Class 12 Accountancy - Chapter Accounting for Partnership : Basic Concepts NCERT Solutions | Priya and Kajal are partners in a firm,

If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?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

Reena and Raman are partners with capitals of Rs. 3,00,000 and Rs. 1,00,000 respectively. The profit for the year ended March 31, 2017 was Rs. 1,80,000, before paying rent for her personal building to be used as godown for firm to Reena payable at Rs. 5000 per month. Interest on capital is to be allowed at 6% p.a. Raman was entitled to a salary of Rs. 30,000 p.a. The drawings of partners were Rs. 30,000 and 20,000. The interest on drawings to be charged to Reena was Rs. 1,000 and to Raman, Rs. 500.

Assuming that Reena and Raman are equal partners. State their share of profit after necessary appropriations.

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.

What is meant by partnership? Explain its chief characteristics? Explain.

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?

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

State the order of settlement of accounts on dissolution.

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 a Realisation Account?

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

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

What is sacrificing ratio? Why is it calculated?

On what occasions sacrificing ratio is used?

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

 Why there is need for the revaluation of assets and liabilities on the admission of a partner?