CBSE Class 12 Accountancy Partnership Fundamentals VBQs
1. A,B and C are partners sharing profits in the ratio 3:2:1 and contribute capital ₹1,00,000; ₹ 80,000 and 60,000 respectively. Profit before adjustments is 84,000. Interest on capital is to be provided @ 10% p.a. Since C has to take care of his physically challenged brother, his share of profit should not be less than ₹15,000. A and B have agreed to bear the deficiency.
Value Based
What values are reflected on the part of A and B that they are ready to sacrifice their share to meet the deficiency of guaranteed profit?
2. X,Y and Z are partners with ₹ 72,000, 80,000 and ₹ 1,00,000 as their capitals respectively. The profit for the year ending March 31,2012 was ₹7,20,000. Before distributing profits they donated 10% of profits to a ‘Non-Govt. organisation’ as charity for welfare of educationally backward section of the society. Out of the remaining profit, ₹4,00,000 is divisible as 5:3:2 ratio and the remaining is to be divided amongst them equally.
Identify the value followed by the partnership firm of X,Y and Z. Prepare Profit and Loss Appropriation Account and Partner’s Capital Account.
3. Aakash and Bhola entered into partnership on January ₹1,2012 contributing ₹1,20,000 and ₹1,60,000 as capitals respectively. Their partnership firm started the business of manufacturing shoes. They decided to donate 30% of the shoes produced for school going children. They share profits in the ratio of 7:3. The profits for the year were ₹96,000. Prepare Profit and Loss Appropriation Account and the Partner’s Capital Accounts. Also identify the value involved in this question.
4. Renu and Reshma shared profits as 7:3. Renu want to give admission to her friend Rehana as a new partner. Reshma agrees with this decision of Renu. Rehana is a physically challenged lady and admitted with a ¼ th share in profits. Renu and Reshma gave her a guarantee that her share of profit will never be less than ₹1,20,000 p.a., the profits for the last two years ended March 31, 2011 and March 31, 2012 were ₹1,60,000 and ₹2,40,000 respectively. Identify the human value involved in this case and Profit and Loss Appropriation Account for the two years.
5. Ramesh and Gurmeet are two friends belonging to Hindu and Sikh religion respectively. They started a business of wire manufacturing in the form of a partnership firm. They know that the factory of wire manufacturing pollutes the environment. Therefore there are two options available before them. First option is that the factory can be opened in rural area where local residents are poor and illiterate. Second option is that an advanced pollution control plant can be installed in their factory to control the pollution. They decided to choose the second option which involves an additional cost of ₹2,00,000. To arrange this amount, they admitted their rich friend John as a new partner for equal share in the future profits. John brought ₹2,50,000 as his share of capital. Ramesh and Gurmeet gave him a guarantee that his share of profit will not be less than ₹60,000 p.a. At the end of first year the firm earns a profit of ₹1,50,000.
Mention the value involved in this question. Write the effects of choosing option available before Ramesh and Gurmeet. Prepare Profit and Loss Appropriation Account for the first year.
6. A,B and C are in a partnership. A is appointed for carrying on the business of the firm by the other partners. A has decided to purchase the goods from a firm in which his wife and his son are partners at a double rate than the prevailing market rate without disclosing this fact to others partners of the firm. State which values have been violated by A by not disclosing this information to B and C.
7. A,B and C are partners in a firm. C used firm’s money to buy shares without disclosing it other partners. Which value C is violating and what will be the treatment of profit earned by C?
