Question : A, B and C are chartered Accountants form a Partnership Firm Profit Being divisible in the Ratio of 3: 2: 1 subject to the following:
1) C's share of profits is guaranteed to be not less than 15,000 per annum.
2) B gives a guarantee to the effect that the gross fee earned by him for the firm shall be equal to his average gross fee of the preceding five years when he was carrying a profession alone. (which average workout at Rs 25,000 )
3) The profit for the first year of the partnership is Rs 75,000. The gross fee earned by B for the firm Rs 16,000.
Question:
B's capital account will be debited by _____ and _____A/c will be credited.

Option 1: Rs 25,000 and credited to the profit and loss Appropriation Account

Option 2: Rs 9,000 and credited to the profit and loss Appropriation Account

Option 3: Rs 9,000 and credited to the profit and loss Account

Option 4: None of the above

 

Question : A, B and C are chartered Accountants form a Partnership Firm Profit Being divisible in the Ratio of 3: 2: 1 subject to the following:
1) C's share of profits is guaranteed to be not less than 15,000 per annum.
2) B gives a guarantee to the effect that the gross fee earned by him for the firm shall be equal to his average gross fee of the preceding five years when he was carrying a profession alone. (which average workout at Rs 25,000 )
3) The profit for the first year of the partnership is Rs 75,000. The gross fee earned by B for the firm Rs 16,000.
Question:
B's capital account will be debited by _____ and _____A/c will be credited.

Option 1: Rs 25,000 and credited to the profit and loss Appropriation Account

Option 2: Rs 9,000 and credited to the profit and loss Appropriation Account

Option 3: Rs 9,000 and credited to the profit and loss Account

Option 4: None of the above

Question : Arun and Ravi are partners sharing profits and losses in the ratio of 7:3 with capital of Rs 4,00,000 and Rs 3,00,000 respectively. According to the partnership deed interest on capital is to be provided @8% p.a. and is to be treated as a charge. Profit for the year is Rs 40,000. Choose the correct option:

Option 1: Arun will be credited by Rs. 32,000 and Ravi will be credited by Rs. 24,000 and debited profit and loss appropriation account.

Option 2: Arun will be credited by Rs. 32,000 and Ravi will be credited by Rs. 24,000. Debited
profit and loss account.

Option 3: Arun will be credited by Rs. 11,200 and Ravi will be credited by Rs. 4800. Debited profit and loss appropriation account.

Option 4: Arun will be credited by Rs. 10,400 and Ravi will be credited by Rs. 9,600 and debited profit and loss account.

Question : Arun and Ravi are partners sharing profits and losses in the ratio of 7:3 with capital of Rs 4,00,000 and Rs 3,00,000 respectively. According to the partnership deed interest on capital is to be provided @8% p.a. and is to be treated as a charge. Profit for the year is Rs 40,000. Choose the correct option:

Option 1: Arun will be credited by Rs. 32,000 and Ravi will be credited by Rs. 24,000 and debited profit and loss appropriation account.

Option 2: Arun will be credited by Rs. 32,000 and Ravi will be credited by Rs. 24,000. Debited
profit and loss account.

Option 3: Arun will be credited by Rs. 11,200 and Ravi will be credited by Rs. 4800. Debited profit and loss appropriation account.

Option 4: Arun will be credited by Rs. 10,400 and Ravi will be credited by Rs. 9,600 and debited profit and loss account.

Question : Kumar, Verma and Naresh were partners in a firm sharing profit & loss in the ratio of 3: 2: 2. On 23rd January 2015 Verma died. Verma's share of profit till the date of his death was calculated at Rs.2,350.

Option 1: Debited profit and loss suspense account By Rs 2,350

Option 2: Credited profit and loss account by Rs 2,350

Option 3: Debited profit and loss appropriation account Rs 2,350

Option 4: Credited profit an d loss appropriation account Rs 2,350

Question : Kumar, Verma and Naresh were partners in a firm sharing profit & loss in the ratio of 3: 2: 2. On 23rd January 2015 Verma died. Verma's share of profit till the date of his death was calculated at Rs.2,350.

Option 1: Debited profit and loss suspense account By Rs 2,350

Option 2: Credited profit and loss account by Rs 2,350

Option 3: Debited profit and loss appropriation account Rs 2,350

Option 4: Credited profit an d loss appropriation account Rs 2,350