List of top Accountancy Questions on Fundamentals of Partnership

Manoj, Dilip and Rajinder were partners in a firm sharing profits and losses in the ratio of 7 : 3 : 5. Their fixed capitals were \(₹10,00,000\), \(₹8,00,000\) and \(₹6,00,000\), respectively. The partnership deed provided for interest on partners’ drawings @ 12% p.a. Which of the following accounts will be debited for charging interest on partners’ drawings ?

There are two statements Assertion (A) and Reason (R):
Assertion (A): Partnership is the result of an agreement between two or more persons to do business and share its profits and losses.
Reason (R): Partnership agreement should always be in written form.
Choose the correct alternative from the following:

The following account is debited for allowing interest on partners’ capital:

Sudha, a partner withdrew \(₹12,000\) on 31stOctober, 2023 for her personal use. Interest on drawings is charged @ 6% p.a. The interest on Sudha’s drawings for the year ended 31stMarch, 2024 will be :

Sun and Moon were partners in a firm sharing profits and losses equally. Their fixed capitals were \(₹5,00,000\) each. After the accounts for the year ended 31stMarch, 2024 were prepared, it was discovered that interest on capital @ 10% p.a. was not credited to the partners’ current accounts as provided in the partnership deed.
The rectifying adjustment entry for the same will be :

Particulars	Debit Amount (₹)	Credit Amount (₹)
(A) No Entry
(B) Sun’s Current A/c Dr.      To Moon’s Current A/c	50,000	50,000
(C) Moon’s Current A/c Dr.      To Sun’s Current A/c	50,000	50,000
(D) Sun’s Current A/c Dr. Moon’s Current A/c Dr.      To Profit and Loss Appropriation A/c	50,000 50,000	1,00,000

Sun and Moon were partners in a firm sharing profits and losses equally. Their fixed capitals were \(₹5,00,000\) each. After the accounts for the year ended 31stMarch, 2024 were prepared, it was discovered that interest on capital @ 10% p.a. was not credited to the partners’ current accounts as provided in the partnership deed.
The rectifying adjustment entry for the same will be :

Particulars	Debit Amount (₹)	Credit Amount (₹)
(A) No Entry
(B) Sun’s Current A/c Dr.      To Moon’s Current A/c	50,000	50,000
(C) Moon’s Current A/c Dr.      To Sun’s Current A/c	50,000	50,000
(D) Sun’s Current A/c Dr. Moon’s Current A/c Dr.      To Profit and Loss Appropriation A/c	50,000 50,000	1,00,000

Kabir and Lara were partners in a firm sharing profits and losses in the ratio of 5 : 3. Mark was admitted as a new partner for \( \frac{2}{5} \) share in the profits of the firm. Mark was to bring \( \frac{2}{5} \) of the combined capital of Kabir and Lara after all adjustments are carried out. The capitals of Kabir and Lara after all adjustments were ₹ 8,00,000 and ₹ 7,00,000 respectively. The capital brought by Mark was :

textit{Assertion (A)}: Partners' salary is debited to Profit and Loss Appropriation Account and not to Profit and Loss Account.
\textit{Reason (R)}: Partners' salary is an appropriation of profit, it is not a charge against profits.
Choose the correct option from the following:

‘The business of a partnership firm may be carried on by all the partners or any of them acting for all.’
The above statement highlights which of the following feature of partnership?

The partnership deed should be prepared as per the provisions of which of the following Acts ?

There are two statements Assertion (A) and Reason (R) :
Assertion (A) : The partners’ fixed capital accounts always show a credit balance, which shall remain the same (fixed) year after year unless there is any addition or withdrawal of capital.
Reason (R) : When capitals are fixed, then various items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in partners’ capital accounts.
Choose the correct option from the following :

Write any two characteristics of partnership.

Lata and Dheeraj were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31^st March, 2024, the firm was dissolved. After transferring various assets (other than cash) and third-party liabilities to Realisation Account, the following transactions took place:

• (i) A debtor whose debt of ₹ 40,000 had been written off as bad, paid ₹ 37,000 in full settlement.
• (ii) Land and building was sold for ₹ 9,00,000 through a broker who charged ₹ 50,000 as commission.
• (iii) Creditors amounting to ₹ 36,000 were paid ₹ 33,000 in full settlement.

Pass necessary journal entries for the above transactions in the books of Lata and Dheeraj.

Jay and Vijay were partners in a firm sharing profits and losses in the ratio of 7 : 3. Their respective fixed capitals were ₹9,00,000 and ₹7,00,000. The partnership deed provided for interest on capital @ 8% per annum. After preparing the accounts for the year ended 31\textsuperscript{st March, 2024, it was discovered that interest on capital was allowed @ 9% per annum. Showing your workings clearly, pass the necessary journal entry to rectify the error.}

Amar, Ali and Ajay were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 1^st April, 2024, Ajay decided to retire from the firm. On that day, the balance in his capital account after making necessary adjustments on account of reserves, revaluation of assets and reassessment of liabilities was ₹2,64,000. Amar and Ali agreed to pay him ₹3,00,000 in full settlement of his claim.

Calculate Ajay’s share of goodwill and pass the necessary journal entry for the same.