ISC Accountancy
Unit – I 2021-2022
Enfant India International School
Std.: XII
Marks: 40
Answer Question 1 from
part I and 4 question from part II
The intended marks for
questions are given in bracket [ ]
Question
paper is prepared in the ratio of 20:80 or 1:4
Part I – (12 Marks)
Question 1:- Answer briefly each of
the questions (i) to (iii). [2*6]
i. Give two differences between fixed and
fluctuating capital account.
ii. In what way would you
deal with rent paid to a partner for the use of his premises by the firm in
which he is a partner and why?
iii. List any two
circumstances under which the fixed capital of partners may change?
iv. Distinguish between
drawings against profit and drawings against capital.
v. Mention two items that may
appear on the credit side of a Partner’s Fixed Capital Account.
vi. What is the adjustment
and closing entry required at the time of finalization of accounts for interest
on Capital allowed to partners assuming that account are maintained under fixed
capital system?
Answer
any four Questions
Question 2. [7]
Girish and Satish are partners in a
firm. Their Capital on April 1,2019 were Rs. 5,60,000 and Rs. 4,75,000
respectively. On August 1,2019 they decided that their Capitals should be Rs.
5,00,000 each. The necessary adjustment in the Capitals were made by
introducing or withdrawing cash. Interest on Capital is allowed at 6% p.a. on
the Capitals. Compute interest on Capitals for the year ending March 31,2020.
Question 3. [7]
On 1st April, 2018, A and B commenced business with Capitals of Rs. 6,00,000 and 2,00,000 respectively. On 31st March, 2019 the net profit (before taking into account the provisions of deed) was Rs. 2,40,000. Interest on capital is to be allowed at 6% p.a. B was entitled to a salary of Rs. 60,000 p.a. The drawing of the partners A and B were Rs. 60,000 and Rs. 40,000 respectively. The interest on Drawing for A being Rs. 2,000 and B Rs. 1,000. Assuming that A and B are equal partners, prepare the Profit & Loss Appropriation A/c and Partner’s Capital Account as at 31st March, 2019.
Question 4. [7]
A, B and C are partners sharing profit and loss in the ratio of 2:2:1.Following
particulars are available from their books :
|
|
A
Rs. |
B
Rs. |
C
Rs. |
|
Capital
Accounts 1st April 2015 Current
Account 1st April 2015 Drawing Life
Insurance Premium 1st October, 2015 |
20,000 1,500 6,000 2,000 |
15,000 2,500 4,000 |
10,000 (Dr.) 2,000 4,000 |
Life Insurance Premium of A has been paid by the firm and has been
charged to General Expenses A/c. Partners are allowed 8% p.a. interest on their
capitals and charged at 10% p.a. on their drawings. Profits for the year ending
31st March, 2016 amounted to Rs. 20,800 before taking into account
the interest on capital and drawings. While calculating profits, depreciation
at the rate of 20% p.a. has been omitted on building of the value of Rs.
20,000. Prepare Profit and Loss Appropriation Account and Partner’s Current
Account for the year.
Question 5. [7]
A, B, C and D
partners sharing profits and losses in 2 : 2 : 3 : 3 respectively. After the
accounts of the year had been closed, it was found that interest on drawings @
6% p.a. has not been taken into consideration. The drawings of the partners
were : A Rs. 20,000; B Rs. 24,000; C Rs.
32,000; and D Rs. 44,000. Give the necessary journal entry.
A and B are
partners sharing profits and losses equally with capitals of Rs. 30,000 and Rs.
2,00,000 respectively. Their drawings during the year ending 31st
March, 2018 are as follows :
A’s drawing on 30-6-2017 Rs. 20,000
30-6-2017 Rs. 10,000
30-6-2017 Rs. 10,000
30-6-2017 Rs. 16,000
B drew Rs. 6,000 at the end of each month. The deed provides interest on
capitals and drawings at 10% p.a. Calculate interest on capitals and drawings.
Question 7. [7]
P and Q were
partners in a film sharing profits in 3 :
1 ratio. Their respective fixed capitals were Rs. 10,00,000 and Rs.
6,00,000. The partnership deed provided interest on capital @ 12% p.a. The
partnership deed further provided that interest on capital will be allowed
fully even if it will result into a loss to the firm. The net profit of the
firm for the year ended 31st March, 2018 was Rs, 1,50,000.
Pass necessary journal
entries in the books of the firm allowing interest on capital and division of
profit/loss among the partners.
