Niraj Jha
Dc chowk & Sector - 16
FUNDAMENTAL- GUARANTEE
Class 12 - Accountancy
Time Allowed: 1 hour Maximum Marks: 25
1. X, Y and Z are partners in 5 : 4 : 1. Z is guaranteed that his share of profit will not be less than ₹ 80,000. Any [1]
deficiency will be borne by X and Y in 3 : 2. Firm’s profit was ₹ 5,60,000. How much deficiency will be borne
by Y?
a) ₹ 2,09,600 b) ₹ 9,600
c) ₹ 14,400 d) ₹ 2,14,400
2. A, B and C are partners in the ratio of 5 : 3 : 2. A has given guarantee to C for a minimum profit of ₹ 7,000 p.a. [1]
for the year ending 31st March 2021, B's share of profit is ₹ 9,000. A's share of profit after meeting deficiency
will be:
a) 15,000 b) 4,500
c) 14,000 d) 700 (Loss)
3. Rohit, Raja and Manish are partners sharing profits in the ratio of 2 : 2 : 1. Rohit is guaranteed minimum profit [3]
of ₹ 80,000 per annum. Net Profit for the year ended 31st March, 2023 is ₹ 50,000. Prepare Profit & Loss
Appropriation Account for the year.
4. Yogesh, Mohit and Ram are partners sharing profits equally. Yogesh is guaranteed minimum annual profit of ₹ [3]
1,00,000. Ram is to get Commission @ 5% of Net Sales and the commission is determined at ₹ 25,000. Net
Profit for the year ended 31st March, 2023 is ₹ 1,25,000. Prepare Profit & Loss Appropriation Account for the
year.
5. X and Y were sharing profits in the ratio of 2 : 1. On 1st April, 2022 they admitted Z for 1
4
th share in the profits. [3]
Z is guaranteed a minimum profit of ₹ 1,00,000 for the year. Any deficiency in Z’s share is to be borne by X and
Y in the ratio of 3 : 2. Losses for the year ending 31st March, 2023 amounted to ₹ 1,20,000. Record necessary
entries.
6. Ravi, Rahul and Mohit are partners sharing profits equally. Rahul is guaranteed minimum profit of ₹ 2,00,000 [4]
per annum. Salary is payable to Rahul of ₹ 10,000 per month. Net Profit for the year ended 31st March, 2023 is ₹
6,60,000. Prepare Profit & Loss Appropriation Account for the year.
7. A, B and C were partners in a firm. On 1st April, 2022 the balances in their capital accounts stood at ₹ 8,00,000, [4]
₹ 6,00,000 and ₹ 4,00,000 respectively. As per the provisions of the partnership deed, partners were entitled to
interest on capital @ 5% p.a., salary to B ₹ 3,000 per month and a commission of ₹ 12,000 to C.
A's share of profit, excluding interest on capital, was guaranteed at ₹ 25,000 p.a. B's share of profit, including
interest on capital but excluding salary was guaranteed at ₹ 55,000 p.a. Any deficiency arising on that account
was to be met by C. The profits of the firm for the year ending 31st March, 2023 amounted to ₹ 2,16,000.
Prepare Profit & Loss Appropriation Account for the year ending 31st March, 2023.
OR
1/2
Niraj Jha 9999800978
Yogesh, Ravi and Rohit are partners in a firm. For the year ended 31st March, 2023 the profit of the firm ₹ 1,20,000
was distributed equally among them, without giving effect to the following terms of the partnership Deed:
i. Ravi's guarantee to the firm that the firm would earn a profit of at least ₹1,35,000. Any shortfall in these profits
would met by him.
ii. Profits to be shared in the ratio of 2 : 2 : 1.
You are required to pass the necessary Journal entries to rectify the error in accounting.
8. Ram, Ravi and Preeti are partners in a firm. On 1st April, 2022, the balance in their Capital Accounts stood at ₹ [6]
14,00,000, ₹ 6,00,000 and ₹ 4,00,000 respectively. They shared profits in the proportion of 7 : 3 : 2 respectively.
Partners are entitled to interest on capital @ 6% per annum and salary to Ravi @ ₹ 50,000 p.a.and a commission
of ₹ 3,000 per month to Preeti as per the provisions of the Partnership Deed. Ravi's share of profit (excluding
interest on capital) is guaranteed at not less than ₹ 1,70,000 p.a. Preeti's share of profit (including interest on
capital but excluding commission) is guaranteed at not less than ₹ 1,50,000 p.a. Any deficiency arising on that
account shall be met by Ram. The profit of the firm for the year ended 31st March, 2023 amounted to ₹
9,50,000.
Prepare'Profit and Loss Appropriation Account for the year ended 31st March, 2023.
2/2
Niraj Jha 9999800978
