Q2) Give any three characteristics of partnership. (Marks 3)
Ans2) Three characteristics of partnership :
1) There must be an agreement entered into by one or more persons.
2) There must be lawful business.
3) Business must be carried on by all or any of them acting for all.
Q4) A, B and C were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. Their fixed capitals were Rs. 10,00,000, Rs. 2,00,000 and Rs. 3,00,0000 respectively. For the year 1996 interest on capital was credited to them @ 10% instead of 9% p.a.. Showing your wokring notes clearly pass the necessary adjusting journal entry.
Ans4) Working Notes :
Statement showing adjustment
Capitals…………………………….1000000 200000 300000
Interest credited @10%………….100000 20000 30000
Interest to be credited @ 9% 9000 18000 27000
Partners over -
Credited with 1000 2000 3000
Thus, the profit will increase
by 6000 divisible as 4 : 3 : 3 2400 1800 1800
Adjustment 1400(Cr) 200(Dr) 1200(Dr.)
Q5) X, Y and Z were partners in a firm sharing profits in 4 : 3 : 2 ratio. They had a joint life policy of Rs. 1,80,000 on which the annual premium paid was considered as an expense. On 1st January, 1996 X died. On that date there was a debit balance of Rs. 45,000 in their profit and loss account. Pass the necessary journal entries on X’s death. (Marks 4)