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Vidit and Seema were partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals were ₹ 1,20,000 and ₹ 2,40,000 respectively. They were entitled to interest on capital @ 10%. The firm earned profit of ₹ 18,000 during the year. The interest on Vidit’s capital will be

Ans – d) Explanation:- Vidit’s Interest on capital = 1,20,000 * 10% = ₹ 12,000 Seema’s Interest on capital = 2,40,000 * 10% = ₹ 24,000 Total interest of both the partners = 12,000 + 24,000 = ₹ 36,000 As…

Anurag Pathak
April 4, 2023

Sohan and Mohan are partners sharing profits and losses in the ratio of 2:3 with capitals of ₹ 5,00,00 and ₹ 6,00,000 respectively. On 1st January 2022, Sohan and Mohan granted loans of ₹ 20,000 and ₹ 10,000 respectively to the firm.

Ans – d) Explanation

Anurag Pathak
April 4, 2023

X, Y, and Z are partners in a firm sharing profits and losses in the ratio of 6:4:1. X guaranteed a profit of ₹ 15,000 to Z. The net profit for the year ending 31st March 2019 was ₹ 99,000. X’s Share in the profit of the firm will be

Ans – c) Explanation:- Z’s Share in Profit = 99000 * 1/11 = ₹ 9,000 Deficiency of Z borne by X = 15000 – 9000 = ₹ 6,000 X’s Share in profit = 99000 * 6/11 = ₹ 54,000 X’s…

Anurag Pathak
April 4, 2023

Which of the following will not be shown in the debit of the Profit and Loss Appropriation Account?

Ans – c) Interest on Drawings as revenue (income) to the firm is recorded at the credit side of the Profit and Loss Appropriation Account.

Anurag Pathak
April 4, 2023

Which of the following items is not dealt through the Profit and Loss Appropriation Account?

Ans – a) Explanation:- interest on Partner’s Loan is considered as a charge against profit. Thus it is recorded to the debit side of the Profit and Loss Account.

Anurag Pathak
April 4, 2023

When a guarantee is given to a partner by some partners, deficiency on such guarantee is borne by

Ans – c) Explanation:- When a guarantee is given by one partner or a few partners to the other partners. The Deficiency is borne by only those partners who gave the guarantee.

Anurag Pathak
April 4, 2023

Mohan, a partner, withdraws ₹ 20,000 on 1st April 2022 and ₹ 40,000 on 1st October 2022. Interest on Drawings @ 6% p.a. on 31st March 2023 will be

Ans – a) Explanation:-

Anurag Pathak
April 4, 2023

Interest on the capital of a partner is a

Ans – c) Explanation:- interest on the partner’s capital is only an expense to the firm. Just an expense is neither a loss nor a profit to the firm. If the Revenue of the firm is greater than the total…

Anurag Pathak
April 4, 2023

Ramesh, Rahul and Raman are partners. Raman withdrew ₹ 20,000 per month in the middle of the month. Interest on drawings charged for the year was ₹ 7200. The rate of interest on drawings is

Ans – d) Explanation:- in the absence of a partnership deed, the Indian Partnership Act 1932 Applies. The interest on the partner’s loan to the firm is charged @ 6% p.a.

Anurag Pathak
April 4, 2023

Mohan, Mayank, and Madan are partners, their Partnership Deed provides for interest on drawings at 8% p.a., Mayank withdrew a fixed amount in the middle of every month and his interest on drawings amounted to ₹ 24,000 at the end of the year. What was the amount of his monthly drawings?

Ans – a) Explanation:-

Anurag Pathak
April 4, 2023