Class 12 Accountancy - Chapter Accounting for Partnership : Basic Concepts NCERT Solutions | Reena and Raman are partners with capita

If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?

List the items which may be debited or credited in capital accounts of the partners when:

(i) Capitals are fixed.
(ii) Capital are fluctuating.

Why is Profit and Loss Adjustment Account prepared? Explain.

 Why it is considered desirable to make the  partnership agreement in writing.

Give two circumstances under which the fixed capitals of partners may change.

In the absence of Partnership deed, specify the rules relating to the following :

(i) Sharing of profits and losses.
(ii) Interest on partner’s capital.
(iii) Interest on Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to a partner.

Define Partnership Deed.

Priya and Kajal are partners in a firm, sharing profits and losses in the ratio of 5:3. The balance in their fixed capital accounts, on April 1, 2016 were: Priya, Rs. 6,00,000 and Kajal, Rs. 8,00,000. The profit of the firm for the year ended March 31, 2017 was Rs, 1,26,000. Calculate their shares of profits: (a) when there is no agreement in respect of interest on capital, and (b) when there is an agreement that the interest on capital will be allowed @ 12% p.a.

Mohan and Shyam are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:

(i) Mohan is an active partner. He wants a salary of Rs. 10,000 per year;
(ii) Shyam had advanced a loan to the firm. He claims interest @ 10% per annum;
(iii) Mohan has contributed Rs. 20,000 and Shyam Rs. 50,000 as capital. Mohan wants equal share in profits.
(iv) Shyam wants interest on capital to be credited @ 6% per annum.

Rani and Suman are in partnership with fixed capitals of Rs, 80,000 and Rs.60,000, respectively. During the year 2015-16, Rani withdrew Rs. 10,000 from her capital and Suman Rs. 15,000. Profits before charging interest on capital was Rs. 50,000. Rani and Suman shared profits in the ratio of 3:2. Calculate the amounts of interest on their capitals @ 12% p.a. for the year ended March 31, 2016.

State the difference between dissolution of partnership and dissolution of partnership firm.

Identify various matters that need adjustments at the time of admission of a new partner.

What are the different ways in which a partner can retire from the firm?

State the accounting treatment at the time of dissolution of a firm for:
i. Unrecorded assets ii. Unrecorded liabilities

Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?

Write the various matters that need adjustments at the time of retirement of partner/partners.

On dissolution, how will you deal with partner’s loan if it appears on the
(a) assets side of the balance sheet, (b) liabilities side of balance sheet.

What is sacrificing ratio? Why is it calculated?

Distinguish between firm’s debts and partner’s private debts.

On what occasions sacrificing ratio is used?

On what account realisation account differs from revaluation account.

State the difference between dissolution of partnership and dissolution of partnership firm.

How deficiency of crditors is paid off at the time of dissolution of firm.

Distinguish between firm’s debts and partner’s private debts.

On dissolution, how will you deal with partner’s loan if it appears on the
(a) assets side of the balance sheet, (b) liabilities side of balance sheet.

Reproduce the format of Realisation Account.

Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?

What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

What are the different ways in which a partner can retire from the firm?

What is Capital Fund? How is it calculated?