MEHUL SIR’S

MO: 98 245 98 542 GROUP OF EDUCATION

STD 12 ACCOUNTS PART 1 INTRODUCTION OF PARTNERSHIP
DEFINATION OF PARTNERSHIP: Section 4 of the Indian Partnership Act 1932, defines partnership as
“It is the relationship between persons who have agreed to share profits of the business cariied on by all
or any of them acting for all.”
The persons joining the partnership are individually known as Partners and collectively they are called
firm.
CHARECTERISTICS OF PARTNERSHIP:
- It comes into existence by an agreement. The agreement may be oral or written. An agreement is
indispenesable. Written agreement is desirable and advisable.
- Partnership is started to earn profit according to predetermined profit sharing ratio. If no provision made
in contract than profit and loss is distributed equally.
- Partnership firm is formed to legal business.
- The business of the firm is carry on by every partner. Every partner has a right to take part in the
management of the business. Every partner is an agent of the other partner.
- The section 464 of the companies’ act 2013 empowers the government to prescribe maximum number
of partner in a firm subject to maximum 100. The government has prescribe maximum number of
partners in a firm to be 50 vide Rule 10 of companies act 2014.
- The liabilities of all partners are unlimited.
- The ownership and management are not separate. The partners are the owners and they manage the
business.
PARTNERSHIP DEED:
1. DETAILS OF PARTNERS: Information about name, address, and other detais of partners.
2. DETAILS OF FIRM: Name & Address
3. TYPES OF BUSINESS:
4. COMMENSEMENT OF BUSINESS: Information about the date of commensement of business.
5. CAPITAL: The amount of capital of each partner. It is not mandatory to bring a capital by all
partnrs.
6. INTREST ON CAPITAL: Whether intrest on capitals is to be allowed.
7. DRAWINGS: The amount of drawings.
8. INTREST ON DRAWINGS: Intrest on drawings to be charged (if any)
9. PROFIT & LOSS: In which proportion profit or loss of business will be distributed is provided in
deed. If no provision is made in partnership deed, as per partnership act is distributed in equal
proportion.
10. SALARY, REMUNERATION, BONUS, COMMISSION TO THE PARTNER: The provision is
made in partnrship deed for salary, remuneration, bonus and commission to be paid to partners.
If not mention in deed than not.
11. INTREST ON LOAN PROVIDED BY PARTNER: The rate of intrest must be in partnrship deed. If
there is not any provision than according to partnership act 6% intrest should be paid.
12. GOODWILL: Valuation of goodwill at the time of admission, retirement etc.
13. DISSOLOTION OF FIRM: Provision for dissolution of firm must be mentioned in deed.
PROVISION OF PARTNERSHIP ACT, 1932:
1. Profit & losses are distributed equally among the partners.
2. Capital of partnrers are decided by them by mutual consent.
3. No salary, commission or bonus is payable to any partner.
4. The partners are entitled to 6% intrest p.a. on their loan.
5. No intrest is payable on Partner’s capital.
6. No intrest can be charged on drawings.
7. Any resonable expenses incurred by the partner on behalf of the firm must be reimbrused to him.

IMPORTANT NOTES :
There are two methods to maintained capital accounts in the books of partnership firm.
(1) Fluctuating Capital Account Method (2) Fixed Capital Account Method
If drawings is made at the beginning of every month , intrest will be calculated for 78 months. So
78
N = 12.
If drawings is made at the end of the every month, intrest will be calculated for 66 months .
66
N = 12.
FORMULA FOR CALCULATING INTREST ON DRAWINGS:
𝑃𝑅𝑁
I= . WHERE P = amount of Drawings, R = Rate of intrest,
100
COMMISSION ON PROFIT TO A PARTNER:
(a) If commission is to be calculated on profit before charging commission, then it is calculated as
follow:
𝑷𝒆𝒓𝒄𝒆𝒏𝒕𝒂𝒈𝒆 𝒐𝒇 𝑪𝒐𝒎𝒎𝒊𝒔𝒔𝒊𝒐𝒏
Net profit× 𝟏𝟎𝟎
..
(b)If commission is to be calculated on profit after charging commission, then it is calculated as
follows:
𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑜𝑓 𝑐𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛
Net Profit × 100+𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒
.

VARIOUS SUMS:
(1) A, B and C are partners sharing profit and loss in the ratio of 3:2:1. Their capitals on 31st march 2018
were Rs.40000, Rs. 30000, and Rs. 25000 after distributing profits. It was found after preparing
accounts that interest on capital at 5% was omitted. The profit for the year was Rs.15000 and partner’s
drawings were Rs.2500, Rs. 5000 and Rs.2500. Calculate intrest on capital.
(2) Palak, Mehul & Kiran are partners sharing profits and losses in the ratio of 3:2:1. Their capitals in
31st march, 2015, were Rs.80, 000, Rs. 60,000 & Rs. 50,000 after distributing profit. It was found after
preparing accounts that interest on capital at 5% was omitted. The profit for the year was Rs.50, 000 and
Partner’s drawings were Rs.5, 000, Rs.10, 000 & RS. 5000 respectively. Calculate intrest on capital.
(3)Devarsh, Vedanshi, & Raxa are partner sharing profits and losses in the ratio of 5:3:2. After preparing
accounts at the close of the year, it was found that interest n drawings as given below have been
omitted.
Devarsh Rs, 5000 Vedanshi Rs. 4000 Raxa Rs. 3000
Give the adjustment entry.
(4)Mohit & Suraj are partners of one firm. Ratio of their capital is 5:4. Mohit gets Rs. 3,000 as monthly
salary and commission after deducting commission from net profit at 6%. If the firm gets profit of Rs. 1,
42,000 at the end of the year than what amount should be received by Mohit.
(5) Pankaj, Hardik, Akshit are partner sharing profit & loss equally. Their total capital is Rs. 4,00,000.
The ratio of their capitals is 2:3:5. Firm allows interest at 6% p.a. on capitals. Pankaj has received Rs. 1,
24,800 including the interest on capital, what will be the amount received by partner Akshit including
interest on capital.
6) Mankad & Machchhar is partners in a firm. Mankad withdraw Rs.4000 from the firm on the first day of
every month. While Machchhar withdraw Rs. 4000 on the last day of every month. Find the difference in
the interest at 12 % on the drawings of both.
(7)Prayag, Jaishil & Viraj are partners in a partnership firm. They share profit and loss in the ratio of
3:2:1. Their capital is Rs. 10,000, Rs. 20,000 and Rs. 30,000 respectively. They receive 10% interest on
their capital. Prayag received from profit including interest, total Rs. 4,000. Find out total profit of the
firm.
(8)Vijay, Dhvani and Mehul are partners sharing Profit – loss in the ratio of 2:2:1. Mehul is to be paid a
commission of 10% on the remaining profit after charging such commission. Total Profit of the firm was
Rs. 44000. Find out what total income will be received by all?
(9)Atpatia, Khatpatia and Zatpatia share profit and losses in the ratio of 3:2:1. Khatpatia gets
commission at 5% on profit after deducting the commission. If Khatpatia gets Rs.8000 as commission,
find out the profit of firm before charging commission and also find out the share of Zatpatia in profit.
(10) Manav & Mihir is partners in a firm. Manav withdraw Rs.9000 from the firm on the first day of every
month. While Mihir withdraw Rs. 9000 on the last day of every month. Find the difference in the interest
at 10 % on the drawings of both.
(11) Maharishi, Yogi and Divyang are equal partners. Their total capital of firm is Rs. 800000. The ratio
of their capital 5:3:2. Firm allows interest at 6% per annum on capital. Divyang has received Rs. 249600
including the interest on capital. What will be amount received by other two partners.
(12)Kanchan and Drusty are partners of firm. The ratio of their capital is 3:2. Kanchan received 8%
commission on profit, after charging such commission. Profit of the firm is Rs. 290628. How much total
amount will be received by both?
(13)Three partners Tulsi, Abhi and Vidhi distributed their profit Rs.90000 in the ratio of 2:3:1 through
mistake instead of in the ratio of 5:3:2. Give rectifying entry.
(14) Padmavati and Ratansingh are partners in a firm. Their capital ratio is 5:4 Ratansingh is to be paid
a commission of 5% on net profit after charging commission. Profit of the firm for the year ended 31-3-
2018 was Rs.78225. Find how much amount they both get.
(15) Amarendra, Mahendra and Kattappa are partners of partnership firm. They share profit and loss in
the ratio of 3:2:1. Their capital is Rs. 100000, Rs. 200000 and Rs. 300000 respectively. They received
10% interest on capital. Kattappa received from profit including interest, total Rs40000. Find out total
profit of the firm.
(16)Raju, Farhan and Rancho are equal partners in a firm. Their total capital is Rs. 500000. The capitals
of them are in the ratio of 5:3:2 respectively. Rancho received Rs. 156000 including interest on capital.
The firm is paying interest on capital. Find out the amount to be received by Raju.
(17) Jay, Veeru and Thakur are partners sharing profit-loss in the ratio of 2:2:1. Thakur is to be paid a
commission of 10% on the remaining net profit after charging such commission. Total profit of the firm
was Rs 88000. Find out what total income will be received by Thakur.
(18)The closing balance of Yash’s Capital account is Rs 64000 after giving effect to drawings of Rs.
4000 and his share of profit Rs.6000. Interest on the capital of the partner is to be charged @ 5% p.a.
Find the interest on capital.
(19) A received 2.5 times profit than B and C received ¾ profit of B. If their total profit of the firm is Rs
68000 then what will be the share of C?
(20)A get half of B’s share and C gets on third of A’s share. How much will each partner get if the profit
of the firm is Rs.90000.
(21) Surya, Chandra and Tara are partners of a firm, sharing profit and loss in the ratio of 4:3:2. But
Chandra has guaranteed a minimum amount of Rs 24000 to Tara by way of his share of profit. Calculate
the share of profit of each partner if the profit of the firm is Rs. 72000 for the year ending on 31st march,
2018.
(22)Rushabh, Aagam and Shivansh are partners in a firm. Their capital ratio is 3:2:1. Shivansh is to be
paid a commission of 6% on net profit remaining after charging such commission. Profit of the firm for
the year ended 31-3-2018 was Rs.34980. Find out what total amount will be received by all.
(23) Rahul, Sachin and Virndra are partners sharing profits and losses in the ratio 2.5: 3.5:4.5. Manager
is to be paid a commission of 10% on the remaining net profit after charging commission. Sachin got
Rs.28000 as his share from profit. Calculate Manager’s commission.
(24) Soham, Meet, and Gaurav are partners sharing profit and loss in the ratio of 5:3:2. Gaurav was
guaranteed a minimum of Rs. 56000 in the profit of the firm by the partners Soham and Meet. If the profit
of the firm for the year ended is Rs 200000, what would be the share of each partner in the profit?
(25)A gets half of B’s share and C gets one third of A’s share. How much profit will each partner get if
the profit of the firm is Rs 240000?
(26)Jaishil, Viraj and Ravi are partners of a firm. Their capital as on 1-3-2017 was Rs.80000, Rs. 60000
and Rs.160000 respectively. After distributing profit it was found that they omitted to charge interest on
capital at 8% p.a. Give journal entry for rectifying the error.
(27)Parth, Krunal and Brijesh are equal partners. Their total capital of firm is Rs.400000. The ratio of
their capital os 5:3:2. Firm allows interest at 6% p.a. on capital. Partner Brijesh has received Rs.124800
including the interest on capital, what will be the amount received by others.
(28) Dev and Veda are partners of the firm; the ratio of their capitals is 3:2. Dev is entitled for 8%
commission on the profit, after charging such commission. For the year ended on 31-3-2018, the profit of
the firm before charging commission is Rs 96,876. How much total amount will be received to both?
(29)A, B and C are partners sharing profit and loss in the ratio of 5:3:2. After preparing accounts at the
close of the year, it was found that intrest on drawings as given below has been omitted.
A Rs. 2500 B Rs.2000 C Rs. 1200.
Give adjustment entry.
(30) Three partners A, B and C distributed their loss Rs 60000 in the ratio of 2:3:1 through mistake
instead of in the ratio of 5:3:2. Give rectifying entry.
(31) Diya & Isha is partners in a firm. Diya withdraw Rs.19000 from the firm on the first day of every
month. While Isha withdraw Rs. 19000 on the last day of every month. Find the difference in the interest
at 11 % on the drawings of both.
(32) Aaltu and Faltu are partners in a firm. Their capital ratio is 3:1 Aaltu is to be paid a commission of
8% on net profit after charging commission. Profit of the firm for the year ended 31-3-2019 was
Rs.469800. Find how much amount they both get.
(33) Sachin, Jignesh, and krunal are equal partners in a firm. Their total capital is Rs. 1,00,000. The
capitals of Sachin, Jignesh and Krunal are in the ratio of 5:3:2 respectively. Krunal received Rs.31200
including intrest on capital. The firm is paying 6% intrest in capital. Find out the amount to be received by
partner Sachin.
(34) An accountant calculated a commission for the manager @ 10 % net profit after charging such
commission which was Rs. 28479. But he found that there was some stock in the closing stock for which
the price was to be taken by reducing Rs. 3630. He rectifid. Now, for which amount, as the commission,
will the manager be entitled?
The partner, Mehul gets 2/5 of profits, which amount as a profit will get?
[ Hint : If closing stock is reduced, the profit will also be reduced by Rs. 3630 i.e. Rs. 330. Corrected
profit will be 28149 × 10= 281490.]
(35)The account of Yogi stores has calculated 10% commission on net profit after charging commission
and arrived at a figure of Rs. 18,986. But while calculating this profit, by mistake the amount of bad
debts was taken more by Rs 2,420. He has rectified the accounts accordingly. Now, How much amount
of commission receivable by Manager? How much amount will be received by the partner modi have 2/5
th share in the profit?
[Manager’s commission Rs. 19,206 (211266×10/100)
Navneet will get Rs. 76824(192060 ×2/5]