) and Rs 3,000 (Anil) during the year.
Subsequently, following omissions were noticed and it was decided to rectify the errors:
(a) Interest on capital @ 10% p.a.
(b) Interest on drawings: Mohan Rs 250, Vijay Rs 200 and Anil Rs 150.
Make necessary corrections through a Journal entry and show your workings clearly.

68. Piya and Bina are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following
was the Balance Sheet of the firm as on 31st March, 2016:

Liabilities Rs Assets Rs
Piya’s Capital 80,000 Sundry Assets 1,20,000
Bina’s Capital 40,000

1,20,000 1,20,000

The profits Rs 30,000 for the year ended 31st March, 2016 were divided between the partners
without allowing interest on capital @ 12% p.a. and salary to Piya @ Rs 1,000 per month.
During the year Piya withdrew Rs 8,000 and Bina withdrew Rs 4,000. Showing your working
notes clearly, pass the necessary rectifying entry.

69. Naveen, Qadir and Rajesh were partners doing an electronic goods business in Uttarakhand.
After the accounts of partnership were drawn up and closed, it was discovered that interest on
capital has been allowed to partners @ 6% p.a. for the years ending 31st March, 2017 and
2018, although there is no provision for interest on capital in the Partnership Deed. On the
other hand Naveen and Qadir were entitled to a salary of Rs 3,500 and Rs 4,000 per quarter
respectively, which has not been taken into consideration. Their fixed capitats were Rs
4,00,000, Rs 3,60,000 and Rs 2,40,000 respectively. During the last two years they had
shared the profits and losses as follows:
Year Ended Ratio
31st March, 2017 3:2:1
31st March, 2018 5:3:2
Pass necessary adjusting entry for the above adjustments in the books of the firm on 1st
April, 2018. Show your workings clearly.

70. Mannu and Shristhi are partners in a firm sharing profits in the ratio of 3 : 2. Following
information is of the firm as on 31st March, 2020:

Liabilities Rs Assets Rs
Mannu’s Capital 3,00,000 Drawings :
14
 Shristhi’s Capital 1,00,000 Mannu 40,000
Shristhi 20,000
Other Assets 3,40,000

4,00,000 4,00,000

Profit for the year ended 31st March, 2020 was Rs 50,000 which was divided in the agreed
ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently
omitted. Adjust interest on drawings on an average basis for 6 months. Give the adjustment
entry.

71. Mudit, Sudhir and Uday are partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their
fixed capital balances are Rs 4,00,000, Rs 1,60,000 and Rs 1,20,000 respectively. Net profit
for the year ended 31st March, 2018 distributed amongst the partners was Rs 1,00,000,
without taking into account the following adjustments:
(a) Interest on capitals @ 2.5% p.a.
(b) Salary to Mudit Rs 18,000 p.a. and commission to Uday Rs 12,000.
(c) Mudit was allowed a commission of 6% of divisible profit after charging such
commission.
Pass a rectifying Journal entry in the books of the firm. Show workings clearly.

72. A, B and Care partners in a firm. Net profit of the firm for the year ended 31st March, 2020
is Rs 30,000, which has been duly distributed among the partners in their agreed ratio of 3 : 1
: 1. It is noticed on 10th April, 2020 that the under mentioned transactions were not passed
through the books of account of the firm for the year ended 31st March, 2020.
(a) Interest on Capital @ 6% per annum, the capital of A, B and C being Rs 50,000; Rs
40,000 and Rs 30,000 respectively.
(b) Interest on drawings: A Rs 350; B Rs 250; C Rs 150.
(c) Partners' Salaries: A Rs 5,000; B Rs 7,500.
(d) Commission due to A (for some special transaction) Rs 3,000.
You are required to pass a Journal entry, which will not affect Profit and Loss Account of the
firm and rectify the position of partners inter se.

73. On 31st March, 2018 the balance in the Capital Accounts of Abhir, Bobby and Vineet, after
making adjustments for profits and drawings were Rs 8,00,000, Rs 6,00,000 and Rs 4,00,000
respectively.
Subsequently, it was discovered that interest on capital and interest on drawings had been
omitted. The partners were entitled to interest on capital @ 10% p.a. and were to be charged
interest on drawings @ 6% p.a. The drawings during the year were: Abhir— Rs 20,000
drawn at the end of each month, Bobby Rs 50,000 drawn at the beginning of every half year
15
 and Vineet Rs 1,00,000 withdrawn on 31st October, 2017. The net profit for the year ended
31st March, 2018 was Rs 1,50,000. The profit-sharing ratio was 2 : 2 : 1.
Pass necessary adjusting entry for the above adjustments in the books of the firm. Also, show
your workings clearly.

74. On 31st March, 2014, the balances in the Capital Accounts of Saroj, Mahinder and Umar
after making adjustments for profits and drawings, etc., were Rs 80,000, Rs 60,000 and Rs
40,000 respectively. Subsequently, it was discovered that the interest on capital and drawings
has been omitted.
(a) The profit for the year ended 31st March, 2014 was Rs 80,000.
(b) During the year Saroj and Mahinder each withdrew a sum of Rs 24,000 in equal
instalments in the end of each month and Umar withdrew Rs 36,000.
(c) The interest on drawings was to be charged @ 5% p.a. and interest on capital was to be
allowed @ 10% p.a.
(d) The profit-sharing ratio among partners was 4 : 3 : 1.
Showing your workings clearly, pass the necessary rectifying entry.

75. Capitals of A, B and C as on 31st March, 2019 amounted to Rs 90,000, Rs 3,30,000 and Rs
6,60,000 respectively. Profit of Rs 1,80,000 for the year ended 31st March, 2019 was
distributed in the ratio of 4 : 1 : 1 after allowing Interest on Capital @ 10% p.a. During the
year, each partner withdrew Rs 3,60,000. The Partnership Deed was silent as to profit-sharing
ratio but provided for interest on capital @ 12%.
Pass the necessary adjustment entry showing the working clearly.

76. Capital Accounts of A and B stood at Rs 4,00,000 and Rs 3,00,000 respectively after
necessary adjustments in respect of the drawings and the net profit for the year ended 31st
March, 2019. It was subsequently noticed that 5% p.a. interest on capital and also drawings
were not taken into account in arriving at the distributable profit. The drawings of the
partners had been: A Rs 12,000 drawn at the end of each quarter and B Rs 18,000 drawn at
the end of each half year.
The profit for the year as adjusted amounted to Rs 2,00,000. The partners share profits in the
ratio of 3 : 2.
You are required to pass Journal entries and show adjusted Capital Accounts of the partners.

77. The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2 : 2 : 1, have
existed for some years. Ali wants that he should get equal share in the profits with Harry and
Porter and he further wishes that the change in the profit-sharing ratio should come into
effect retrospectively for the three years. Harry and Porter have agreed to it. Profits for the
last three years ended 31st March, were:
Year ended 31st March, 2018 2019 2020
16
 Profit (Rs) 2,20,000 2,40,000 2,90,000
Show adjustment of profits by means of an adjustment Journal entry.

78. A and B are partners sharing profits in the ratio of 3 : 2. C was admitted for 1/6th share of
profit with a minimum guaranteed amount of Rs 10,000. At the close of the first financial
year the firm earned a profit of Rs 54,000. Find out the share of profit which A, B and C will
get.

79. A, B and C were in partnership sharing profits and losses in the ratio of 4 : 2 : 1. It was
provided that C's share in profit for a year would not be less than Rs 75,000. Profit for the
year ended 31st March, 2020 amounted to Rs 3,15,000. You are required to show the
appropriation among the partners. The Profit and Loss Appropriation Account is not
required.

80. X, Y and Z entered into partnership on 1st October, 2019 to share profits in the ratio of 4 :
3 : 3. X, personally guaranteed that Z's share of profit after charging interest on capital @
10% p.a. would not be less than Rs 80,000 in a year. Capital contributions were: X Rs
3,00,000, Y— Rs 2,00,000 and Z– Rs 1,50,000.
Profit for the year ended 31st March, 2020 was Rs 1,60,000. Prepare Profit and Loss
Appropriation Account.

81. A, B and C are partners in a firm. Their profit-sharing ratio is 2 : 2 : 1. C is guaranteed a

82. A, B and Care partners sharing profits in the ratio of 5 : 4 : 1. C is given a guarantee that his
minimum share of profit in any given year would be at least Rs 5,000. Deficiency, if any,
would be borne by A and B equally. Profit for the year ended 31st March, 2020 was Rs
40,000.
Pass necessary Journal entries in the books of the firm.

83. Vikas and Vivek were partners in a firm sharing profits in the ratio of 3 : 2. On 1st April,
2019, they admitted Vandana as a new partner for 1/8th share in the profits with a guaranteed
profit of Rs 1,50,000. New profit-sharing ratio between Vikas and Vivek will remain same
but they decided to bear any deficiency on account of guarantee to Vandana in the ratio 3 : 2.
Profit of the firm for the year ended 31st March, 2020 was Rs 9,00,000.
Prepare Profit and Loss Appropriation Account of Vikas, Vivek and Vandana for the year
ended 31st March, 2020.
17
84. A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 :1. They earned profit of
Rs 30,000 during the year ended 31st March, 2020. Distribute profit among A, B and C if:
(a). C's share of profit is guaranteed to be Rs 6,000 minimum.
(b) Minimum profit payable to C amounting to Rs 6,000 is guaranteed by A.
(c) Guaranteed minimum profit of Rs 6,000 payable to C is guaranteed by B.
(d) Any deficiency after making payment of guaranteed Rs 6,000 will be borne by A and B in
the ratio of 3 : 1.

85. A and B are in partnership sharing profits and losses in the ratio of 3 : 2. They admit C, their
Manager, as a partner with effect from 1st April, 2020, for 1/4th share of profits.
C, while a Manager, was in receipt of a salary of Rs 27,000 p.a. and a commission of 10% of
net profit after charging such salary and commission.
In terms of the Partnership Deed, any excess amount, which C will be entitled to receive as a
partner over the amount which would have been due to him if he continued to be the
Manager, will be borne by A. Profit for the year ended 31st March, 2020 amounted to Rs
2,25,000.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2020.

86. P, Q and R entered into partnership on 1st April, 2015 to share profits and losses in the ratio
of 12 : 8 : 5. It was provided that in no case R's share in profit be less than Rs 30,000 p.a. The
profits and losses for the year ended 31st March, were: 2018 Profit Rs 1,20,000; 2019 Profit*
Rs 1,80,000; 2020 Loss Rs 1,20,000.
Pass the necessary Journal entries in the books of the firm.

87. Asgar, Chaman and Dholu are partners in a firm. Their Capital Accounts stood at Rs
6,00,000; Rs 5,00,000 and Rs 4,00,000 respectively on 1st April, 2019. They shared Profits
and Losses in the proportion of 4 : 2 : 3. Partners are entitled to interest on capital @ 8% per
annum and salary to Chaman and Dholu @ Rs 7,000 per month and 10,000 per quarter
respectively as per the provision of the Partnership Deed.
Dholu's share of profit (excluding interest on capital but including salary) is guaranteed at a
minimum of Rs 1,10,000 p.a. Any deficiency arising on that account shall be met by Asgar.
The profit for the year ended 31st March, 2020 amounted to Rs 4,24,000.
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2020.

88. Ankur, Bhavna and Disha are partners in a firm. On 1st April, 2019, the balances in their
Capital Accounts stood at Rs 14,00,000, Rs 6,00,000 and Rs 4,00,000 respectively. They
shared profits in the proportion of 7 : 3 : 2 respectively. Partners are entitled to interest on
capital @ 6% per annum and salary to Bhavna @ Rs 50,000 p.a. and a commission of Rs
3,000 per month to Disha as per the provisions of the Partnership Deed.
18
 Bhavna's share of profit (excluding interest on capital) is guaranteed at not less than Rs
1,70,000 p.a. Disha's share of profit (including interest on capital but excluding commission)
is guaranteed at not less than Rs 1,50,000 p.a. Any deficiency arising on that account shall be
met by Ankur. The profit of the firm for the year ended 31st March, 2020 amounted to Rs
9,50,000.
Prepare 'Profit and Loss Appropriation Account for the year ended 31st March, 2020.

89. Ajay, Binay and Chetan were partners sharing profits in the ratio of 3 : 3 : 2. The Partnership
Deed provided for the following:
(i) Salary of Rs 2,000 per quarter to Ajay and Binay.
(ii) Chetan was entitled to a commission of Rs 8,000.
(iii) Binay was guaranteed a profit of Rs 50,000 p.a.
The profit of the firm for the year ended 31st March, 2015 was Rs 1,50,000 which was
distributed among Ajay, Binay and Chetan in the ratio of 2 : 2 : 1, without taking into
consideration the provisions of Partnership Deed.
Pass necessary rectifying entry for the above adjustments in the books of the firm. Show your
workings clearly.

90. The partners of a firm, Alia, Bhanu and Chand distributed the profits for the year ended 31st
March, 2017, Rs 80,000 in the ratio of 3 : 3 : 2 without providing for the following
adjustments:
(a) Alia and Chand were entitled to a salary of Rs 1,500 each per month.
(b) Bhanu was entitled for a commission of Rs 4,000.
(c) Bhanu and Chand had guaranteed a minimum profit of Rs 35,000 p.a. to Alia any
deficiency to borne equally by Bhanu and Chand.
Pass the necessary Journal entry for the above adjustments in the books of the firm. Show
workings clearly.
91. Three Chartered Accountants A, B and C form a partnership, profits being shared in the ratio
of 3 : 2 : 1 subject to the following:
(a) C's share of profit guaranteed to be not less than Rs 15,000 p.a.
(b) B gives a guarantee to the effect that gross fee earned by him for the firm shall be equal to
his average gross fee of the preceeding five years when he was carrying on profession alone,
which on an average works out at Rs 25,000.
The profit for the first year of the partnership are Rs 75,000. The gross fee earned by B for
the firm is Rs 16,000. You are required to show Profit and Loss Appropriation Account after
giving effect to the above.

19
 Answers
1. (a) Not allowed; (b) Not allowed;
(c) 6% p.a.; (d) Equal;
(e) Not charged; (f) Allowed @ 6% p.a.;
(g) Not charged.
2. (a) P must pay— Rs 25,000; (b) Q must pay—Rs 5,000;
(c) Goods may be bought from A Ltd.; (d) C cannot be admitted;
(e) R will get interest @ 6% p.a.
3. (a) A's claim is not accepted, (b) B's claim is not accepted,
(c) A and B's claim is not accepted; C will not pay interest in the absence of agreement, and
(d) Profits or losses should be distributed among the partners equally. The claim made by A
and B is not accepted.
4. In the absence of Partnership Deed, the provisions of Indian Partnership Act, 1932 will apply:
(a) No interest will be paid on extra capital introduced.
(b) Deep cannot be admitted as Bose and Chatterjee don't agree.
(c) No interest will be charged from Chatterjee as rate of interest was not agreed.
(d) Interest on drawings will not be charged from Sarkar.
5. Harshad and Dhiman each gets Rs 88,500 as profit and Harshad gets Rs 3,000 as Interest on
Loan.
6. A and B each gets Rs 7,380 as profit and A gets Rs 240 as interest on A's loan.
7. Interest Payable to A— Rs 30,000 3/5 6/100 X 6/12 = Rs 540;
Interest Payable to B Rs 30,000 2/5 x 6/100 X 6/12 = Rs 360.
8. Interest on X's Loan Rs 2,400; Interest on Y's Loan Rs 1,200;
Case 1. Profit: X Rs 6,960; Y Rs 10,440;
Case 2. Loss: X Rs 240; Y Rs 360;
Case 3. Profit: X Rs 560; Y Rs 840;
Case 4. Loss: X Rs 2,000; Y Rs 3,000.
9. Share of Loss: Bat Rs 31,920; Ball Rs 47,880.
10. Rs 40,000 [(Rs 1,03,000 – Rs 3,000) (interest on Loan by Akhil) — Rs 60,000 (rent)] will be
distributed in the ratio of 3 : 2. Akhil— Rs 24,000; Bimal — Rs 16,000.
11. Interest credited to Loan Accounts of Ankit and Bhanu— Rs 7,500 each; Interest debited to
Charu's Capital Account— Rs 3,000.
12. Amount of Profit transferred to Profit and Loss Appropriation A/c Rs 34,000.
13. Share of Profit: A– Rs 17,200; B— Rs 17,200.
14. Divisible Profit Rs 2,75,000.
15. Provision for Manager's Commission— Rs 15,000 (i.e., 5% of Rs 3,00,000), Share of Profit:
X— Rs 93,000; Y Rs 62,000.
16. Divisible Profit Rs 34,750; Share of Profit: Prem Rs 20,850; Manoj— Rs 13,900.
17. Share of Profit: Atul— Rs 72,000; and Mithun— Rs 48,000.

20
18. Loss— Rs 94,000; Reema's Share— Rs 47,000; Seema's Share— Rs 47,000.
19. Loss— Rs 48,750; Dr. Bhanu's Current A/c and Partap's Current Account by Rs 24,375
each.
20. Dr. Profit and Loss Appropriation A/c by Rs 40,000; Cr. Amar's Current A/c by Rs 15,000
and Bimal's Current A/c by Rs 25,000.
21. Dr. Profit and Loss Appropriation A/c by Rs 1,00,000; Cr. Kamal's Current A/c by Rs
55,000 and Kapil's Current A/c by Rs 45,000; Share of Profit: Kamal—Rs 2,50,000 and
Kapil— Rs 2,50,000.
22. (i) Dr. Profit and Loss Appropriation A/c by Rs 20,000; Cr. Simran's Current A/c by Rs
10,000 and Reema's Current A/c by Rs 10,000;
(ii) Dr. Profit and Loss Appropriation A/c by Rs 2,80,000; Cr. Simran's Current A/c by Rs
1,68,000 and Reema's Current A/c by Rs 1,12,000.
23. Dr. Profit and Loss Appropriation A/c by Rs 90,000; Cr. Anita's Capital A/c by Rs 50,000
and Ankita's Capital A/c by Rs 40,000.
24. (i) Dr. Profit and Loss Appropriation A/c by Rs 1,35,000; Cr. Ashish's Capital A/c by Rs
65,000 and Aakash's Capital A/c by Rs 70,000;
(ii) Share of Profit: Ashish— Rs 2,19,000 and Aakash—Rs 1,46,000.
25. For Interest on Capital:
Dr. Profit and Loss Appropriation A/c by Rs 82,500; Cr. Naresh's Capital A/c by Rs 42,500
and Sukesh's Capital A/c by Rs 40,000;
For Profit distribution:
Dr. Profit and Loss Appropriation A/c by Rs 1,17,500; Cr. Naresh's Capital A/c by Rs 58,750
and Sukesh's Capital A/c by Rs 58,750.
26. Interest on Capital: Jay— Rs 4,800; Vijay— Rs 3,000.
27. Interest on Capital: Neelkant— Rs 50,000; Mahadev Rs 50,000.
28. Interest on Long's Capital— Rs 10,800; Interest on Short's Capital— Rs 13,200.
29. (i) Interest on Capital: Moli Rs 1,000; Bholi Rs 500;
(ii) Loss: Moli— Rs 120; Bholi Rs 180.
30. Interest on Capital: Amit— Rs 1,08,000; Bramit—Rs 84,000.
31. Share of Profit Rs 80,000 each.
32. Commission Payable to A Rs 11,000.
33. Commission Payable to Z Rs 20,000.
34. Commission payable to the partners = 20/120 x Rs 1,80,000 = Rs 30,000 which will be
shared as: A Rs 6,000; B– Rs 9,000; C— Rs 6,000 and D– Rs 9,000. Share of Profits: A– Rs
60,000; B– Rs 45,000; C— Rs 30,000 and D Rs 15,000.
35. X's Commission Rs 27,500; Y's Commission Rs 22,500; Net Profit Rs 2,25,000; X and Y's
Share— Rs 1,12,500 each.
36. Ram—Rs 3,600 and Mohan— Rs 2,400.
37. Interest on Brij's Drawings—Rs 2,400 and Interest on Mohan's Drawings— Rs 1,800.
38. Interest on Drawings— Rs 7,200.
21
39. Interest on Drawings— Rs 350.
40. Interest on Drawings—Rs 810.
41. Interest on Drawings— Rs 250.
42. Case 1— Rs 1,875; Case 2—Rs 1,125; Case 3— Rs 1,500.
43. Interest on Drawings: Kanika— Rs 1,500; Gautam— Rs 2,250.
44. C will get Rs 23,200 and D— Rs 56,800.
45. Share of Profit: Amit—Rs 75,420; Vijay—Rs 50,280.
46. Sohan's Capital A/c—Rs 4,69,750; Mohan's Capital A/c—Rs 3,37,250.
47. Commission of B Rs 1,581; Share of Profit: A— Rs 23,714; B Rs 7,905; Capital A/cs: A—
Rs 74,714; B Rs 41,286.
48. Closing Balances of Capital A/cs: Sajal — Rs 8,09,000; Kajal—Rs 5,31,100; Share of Profit:
Sajal— Rs 3,87,000; Kajal— Rs 1,93,500; General Reserve—Rs 64,500.
49. Current Accounts : Ali — Rs 19,642; Bahadur— Rs 10,883; Amount transferred to Reserve
— Rs 3,475.
50. Share of Profit: A– Rs 4,170 and B – Rs 2,780; Balances of Capital A/cs: A Rs 57,170 and B
Rs 37,080.
51. Divisible Profit— Rs 1,40,000; A's share Rs 50,000; B's share— Rs 44,000; C's share — Rs
46,000.
52. Share of Profit: A— Rs 15,000; B — Rs 9,000; C—Rs 6,000; Balances of Current A/cs: A
(Cr.) — Rs 12,000; B (Cr.)— Rs 9,500; C (Cr.)—Rs 7,000.
53. Divisible Profit Rs 2,76,190; Commission (Binita) — Rs 23,810; General Reserve— Rs
50,000; Share of Profit: Amit— Rs 92,063; Binita— Rs 92,063, Charu— Rs 92,064; Closing
Balances of Capital A/cs: Amit— Rs 3,17,063; Binita Rs 3,25,873; Charu—Rs 4,07,064.
54. Interest on Anshul's Capital— Rs 20,000; Salary to Asha— Rs 12,000.
55. Share of Profit: Kabir— Rs 40,000; Zoravar— Rs 32,000; Parul— Rs 88,000.
56. Interest on Capital: X—Rs 24,000; Y—Rs 18,000; Salary: X Rs 60,000; Y— Rs 90,000;
Commission: X—Rs 17,500;
Interest on Drawings: X Rs 5,000; Y—Rs 6,250; Share of Profit: X– Rs 1,18,125; Rs
93,125; Capital Balance: X Rs 3,14,625; Y—Rs 2,19,875; Interest on X's Loan: Rs 1,500;
Transfer to General Reserve— Rs 50,000.
57. Debit Nisha's Capital A/c and Credit Reya's Capital A/c by Rs 55,000.
58. Debit P's Current A/c and Credit Q's Current A/c by Rs 6,000.
59. Debit Azad by Rs 1,000 and Credit Benny by Rs 1,000.
60. Debit Ram and Credit Sohan by Rs 300.
61. Debit Shyam's Current A/c by Rs 200 and Mohan's Current A/c by Rs 400; Credit Ram's
Current A/c by Rs 600.
62. (a) Simrat— Rs 35,400; Bir— Rs 27,300; (b) Simrat— Rs 33,960; Bir— Rs 25,140.
63. Debit Pankaj's Capital A/c and Credit Anu's Capital A/c by Rs 1,000.
64. Debit Usha's Capital A/c and Credit Mita's Capital A/c by Rs 6,816.

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65. Dr. A's Current A/c— Rs 16,080; Cr. B's Current A/c— Rs 14,253 and C's Current A/c—Rs
1,827.
66. Debit P's Capital A/c by Rs 300; Credit Q's Capital A/c by Rs 8 and R's Capital A/c by Rs
292.
67. Debit Anil by Rs 550 and Credit Mohan by Rs 550; Corrected Profit transferred to each
partner Rs 6,100.
68. Debit Bina's Capital A/c and Credit Piya's Capital A/c by Rs 5,856.
69. Dr. Rajesh's Current A/c Rs 17,800; Cr. Naveen's Current A/c— Rs 10,000 and Qadir's
Current A/c—Rs 7,800.
70. Debit Shristhi and Credit Mannu by Rs 2,880.
71. Dr. Sudhir's Current A/c—Rs 6,000; Cr. Mudit's Current A/c—Rs 1,000 and Uday's Current
A/c—Rs 5,000.
72. Dr. A's Capital A/c— Rs 2,520 and C's Capital A/c Rs 2,740; Cr. B's Capital A/c—Rs 5,260.
73. Dr. Bobby's Capital A/c Rs 14,402; Cr. Abhir's Capital A/c— Rs 10,112; and Vineet's
Capital A/c—Rs 4,290.
74. Dr. Saroj's Capital A/c Rs 2,350 and Mahinder's Capital A/c— Rs 1,300; Cr. Umar's Capital
A/c— Rs 3,650.
75. Debit A by Rs 66,000 and Credit B by Rs 30,000 and C by Rs 36,000.
76. Partners' Capital Accounts: A Rs 3,98,790; B—Rs 3,01,210; Capitals on 1.4.2018: (Opening
Capital): A— Rs 3,28,000; B— Rs 2,56,000; Interest on Capital : A Rs 16,400; B– Rs
12,800; Interest on Drawings:A— Rs 900; B– Rs 450.
77. Debit Harry by Rs 50,000 and Porter by Rs 50,000; Credit Ali by Rs 1,00,000.
78. A's share— Rs 26,400; B's share— Rs 17,600; C's share— Rs 10,000.
79. Share of Profit:A— Rs 1,60,000; B—Rs 80,000; C—Rs 75,000.
80. Net Profit Rs 1,27,500; Share of Profit: X— Rs 51,000 – Rs 1,750 = Rs 49,250; Y— Rs
1,27,500 x 3/10 = Rs 38,250; Z– Rs 38,250 + Rs 1,750 = Rs 40,000.
81. Deficiency to be met by B in: 2019—Rs 20,000; 2020 Nil.
82. Deficiency of C– Rs 1,000 borne by A and B equally, i.e., Rs 500 each.
83. Deficiency of Vandana— Rs 37,500 borne by Vikas— Rs 22,500 and Vivek— Rs 15,000.
Share of Profit: Vikas Rs 4,50,000; Vivek— Rs 3,00,000;Vandana— Rs 1,50,000.
84. (a) A Rs 14,400; B— Rs 9,600 and C– Rs 6,000;
(b) A Rs 14,000; B— Rs 10,000 and C–Rs 6,000;
(c) A Rs 15,000; B Rs 9,000 and C Rs 6,000;
(d) A— Rs 14,250; B Rs 9,750 and C- Rs 6,000.
85. Share of Profit: A— Rs 96,750; B— Rs 72,000; C— Rs 56,250.
86. For Deficiency-year ended 31st March, 2018:
Dr. P's Capital A/c— Rs 3,600 and Q's Capital A/c— Rs 2,400; Cr. R's Capital A/c Rs
6,000.
For Deficiency-year ended 31st March, 2020:

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 Dr. P's Capital A/c— Rs 32,400 and Q's Capital A/c— Rs 21,600; Cr. R's Capital A/c Rs
54,000.
87. Share of Profit: Asgar— Rs 70,000; Chaman— Rs 40,000 and Dholu— Rs 70,000.
88. Share of Profit: Ankur Rs 4,14,000; Bhavna— Rs 1,80,000 and Disha—Rs 1,26,000.
89. Dr. Ajay's Capital A/c: Rs 6,400 and Binay's Capital A/c: Rs 2,000; Cr. Chetan's Capital A/c
Rs 8,400.
90. Dr. Bhanu's Capital A/c— Rs 21,000 and Chand's Capital A/c Rs 2,000; Cr. Alia's Capital
A/c— Rs 23,000.
91. A's share—Rs 41,400; B's share— Rs 18,600; C's share—Rs 15,000.

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