PURANCHANDRA VIDYANIKETAN
Worksheet 1
1 A,B and C are partners in a firm. A and B sharing profits in the ratio of 5:3 and C receiving a salary
of ₹300 per month, plus a commission of 5% on the profits after charging such salary and
commission, or 1/5th of the profits of the firm, whichever is larger. Any excess of the latter over the
former is, under the Partnership agreement, to be borne personally by B. The profit for the year
ended 31st March, 2018 amounted to ₹21,420 after charging C’s Salary. Prepare Profit and Loss
appropriation a/c.
2. Abdul, Kadir and Kasim were partners in a firm supplying food items. They were sharing profits in
the ratio of 5:3:2. Their capitals on 1st April, 2017 were ₹1,00,000, ₹1,50,000 and ₹3,00,000
respectively. After the floods in Uttaranchal, all partners decide to personally help the flood victims.
For this abdul withdrew ₹20,000 from the firm on 1st September 2017, Kadir instead of withdrawing
cash from the firm took some food items amounting to ₹24,000 from the firm and distributed to
the flood victims. On the other hand, Kassim withdrew ₹1,00,000 from his capital on 1st January
2018 and provided a Medical van for medical facilities in the flood affected areas.
The Partnership deed provides for charging interest on drawings @6% p.a. After the final accounts
were prepared, it was discovered that interest on drawings had not been charged. Give two values
that the partners wanted to communicate to the society. Pass adjusting journal entry.
3. Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio 3:3:4.Their
Partnership deed provided for the following: (i) Interest on Capital @5% p.a (ii) Interest on drawings @12% p.a
(iii) Interest on Partner’s loan @6% p.a (iv) Moli was allowed an annual salary of ₹4,000. Bhola was allowed a
commission of 10% of
Net Profit as shown by Profit and Loss account and Raj was guaranteed a profit of @1,50,000 after
making all the adjustments as provided in the Partnership agreement.
Their fixed capitals were Moli: ₹ 5,00,000; Bhola; ₹ 8,00,000 and Raj; ₹ 4,00,000. On 1st April, 2016,
Bhola extended a loan of ₹ 1,00,000 to the firm. The Net profit of the firm for the year ended 31st
March, 2017 before interest on Bhola’s loan was ₹ 3,06,000.
Prepare Profit and Loss appropriation Account of Moli, Bhola and Raj for the year ended 31st
March, 2017 and their current accounts assuming that Bhola withdrew ₹ 5,000 at the end of each
month, Moli withdrew ₹ 10,000 at the end of each quarter and Raj withdrew ₹ 40,000 at the end of
each half year.
