A, B, C and D are partners sharing profits and losses in the ratio of 4 : 3 : 3 : 2. Their respective fixed capitals on 31st March, 2010 were Rs 60,000, Rs 90,000, Rs 1,20,000 and Rs 90,000 respectively. After preparing the final accounts for the year ended 31st March, 2010, it was discovered that interest on capital @ 12% per annum was not allowed and interest on drawings amounting to Rs 2,000, Rs 2,500, Rs 1,500 and Rs 1,000 respectively was also not charged.
Pass the necessary adjustment journal entry showing your working clearly.
Keshav, Krishna and Murari were in partnership sharing profits and losses in the ratio of 3 : 2 : 1. Their fixed capitals were: ₹ 12,00,000, ₹ 10,00,000 and ₹ 8,00,000 respectively. It was agreed that interest on capital will be allowed at 10% per annum. Partners were entitled to salaries as follows:
Keshav ₹ 5,000 per month and Krishna ₹ 3,000 per quarter.
Profit of the firm for the year ended 31st March, 2022 was ₹ 6,72,000.
Amount of profit transferred to Partners' Current Accounts was:
Hina and Neena are partners in a firm. Neena withdrew ₹ 10,000 per month at the beginning of each month during the year ended 31st March, 2022. Interest on drawings was to be charged @ 6% per annum.
Interest on Neena's drawings for the year ended 31st March, 2022 will be:
The business of a partnership concern may be carried on by all the partners, or any of them acting for all. The above statement highlights which of the following features of partnership?
If a fixed amount is withdrawn by a partner at the end of each quarter, interest on drawings on the total amount withdrawn will be calculated for:
P, Q and R are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. For the year ended 31st March, 2022, interest on capital was credited to them @ 10% p.a. instead of 5% p.a. Their fixed capitals were ₹ 2,00,000; ₹ 1,00,000; ₹ 50,000 respectively. The necessary adjustment entry to rectify the error will be:
Roshan, Mahesh, Gopi and Jai are partners sharing profits and losses in the ratio of 3 : 3 : 2 : 2. The balances of capital accounts on 1st April, 2015 were: Roshan ₹8,00,000, Mahesh ₹5,00,000, Gopi ₹6,00,000 and Jai ₹6,00,000.
After the accounts for the year ended 31st March, 2016 were prepared, it was discovered that interest on capital @ 10% per annum as provided in the partnership deed had not been credited to the partners’ capital accounts before the distribution of profits.
You are required to rectify the error by passing a single adjusting journal entry.
A, B and C were partners in a firm having capitals of Rs 60,000; Rs 60,000 and Rs 80,000 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 interest on capital @ 5% p.a. C being the working partner was also entitled to a salary of Rs 6,000 p.a. The profits were to be divided as follows:
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 made a profit of Rs 1,56,000 before charging any of the above items.
Prepare the Profit & Loss Appropriation Account.
Pass necessary journal entry for apportionment of profit.
Yadu, Vidu and Radhu were partners in a firm sharing profits in the ratio of 4 : 3 : 3. Their fixed capitals on 1st April, 2018 were ₹ 9,00,000, ₹ 5,00,000 and ₹ 4,00,000 respectively. On 1st November 2018, Yadu gave a loan of ₹ 80,000 to the firm. As per the partnership agreement:
The firm earned profits of ₹ 2,53,000 (after interest on Yadu’s loan) during the year 2018 - 19. Partners’ drawings for the year amounted to Yadu: ₹ 80,000, Vidu: ₹ 70,000 and Radhu: ₹ 50,000. Prepare Profit and Loss Appropriation Account for the year ending 31st March 2019.
Give the meaning of Liability of Partnership as a feature of partnership.