Chapter 2: Accounting for Partnership : Basic Concept

Important Questions

1. What are the essential features of a partnership?

2. Write the contents for partnership deed?

3. X and Y started business with capital of Rs. 1,00,000 and Rs. 60,000 on 1st April 2018. Y is entitled to a salary of Rs. 800 per month. Interest is allowed on capitals and is charged on drawings at 6% per annum. Profits are to be distributed equally after the above noted adjustments. During the year X withdrew Rs. 16,000 and Y withdrew Rs. 20,000. The profit for the year before allowing for the terms of the partnership deed came to Rs. 60,000. Assuming the capitals to be fixed , prepare the capital and current accounts of X and Y.

4. Sita and Gita are partners in a firm. Balances of their capital accounts as on 1st April, 2018 were as follows; Sita Rs. 40,000, Gita Rs. 30,000. Sita introduced Rs. 5,000 as an additional capital on 1st October 2018 and Gita introduced Rs. 7,500 as additional capital on 1st November, 2018. Sita drew capital amounting to Rs. 7,500 on 1st January 2019 and Gita withdrew capital amounting Rs. 2,500 on 1st February, 2019. They have further agreed to allow interest on capital @12% per annum. Books of the accounts of the firm are to be closed on 31st March 2019.
Calculate interest to be allowed on partner’s capital.

5. Calculate the interest on drawings of X @ 10% p.a. for the year ended 31st March, 2018 in each of the following cases:-

  1. If his drawings during the year were Rs. 12,000
  2. If he withdrew Rs. 1,000 p.m. at the beginning of every month.
  3. If he withdrew Rs. 1,000 p.m. at the end of every month.
  4. If he withdrew Rs. 1,000 p.m. In the middle of each month.
  5. In he withdrew the following amounts; April 30th Rs. 3,000, June 30th Rs. 2,000, October 1st Rs. 4,000 , December 31st Rs. 1,500, February 1st 2,500
  6. If he withdrew Rs. 3,000 at the beginning of each quarter
  7. If he withdrew Rs. 3,000 at the end of each quarter.
  8. If he withdrew Rs. 3,000 during the middle of each quarter.

CUET Mock test

CUET Mock test