GURUKRIPA COACHING CLASSES
2nd FLOOR D.S. TOWER NAGAR NIGAM ROAD SANGANER
PRACTICE TEST CHP 1
Class 12 - Accountancy
Time Allowed: 1 hour and 30 minutes Maximum Marks: 20
1. Ram, Raj and George are partners sharing profits in the ratio 5 : 3 : 2. According to the partnership agreement [1]
George is to get a minimum amount of ₹ 10,000 as his share of profits every year. The net profit for the year
2013 amounted to ₹ 40,000. Prepare the Profit and Loss Appropriation Account.
2. Himanshu withdraws ₹ 2,500 at the end of each month. The Partnership deed provides for charging the interest [1]
on drawings @ 12% p.a. Calculate interest on Himanshu’s drawings for the year ending March 31, 2017.
3. Triphati and Chauhan are partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals were ₹ [2]
60,000 and ₹ 40,000 as on April 01, 2019. During the year they earned a profit of ₹ 30,000. According to the
partnership deed both the partners are entitled to ₹ 1,000 per month as Salary and 5% p.a.interest on their capital.
They are also to be charged an interest of 5% on their drawings, irrespective of the period, which is ₹ 12,000 for
Tripathi, ₹ 8,000 for Chauhan. Prepare Partner’s capital/current accounts when, capitals are fixed.
4. Lokesh and Azad are partners sharing profits in the ratio 3:2, with capitals of ₹ 50,000 and 30,000, respectively. [2]
Interest on capital is agreed to be paid @ 6% p.a. Azad is allowed a salary of ₹ 2,500 p.a. During 2016, the
profits prior to the calculation of interest on capital but after charging Azad’s salary amounted to ₹ 12,500. A
provision of 5% of profits is to be made in respect of manager’s commission. Prepare partner’s capital accounts
and profit and loss Appropriation Account.
5. Ram and Raja are in partnership since April 1st, 2022. No Partnership agreement was made. They contributed ₹ [3]
4,00,000 and 1,00,000 respectively as capital. In addition, Ram had given loan of ₹ 1,00,000 to the firm on
October 01st, 2022. Due to long illness, Ram could not participate in business activities from August 1st 2022 to
September 30, 2022. The profits for the year ended March 31st, 2023, amounted to ₹ 1,80,000.
Dispute has arisen between Ram and Raja.
Ram Claims:
i. he should be given interest @ 10% per annum on capital and loan;
ii. Profit should be distributed in the proportion of capital;
Raja Claims:
i. Profits should be distributed equally;
ii. He should be allowed ₹ 2,000 p.m. as remuneration for the period he managed the business, in the absence of
Ram;
iii. Interest on Capital and loan should be allowed @ 6% p.a.
You are required to settle the dispute between Ram and Raja. Also, prepare Profit and Loss Appropriation
Account.
6. The partnership agreement between Maneesh and Girish provides that: [3]
i. Profits will be shared equally;
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ii. Maneesh will be allowed a salary of ₹400 p.m;
iii. Girish who manages the sales department will be allowed a commission equal to 10% of the net profits, after
allowing Maneesh’s salary;
iv. 7% interest will be allowed on partner’s fixed capital;
v. 5% interest will be charged on partner’s annual drawings;
vi. The fixed capitals of Maneesh and Girish are ₹1,00,000 and ₹80,000, respectively. Their annual drawings
were ₹16,000 and ₹14,000, respectively. The net profit for the year ending March 31, 2015, amounted to
₹40,000.
Prepare firm’s Profit and Loss Appropriation Account.
7. Ramesh and Suresh were partners in a firm sharing profits in the ratio of their capitals contributed on [4]
commencement of business which were ₹ 80,000 and ₹ 60,000 respectively. The firm started business on April
1, 2016. According to the partnership agreement, interest on capital and drawings are 12% p.a. and 10% p.a.,
respectively. Ramesh and Suresh are to get a monthly salary of ₹ 2,000 and ₹ 3,000, respectively.
The profits for year ended March 31, 2017 before making above appropriations was ₹ 1,00,300. The drawings of
Ramesh and Suresh were ₹ 40,000 and ₹ 50,000, respectively. Interest on drawings amounted to ₹ 2,000 for
Ramesh and ₹ 2,500 for Suresh. Prepare Profit and Loss Appropriation Account and partners’ capital accounts,
assuming that their capitals are fluctuating.
8. Sukesh and Vanita were partners in a firm. Their partnership agreement provides that: [4]
i. Profits would be shared by Sukesh and Vanita in the ratio of 3:2;
ii. 5% interest is to be allowed on capital;
iii. Vanita should be paid a monthly salary of ₹ 600.
The following balances are extracted from the books of the firm, on March 31, 2017.
Sukesh Vanita
Amount (₹) Amount (₹)
Capital Accounts 40,000 40,000
Current Accounts (Cr.) 7,200 (Cr.) 2,800
Drawings 10,850 8,150
Net profit for the year, before charging interest on capital and after charging Sukesh’s salary was ₹ 9,500.
Prepare the Profit and Loss Appropriation Account and the Partner’s Current Accounts.
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