Chapter 1.
Introduction to Partnership and
Partnership Final Account
A. Select the most appropriate alternative from the following & rewrite the sentence.
1.
When
there is no partnership agreement between partners, the division of profits
takes place in __________ ratio.
a) Equal
b)
Capital
Ratio
c)
Initial
Contribution
d)
Experience
and tenure of partner
2.
To find out Net profit or Net Loss of the
business __________ account is prepared.
a) Trading
b) Capital
c) Current
d)
Profit & Loss
3. A __________ is an Intangible Asset.
a)
Goodwill
b)
Stock
c)
Cash
d)
Furniture
4. In the absence of an agreement, interest on loan
advance by the partner to the firm is allowed at the rate of __________.
a)
5%
b)
6%
c)
10%
d)
9%
5. Liability of partners in a partnership business is
__________.
a)
Limited
b)
Unlimited
c)
Limited
and Unlimited
d)
No
of the above
6. The Indian Partnership Act in force since __________.
a)
1932
b)
1881
c)
1956
d)
1984
7. Maximum number of Partners in a firm are __________
according to Company Act 2013.
a)
10
b)
25
c)
20
d)
50
B.
Write
the word/phrase/term, which can substitute the following sentence.
1.
Persons
who form the partnership firm. (Partners)
2.
Amount
of cash or goods withdrawn by partners from the business from time to time. (Drawing)
3.
An
association of two or more persons according to the Indian Partnership Act
1932. (Partnership Firm)
4.
Act
under which partnership firms are regulated. (Indian
partnership Act)
5.
Process
of entering the name of a partnership firm in the register of Registrar. (Registration)
6.
Partnership
agreement in the written form. (Partnership Deed)
7.
Under
this method capital, balances of partners remain constant. (Fixed Capital Method)
8.
Proportion
in which partners share profit. (Profit sharing
ratio)
9.
Such
capital method which only Capital Account is maintained for each partner. (Fluctuating capital method)
10. The account to which all adjustments are made when
capital is fixed. (Current Account)
11. Expenses which
are paid before they are due. (Prepaid Expenses)
12. The accounts that are prepared at the end of each
accounting year. (Final Account)
13. An asset which can be converted into cash easily. (Current Assets or Liquid assets)
14. Order in which
fixed assets are recorded first in the Balance sheet. (Order of liquidation)
15. The account in
which is selling expenses of the businesses are recorded. (Profit and Loss Account)
16. Debit balance of Trading Account. (Gross Loss)
17. Credit balance of Profit and Loss Account. (Net Profit)
C.
State
whether the following statement is True or False with reasons.
1.
Partnership
firm is Non-Trading Concern.
Ans. False.
The main aim of the partnership firm to earn maximum
profit. The partnership is a trading concern. It undertakes either
manufacturing or distributive activities with the sole aim of earning profit
and distributing that profit among the partners in a specific ratio.
2.
Profit
& Loss Account is a Real Account.
Ans. False.
Account of expenses, losses, gain, and incomes is
called Nominal account. Profit & Loss account contains all indirect
expenses and indirect incomes of the firm. Therefore, Profit & Loss Account
is a Nominal Account and not a real account.
3.
Carriage
inward is a carriage on purchase.
Ans. True.
Total transport expenses incurred on bringing the
goods from the market to the place of business is called the carriage. When
goods are purchased, the carriage is supposed to be borne by the firm. It is
known as carriage inward. It means carriage paid on purchase.
4.
Adjustments
are recorded in Partner’s Current Account in fixed capital Method.
Ans. True.
In fixed capital method, as name suggest capital
balance are generally remain fixed. Under this method, adjustments are not to be
recorded in capital account. All adjustments are recorded in a separate account
called Partner’s Current Account.
5.
Prepaid
expenses are treated as liabilities.
Ans. False.
Prepaid expenses are expenses which are paid before
they are due. Therefore, they are considered an asset of the business
organization.
6.
If
the partnership deed is silent, partners share profits and losses in proportion
to their capital.
Ans. False.
As per the provisions made under Indian Partnership
Act 1932, when partnership deed is silent about profit & Loss sharing ratio,
partners are supposed to share profit & losses in equal ratio, and not in
their capital ratio.
7.
Balance
Sheet is an Account.
Ans. False.
Financial statement showing all assets & liabilities
is called Balance sheet. It is not an account. It is a position statement which
shows various assets owned by the firm and various liabilities owned by it. On
the left-hand side all liabilities are listed and on the right-hand side all
assets are recorded.
8.
Wages
paid for the installation of Machinery is a Revenue expenditure.
Ans. False.
Wages paid for the installation of Machinery is a Capital
expenditure. Therefore, it is added to the cost of machinery. It is, generally,
paid once in a life of an asset. It is a long-term and capital expenditure.
9.
Income
received in advance is a liability.
Ans. True.
When income in respect to next year. It received in
the current year. It is known as income received in advance. So, in year firm
will not be able to receive that amount. Therefore, it is considered as a
liability for current year.
10. R.D.D. is created on creditors.
Ans. False.
R.D.D. is create on the value of debtors. Such provision
is made against profit & loss account. In future if loss is incurred on
account of bad debts, such amount is used to run the business.
11. Depreciation is not calculated on current assets.
Ans. True.
Current assets mean liquid assets having no fixed
tenure therefore depreciation can’t be calculated on it. Depreciation is calculated
and charged on fixed assets for their use, wear and tear etc.
12. Goodwill is intangible asset.
Ans. True.
Goodwill is a reputation of business computed in term
of money. Reputation can be experienced but can’t be seen or felt. Therefore,
goodwill is an intangible asset.
13. Indirect expenses are debited to the Trading Account.
Ans. False.
Indirect expenses mean expenses which are not directly
related with production of goods and services. Therefore, indirect expenses
cannot be debited to Trading Account. All indirect expenses are debited to
profit & loss account.
14. Bank loan is a
current liability.
Ans. False.
Loan usually taken for the period more than 1 year
from 5 years from the bank is called Bank Loan. It is long term loan. It is not
repaid within 1 year but pain in installments over number of years. It might be
paid in lumpsum at the expiry of term.
15. Net profit is a
debit balance of profit and loss account.
Ans. False.
In the Profit & Loss Account, when credit side
total i.e., total of incomes is more than the debit side total i.e., expenses
it is known as credit balance. When incomes exceed expenses there is profit. Therefore,
credit balance of Profit & Loss Account indicates net profit.
D.
Find
odd one.
1.
Wages,
Salary, Royalty, Import Duty.
Ans.
Salary
2.
Postage,
Stationery, Advertising, Purchases.
Ans.
Purchases
3.
Capital,
Bills Receivable, Reserve Fund, Bank overdraft.
Ans.
Bills Receivable
4.
Building,
Machinery, Furniture, Bills Payable.
Ans.
Bills Payable
5.
Discount
received, Dividend received, Interest received, Depreciation.
Ans.
Depreciation
E. Complete the sentences.
1.
Partners
share profit & losses in __________ ratio in the absence of partnership
deed.
Ans. Equal
2.
Registration
of partnership is __________ in India.
Ans. Optional
3.
Partnership
business must be __________.
Ans. Lawful
4.
Liabilities
of partners in Partnership firm is __________.
Ans. Unlimited
5.
The
balance of Drawings Account of a partner is transferred to his __________ under
the Fixed Capital Method.
Ans. Current
6.
The
interest on capital of a partner is debited to __________ account.
Ans. Profit & Loss
7.
Partners
are _________ liable for the debts of the firm.
Ans. Joint & Several
8.
Partnership
Deed is an __________ of Partnership.
Ans. Article
9.
The
withdrawal by partner for personal use from the firm is __________ to his account.
Ans. Debited
10. Commission
payable to partner is ___________ to the firm.
Ans. Liability / Outstanding
expenses
11. When partners
adopt Fixed Capital Method then they have to operate __________ Account.
Ans. Partner’s Current
12. If partner’s current account shows __________ balance
it is shown to the liability side of Balance sheet.
Ans. Credit
13. The expenses paid for trading purpose are known as
__________ expenses.
Ans. Trade.
14. Cash receipts which are recurring in nature are called
as __________ receipts.
Ans. Revenue.
15. Return outward are deducted from __________.
Ans. Purchases
16. Expenses which
are paid before due date are called as __________.
Ans. Repaid Expenses
17. Assets which are held in the business for a long
period are called __________.
Ans. Fixed Assets
18. Trading Account is prepared on the basis of is
__________ expenses.
Ans. Direct
19. When commission
is allowed to any partner, it is __________ of the business.
Ans. Expenditure
20. When goods are distributed as free samples, it is
treated as __________ of the business.
Ans. Advertisement expenses.
A.
Answer
in the sentence only:
1.
What
is Fluctuating Capital?
Ans.
When capital balances of the partners go on changing every year due to
transactions of partner with the firm. It is known as Fluctuating Capital.
2.
Why
is Partnership Deed necessary?
Ans. Partnership
deed is necessary to prevent disputes or misunderstandings among the partners
in future.
3.
If
the Partnership Deed is silent, in which ratio, the partners will share the
profit or loss?
Ans.
If the Partnership Deed is silent, partners will share profits and losses in
equal ratio.
4.
What
is the Fixed Capital Method?
Ans.
Fixed Capital Method is one in which capital balances of the partners remains
same at the end of every financial year unless any amount of additional capital
is introduced or part the capital withdrawn by the partner from the business.
5.
How
many partners are required to form a partnership firm?
Ans.
Minimum two persons are required to from a partnership firm.
6.
What
is Partnership Deed?
Ans. A
partnership deed is a written agreement duly stamped and signed document
containing the terms and condition of the partnership.
7.
What
are the objectives of the Partnership firm?
Ans.
To earn maximum profit is the main objective of the partnership firm.
8.
What
rate of interest is allowed on partner’s loan in the absence of an agreement?
Ans.
6% is the rate of interest to be allowed on partner’s loan in the absence of an
agreement.
9.
What
is the minimum number of partners in a partnership firm according to Indian
Partnership Act 1932?
Ans.
Minimum two persons are required number of partners in a partnership firm
according to Indian Partnership Act 1932.
10. What is liability of a partner?
Ans.
Liability of partner (except minor partner) is unlimited.
11. In the absence of Partnership Deed, what is the rate
of interest on loan advance by partner to the firm is allowed?
Ans.
In the absence of partnership deed 6% is the rate of interest loan advance by
partner to be the firm.
12. What do you mean by pre received income?
Ans.
Income which is received by the partnership firm before it is due is called
pre-received income.
13. What is the effect of the adjustment of provision for
discount on debtors in the final accounts of partnership?
Ans. The
effects of the adjustment of provision for discount on debtors in the final
accounts of partnership are as follow:
Debit
Profit & Loss A/c and deduct the amount of provision for discount on
debtors from the amount of debtors.
14. When is Partners Current Account is opened?
Ans. When
Fixed Capital Method is adopted by the firm, Partners Current Account is
opened.
15. As per which principle of accounting, closing stock is
valued at cost price or at market price whichever is less?
Ans. As
per Conservatism principle of accounting, closing stock is valued at cost price
or at market price whichever is less.
16. What is the provision of Indian Partnership Act with
regard to Interest on capital?
Ans. As
per provision of Indian Partnership Act, Interest on capital is not to be
allowed.
17. Why is Balance Sheet prepared?
Ans.
Balance sheet is prepared to know the financial position of the business in the
form of its assets and liabilities on a particular date.
18. Why wages paid for installation of machinery are not shown
in Trading Account?
Ans.
Wages paid for installation of machinery is a capital expenditure and it is not
to be recorded in Trading Account.
19. What do you mean by indirect income?
Ans. All
income other than direct income are called indirect income, [e.g., Interest
received on investment, Incomes like discount, commission, dividend. Rent etc.
received].
20. Why partners’ capital is treated as long term
liability of business?
Ans. Partner’s
Capital is not refunded during the existence of partnership firm unless partner
is retired or expired.
B.
Do
you agree/ disagree with the following statements.
1.
It
is compulsory to have a partnership agreement in writing. Disagree.
2.
Partnership
firm is a trading concern. Agree.
3.
An
interest on capital is an expenditure for the partnership firm. Agree.
4.
Partnership
in an association of two or more person. Agree.
5.
Partners
are entitled to salary or commission. Disagree.
6.
The
balance of Capital Account remains constant under Fixed Capital Method. Agree.
7.
The
Indian Partnership Act, came into existence in the year 1945. Disagree
8.
Profit
& Loss Account reflects the true financial position. Disagree
9.
Amount
borrowed by partner from his business will be debited to current account. Agree.
10. Sold but
underpitched goods must be part of valuation of closing stock. Disagree.
11. Carriage inward is a selling and distribution
overhead. Disagree.
12. Gross profit is an operation profit. Disagree.
13. All financial expenditures are debited to profit and
loss account. Agree.
14. Free distribution of goods is debited to trading
account. Disagree.
15. All financial expenditures are debited to profit
and loss account. Agree.
16. Free
distribution of goods is debited to trading account. Disagree.
C.
Calculate
the following:
1.
Undervaluation
of closing stock by 10%. Closing stock was Rs. 30,000 find out the value of
Closing stock.
Ans. Undervaluation
of closing stock by 10%
Book value
Revised value = --------------------------------- x 100
100 - % undervaluation
30,000
= ------------- x 100 = Rs. 33,333.
100 – 10
Value of closing stock = Rs. 33,333.
2.
Calculate
12.5% P.A. depreciation on Furniture:
(a) On Rs. 2,20,000 for 1 year
(b) On Rs. 10,000 for 6 months
Ans. Depreciation = Amount of
assets x Period x %
(a) Depreciation on furniture = 2,20,000 x 1 x 12.5/100 =
Rs. 27,500
Depreciation
on furniture for 1 year = Rs. 27,500
(b) Depreciation on
furniture = 10,000 x 6/12 x 12.5/100 = Rs. 625
Depreciation on
furniture for 6 months = Rs. 625
Check out all adjustment of Book-Keeping and Accountancy with help to attempt different types of practical questions which is given in Balbharti Maharashtra HSC Board Exam syllabus.
Super 30 Adjustment in Book-Keeping and Accountancy
Practical Problem
Q.1 Amitbhai and Narendrabhai are in Partnership Sharing Profits and Losses equally. From the following Trial Balance and Adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as on that date.|
Debit Balance |
Amount |
Credit
Balance |
Amount |
|
Plant and Machinery Factory
Building Sundry
Debtors Purchases Bad debts Sale Return 10% Govt. Bond (Purchased on
1st Oct, 2018) Import Duty Legal Charges Motive Power Warehouse
Rent Cash in Hand Cash at Bank Advertisement (for 2 years,
w.e.f 1st Jan 2019) Salaries Rent Drawing: Amitbhai Narendrabhai Furniture Bills
Receivable Freehold
Property |
|
Capital A/c: Amitbhai Narendrabhai Sales Bills Payable Discount Creditors R.D.D. Bank Loan Purchases
Return |
|
|
|
|
|
|
Adjustments :
|
Debit Balance |
Amount |
Credit
Balance |
Amount |
|
Stock
(1/04/2018) Building Carriage Factory Insurance Postage Bills
Receivable Sundry Debtors Return Inward Purchases Audit fees Loose Tool Manufacturing
Expenses Electricity
Charges General Expenses Export Duty Cash in Hand Bank Balance Conveyance Furniture Salaries Rent, Rate
& Taxes Drawing: Mitesh Mangesh |
25,000 48,500 1,780 2,700 1,600 13,700 52,200 1,600 68,900 1,800 32,000 1,820 2,600 3,400 1,000 75,000 29,000 4,100 64,000 2,000 3,700 1,200 2,200 |
Sundry Creditors Sales Capital A/c: Mitesh Mangesh Outstanding Salaries Bills Payable Return
Outward Current A/c: Mitesh Mangesh |
38,000 1,75,000 1,50,000 50,000 2,000 18,000 1,800 3,000 2,000 |
|
|
4,39,800 |
|
4,39,800 |
|
Debit Balance |
Amount |
Credit
Balance |
Amount |
|
Purchases Sundry
Debtors Sales Return Opening Stock Bad debts Land and
Building Furniture Discount Royalties Rent Salaries Wages Insurance Drawing: Reena Aarti Cash in Hand Cash at Bank |
35,500 40,000 1,000 18,100 500 25,000 20,000 1,000 700 1,900 3,000 800 1,500 2,000 1,000 11,500 2,000 |
Sales Sundry
Creditors Purchases
Return R.D.D. Discount Commission Capital A/c: Reena Aarti |
58,200 25,700 500 800 50 250 50,000 30,000 |
|
|
1,65,500 |
|
1,65,500 |
|
Debit Balance |
Amount |
Credit
Balance |
Amount |
|
Stock
(1/04/2018) Debtors Bills
Receivable Purchases Returns Carriage
Inward Carriage
Outward Motor Vehicles General
Expenses Export Duty Advertisement
(For 3 years
from 1/10/2018) Printing and
Stationery Drawing: Meera Madhav Leasehold
Premises Cash at Bank Furniture |
25,000 80,500 10,000 2,08,500 1,000 3,000 4,500 55,000 1,800 900 4,800 1,200 3,500 2,000 1,10,000 45,000 8,300 |
Bank
Overdraft Bills payable Creditors Sales Outstanding
Rent Unpaid Wages Capital A/c: Meera Madhav Purchases
Return |
5,000 12,500 68,000 3,25,000 2,000 1,500 75,000 75,000 1,000 |
|
|
5,65,000 |
|
5,65,000 |
|
Particulars |
Debit Balance |
Credit Balance |
|
Purchases & Sales Work’s Manager
Salary Capital A/C: Sucheta Gayatri Opening Stock Debtors and
Creditors Wages and
Salaries Bills Receivable Bills Payable Discount Motive Power Custom Duty Interest Unproductive
wages Audit fees Rent Conveyance Goodwill Copyright Building Partner’s
(Sucheta) Loan Investment Cash at Bank |
65,000 2,300
18,700 47,500 4,000 22,000
1,350 1,500
3,000 2,500 1,800 2,000 25,000 20,000 88,000
40,000 26,000 |
1,85,500
75,000 40,000
27,300 400
1,300
6,150
|
|
|
3,70,650 |
3,70,650 |
Trial
Balance as on 31st March, 2019
|
Debit Balance |
Amount |
Credit Balance |
Amount |
|
Stock
(1/04/2018) Patents Sundry Debtors Stock of
Stationery Trade Mark Bills Receivable Electricity
charges Wages Heating and Lighting Trade Expenses Sales Return Land & Building Furniture Cash at Bank Investment Drawing; Archana Prerana Bad debts Purchases |
8,560 2,000 18,500 3,000 2,000 6,300 1,450 950 1,000 850 400 22,000 13,000 5,000 7,500
1,200 900 200 23,700 |
Capital A/c: Archana Prerana Others Loan Reserve Fund Sundry creditors Bills Payable Purchases Return R.D.D. Sales Interest |
40,000 20,000 3,000 1,000 17,500 5,000 1,000 500 30,200 310 |
|
|
1,18,510 |
|
1,18,510 |
Adjustments :
1) Stock on 31st March 2019 is valued at Cost Price Rs.
12,000 and Market Price Rs. 17,000.
2) Our customer Mr. Shekhar failed to pay his dues of Rs.
800.
3) 1/8th of Patents is to be written off.
4) A part of Furniture Rs. 5,000 is purchased on 1st
Oct 2018.
5) Depreciation on Land & Building 10% and on
Furniture 5%.
6) Outstanding Expenses Wages Rs. 300 and Electricity
Charges Rs. 200.
7) Allow Interest on Capital 3%.
(Ans : G.P. Rs. 8,290, N.P. Rs. 825 Balance Sheet Total Rs. 87,525) [ Solution ]
Q.7 Satish and Pramod are Partners. Prepare Trading Account and Profit and Loss Account for the year 31st March, 2019. You have to find out Gross Profit and Net Profit only.
Trial
Balance as on 31st March, 2019
|
Debit Balance |
Amount |
Credit Balance |
Amount |
|
Stock
(1/04/2018) Purchases Wages Insurance Unproductive Wages Warehouse Rent Carriage Outward Sales Return Export Duty Custom Duty Sundry Debtors Investment Factory Rent Postage and
Telegram |
8,700 18,300 1,000 800 1,400 600 1,200 600 1,400 800 40,000 15,700 1,600 400
|
Sales Dividend Purchases Return Sundry Creditors 10% Bank Loan (w.e.f.
1/7/2018) Other Receipts |
68,000 2,000 500 13,000 8,000
1,000 |
|
|
92,500 |
|
92,500 |
Adjustments :
1) The Closing Stock is valued at Rs. 15,400.
2) Outstanding Wages Rs. 500.
3) Create provision for Bad debts Rs. 800 and maintain
R.D.D 3% on Sundry Debtors.
4) Goods of Rs. 1,800 distributed as a free sample.
5) Goods of Rs. 2,000 were sold and delivered on 31st March 2019 but no entry is passed in the Books of Account.
(Ans : G.P. Rs. 56,200, N.P. Rs. 48,964 ) [ Solution ]
Q.8 Nana and Nani are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give effects of Adjustments in Profit & Loss A/c and Balance Sheet with the help of following information.
Trial Balance as
on 31st March, 2019
|
Debit Balance |
Amount |
Credit Balance |
Amount |
|
Insurance Land and
Building (Additional Rs. 20,000 w.e.f. 1stJuly, 2018 ) Salaries Export Duty Interests Furniture Debtors |
15,000 50,000 5,000 2,500 1,000 40,000 26,000 |
Capital A/c: Nana Nani 10% Bank Loan
taken on 1st Oct. 2018 Interest Bills payable |
50,000 50,000 30,000 1,500 8,000 |
|
|
1,39,500 |
|
1,39,500 |
1) Gross profit amounted to Rs. 34,500.
2) Insurance Paid for 15 months w.e.f. 1.4.2018.
3) Depreciate Land and Building at 10% p.a. and Furniture at
5% p.a.
4) Write off Rs. 1,000 for Bad Debts and maintain R.D.D at
5% on Sundry Debtors.
5) Closing Stock is valued at Rs. 34,500.
(Ans : N.P. Rs. 5,250 Balance Sheet Total Rs. 1,44,750) [ Solution ]
Trial Balance as
on 31st March, 2019
|
Debit Balance |
Amount |
Credit Balance |
Amount |
|
Land and
Building Furniture Machinery (Purchases on
1/7/2018) Goodwill Wages Current A/c:
Moon 8% Debenture (Purchases on
1/10/2018) Provident
Fund Investment Stock of
Postal stamps |
40,000 18,000 40,000 2,000 2,000 4,000 8,000 3,500 500 |
Capital A/c: Sun Moon Current A/c: Sun Sundry
Creditors Bank overdraft Reserve fund Provident fund |
33,500 33,500 6,000 25,000 10,000 5,000 5,000 |
|
|
1,18,000 |
|
1,18,000 |
1) Partners are entitled to get salary Rs. 6,000 p.a. in
addition to their profit & loss sharing.
2) Depreciation on Land & Building, Furniture &
Machinery @ 10%, 5% and 3% respectively.
3) Interest on Capital 5% p.a.
4) Closing Stock Rs. 60,743.
5) Wages included Rs. 1,000 as advance given to workers.
6) Interest due but not paid Rs. 800.
7) Total Net Profit amounted to Rs. 38,113.
You are required to prepare Balance Sheet and Partners
Current A/c only.
(Ans : Balance Sheet Total Rs. 1,68,263, Current A/c Balance Sun Rs. 32,731, Moon Rs. 22,732)
Kshipra and Manisha are Partners sharing Profit and Losses
in their Capital Ratio. You are required to prepare Trading Account and Profit
and Loss Account for the year ended 31st March, 2019 and Balance Sheet as on
that date.
Trial Balance as
on 31st March, 2019
|
Debit Balance |
Amount |
Credit Balance |
Amount |
|
Sundry Debtors Purchases Furniture Plant &
machinery Wages Salaries Discount Bills Receivable Carriage outward Postage Sale Return Cash in hand Cash at Bank Insurance Opening stock Trade
Expenses Warehouse
Rent Advertisement Building |
28,000 55,000 38,500 60,000 800 3,500 800 14,400 1,000 500 500 4,000 47,000 2,000 17,800 1,500 2,500 1,000 20,000 |
Sales Rent Sundry
Creditors Purchase Return Discount Bills payable Capital A/c: Kshipra Manisha Current A/c: Kshipra Manisha |
1,20,000 1,800 38,500 1,000 500 9,000 90,000 30,000 5,000 3,000 |
|
|
2,98,800 |
|
2,98,800 |
1) Stock on 31st March 2019 was at Rs. 37,000.
2) Sales includes, sale of machinery of Rs. 2,000, which is
sold on 1st April 2018.
3) Depreciation on fixed assets @ 5%.
4) Each Partners is entitled to get Commission at 1% of
Gross Profit and Interest on Capital 5% p.a.
5) Outstanding Expenses Wages Rs. 200 & Salaries Rs. 500.
6) Create provision for doubtful debts @ 3% on Sundry
Debtors.
(Ans : G.P. Rs. 81,700, N.P. ` 56,401 Balance Sheet Total
Rs. 2,40,235) [ Solution ]
Click Here to Download Practice Question Paper & Get ready for Board Exam:
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HSC Commerce 12th Board Exam- Maharashtra State Board Textbook Solutions
Chapter 2 - Not for Profit Concerns
Chapter 4 - Retirement of Partner
Chapter 5 - Death of Partner
Chapter 6 - Dissolution of Partner
Chapter 7 Bill of Exchanges
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