PARTNERSHIP ACCOUNTS QUESTIONS
Q1. Explain the various methods of treatment of good will on admission of a partner.
Q2. D retired from a firm on March 31, 2001. The amount due to him was Rs. 40,400. The terms of retirement provided for payment of Rs. 10,400 immediately and there after the debt was to be extinguished in three years by payment of Rs. 10,000 together with interest @ 10% on the outstanding balance. Show that Loan Account.
Q3. The Balance Sheet of a firm on 31st March 2006 was as follows:
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
X : capital
|
5,000
|
Furniture
|
8,000
|
|
Y : capital
|
4,000
|
Stock
|
2,000
|
|
Z : capital
|
3,000
|
Debtors
|
1,000
|
|
Sundry creditors
|
2,000
|
Cash at Bank
|
3,000
|
|
|
14,000
|
|
14,000
|
The partnership was dissolved as on the above date. The sundry creditors were paid at a discount of 5%. X agreed to take over the furniture at Rs. 9,000; Y the stock at Rs. 1,500 and Z the debtors at Rs. 600/-the expenses of realisation came to Rs. 110. Close the books of the firm.
Q4. The position of A, B and C on 31st March 2006 was as follows :
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Sundry Creditors
|
6,300
|
Cash
|
2,500
|
|
Profit and Loss A/c
|
7,000
|
Sundry Assets
|
17,000
|
|
A : Loan
|
4,000
|
C : Capital a/c
|
7,800
|
|
B : Capital
|
6,400
|
|
|
|
B : Capital
|
3,600
|
|
|
|
|
27,300
|
|
27,300
|
Profit and losses are shared - A 18/35, B 7/35 and C 10/35. The firm is dissolved on the above date. Sundry Assets realise Rs. 14,000. Sundry Creditors are paid Rs. 6,000 in full settlement. Realisation expenses amount to Rs. 800. C is insolvent.
Assume capitals are not fixed, close the books of the firm under Garner Vs Murray decision.
Q5. X, Y and Z are partner sharing profits and losses in the ratio of 5:3:2 respectively. The following in their Balance Sheet on 31st March 2006 on which date they dissolve partnership.
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Creditors
|
40,000
|
Buildings
|
40,000
|
|
X : Loan
|
10,000
|
Machinery
|
30,000
|
|
Capital Accounts:
|
|
Furniture
|
13,700
|
|
X 50,000
|
|
Stock
|
40,800
|
|
Y 15,000
|
1,10,000
|
Debtors
|
35,500
|
|
Z 45,000
|
1,60,000
|
|
1,60,000
|
It was agreed to repay the amounts due to partners as and when the assets were realised viz :
|
|
Rs.
|
|
May 1 2006
|
30,000
|
|
July 1 2006
|
73,000
|
|
September 1 2006
|
47,000
|
Prepare a statement showing how the cash distribution should be made under Maximum Loss Method.