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CBSE Board Exam 2020: Check Important Questions & Answers for Class 12 Accountancy - Chapter 2 (Partnership Firm- Basic Concept)

If you are appearing for CBSE Class 12th Board exams 2020, check this list of important questions and answers from Chapter 2 of Accountancy.

Feb 10, 2020 19:03 IST
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Important Questions & Answers for Class 12 Accountancy - Chapter 2
Important Questions & Answers for Class 12 Accountancy - Chapter 2

CBSE Class 12th Accountancy exam is scheduled for 5th March 2020. In this article we have complied a list of important questions from Chapter 2: Partnership Firm- Basic Concept. Questions given below are important questions and are expected to be asked in Class 12 Accountancy board exam 2019-20

 Ques 1 Differentiate between Dissolution of Partnership and Dissolution of a Partnership Firm on the basis of ‘Court’s Intervention.’

Solution:

 

Dissolution of Partnership

 

Dissolution of a Firm

 

Court’s

intervention

 

The court does not intervene because partnership is dissolved by mutual agreement

 

The firm can be dissolved by court’s order.

 

 

Ques 2 Pass the necessary journal entry for treatment of Partner’s loan appearing on the asset side of the Balance Sheet in case of dissolution of a partnership firm.

Solution: Partner’s Capital A/c                Dr.

                             To Partner’s Loan A/c

(Being Partner’s Loan transferred to Partner’s Capital Account)

Ques 3 A new partner acquires two main rights in the partnership firm which he joins. State one of these rights.

Solution: Two main rights acquired by a newly admitted partner  

(i) Right to share the assets of the partnership firm;

(ii) Right to share the profits of the partnership firm.

Ques 4 In the absence of a partnership deed, in which ratio do the old partners sacrifice their share of profit in case of admission of a new partner ?

Solution: In the absence of Partnership deed, the old partners will sacrifice in their old ratio i.e. equally.

Ques 5 P, Q and R were partners in a firm. On 31st March, 2018 R retired. The amount payable to R ` 2,17,000 was transferred to his loan account. R agreed to receive interest on this amount as per the provisions of Partnership Act, 1932. State the rate at which interest will be paid to R.

Solution: 6% p.a

Ques 6 Sonu and Rajat started a partnership firm on April 1, 2017. They contributed Rs. 8,00,000 and Rs. 6,00,000 respectively as their capitals and decided to share profits and losses in the ratio of 3 : 2.  The partnership deed provided that Sonu was to be paid a salary of Rs. 20,000 per month and Rajat a commission of 5% on turnover. It also provided that interest on capital be allowed @ 8% p.a. Sonu withdrew Rs. 20,000 on 1st December, 2017 and Rajat withdrew Rs. 5,000 at the end of each month. Interest on drawings was charged @ 6% p.a. The net profit as per Profit and Loss Account for the year ended 31st March, 2018 was Rs. 4,89,950. The turnover of the firm for the year ended 31st March, 2018 amounted to ` 20,00,000. Pass necessary journal entries for the above transactions in the books of Sonu and Rajat.

Solution: 

Ques 7 Meera, Sarthak and Rohit were partners sharing profits in the ratio of 2 : 2 : 1. On 31 March, 2018, their Balance Sheet was as follows :

Sarthak died on 15th June, 2018. According to the partnership deed, his executors were entitled to :

(i) Balance in his Capital Account.

(ii) His share of goodwill will be calculated on the basis of thrice the average of the past 4 years’ profits.

(iii) His share in profits up to the date of death on the basis of average profits of the last two years. The time period for which he survived in the year of death will be calculated in months.

(iv) Interest on capital @ 12% p.a. up to the date of his death. The firm’s profits for the last four years were :

2014 – 15 Rs. 1,20,000, 2015 – 16 Rs. 2,00,000, 2016 – 17 Rs. 2,60,000 and 2017 – 18 Rs. 2,20,000.

Sarthak’s executors were paid the amount due immediately. Prepare Sarthak’s Capital Account to be presented to his executors.

Solution: 

Working :

(i) Goodwill

Average profit for 4 years

(1,20,000 + 2,00,000 + 2,60,000 +, 2,20,000)/4 = 8,00,000/4 = 2,00,000

Goodwill = 2,00,000 x 3 = 6,00,000

Sarthak’s Share of Goodwill = 6,00,000 x 2/5 = 2,40,000

(ii) Sarthak's Share of Profit

4,80,000/2 = 2,40,000 x (2.5/12) x (2/5) = 20,000

Ques 8 Pass necessary rectifying journal entries for the following omissions committed while preparing Profit and Loss Appropriation Account. You are also required to show your workings clearly.

(i) A, B and C were partners sharing profits and losses equally. Their fixed capitals were A < 4,00,000; B < 5,00,000 and C < 6,00,000. The partnership deed provided that interest on partners’ capital will be allowed @ 10% per annum. The same was omitted.

(ii) P, Q and R were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their partnership deed provided that interest on partners’ drawings will be charged @ 18% p.a. Interest on the partners’ drawings was < 1,000, < 500 and < 2,000 respectively. The same was omitted.

Solution: 

Ques 9 At the time of dissolution of a partnership firm, the book value of sundry assets transferred to Realisation Account was < 2,00,000. 50% of these sundry assets were taken by partner A at 20% discount, 40% of remaining assets were sold at a profit of 30% on cost. 5% of the balance was found obsolete and realised nothing. The remaining assets were taken over by a creditor in full settlement of his claim. Pass necessary journal entries for the above

Solution:

Cash/Bank A/c                       Dr 52,000

A's Capital A/c                         Dr 80,000

                              To Realisation A/c                     1,32,000

(Being Assets realised and some taken over by Partner A).

Ques 10 Under which major headings and subheadings will the following items be presented in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013 ?

(i) Interest accrued and due on debentures

(ii) Loose tools

(iii) Accrued interest on calls in advance

(iv) Interest due on calls in arrears

(v) Trademarks

(vi) Premium on redemption of debentures

(vii) Plant and Machinery

(viii) Patents

Solution:

Items

Heads

Sub-Heads

(i) Interest accrued and due

on debentures

Current liabilities

 

Other Current Liabilities

 

(ii) Loose Tools

Current Assets

Inventories

(iii) Accrued Interest on

Calls in advance

Current liabilities

 

Other Current Liabilities

 

(iv) Interest due on calls in

arrears

Current Assets

 

Other Current Assets

 

(v) Trademarks

Non Current Assets

Fixed Assets-Intangible

(vi) Premium on

redemption of debentures

Non Current Liabilities

Other Non Current Liabilities

 

(vii) Plant and Machinery

Non Current Assets

Fixed Assets-Tangible

(viii) Patents

Non Current Assets

Fixed Assets-Intangible

Important Questions & Answers for Class 12 Accountancy - Chapter 1

 Chapter-wise Important Questions & Answers on Class 12 Microeconomics and Macroeconomics

 
 
 

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