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Capital Adjustments in Partnership Accounts

The document discusses various accounting scenarios involving interest on capital, partner withdrawals, and goodwill calculations. It presents multiple-choice questions regarding adjustments for interest on capital, interest on drawings, and the capitalized value of a firm based on super profits. The scenarios involve specific financial figures and require calculations based on given rates and ratios.

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kvenkatagiriraju
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6 views1 page

Capital Adjustments in Partnership Accounts

The document discusses various accounting scenarios involving interest on capital, partner withdrawals, and goodwill calculations. It presents multiple-choice questions regarding adjustments for interest on capital, interest on drawings, and the capitalized value of a firm based on super profits. The scenarios involve specific financial figures and require calculations based on given rates and ratios.

Uploaded by

kvenkatagiriraju
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

(D) Rs.

2,200

14. A, B and C sharing profits in the ratio of 2: 2: 1 have fixed capitals of Rs. 3,00,000,
Rs. 2,00,000 and Rs. 1,00,000 respectively. After closing the accounts for the year
ending 31st March 2019 it was discovered that interest on capitals was provided @
12% instead of 10% p.a. In the adjusting entry:
(A) Cr. A Rs. 1,200; Dr. B Rs. 800 and Dr. C Rs. 400
(B) Dr. A Rs. 1,200; Cr. B Rs. 800 and Cr. C Rs. 400
(C) Cr. A Rs. 800; Cr. B Rs. 400 and Dr. C Rs. 1,200
(D) Dr. A Rs. 800; Dr. B Rs. 400 and Cr. C Rs. 1,200

15. A partner withdraws Rs.8,000 each on 1st April and 1st Oct. Interest on his
drawings @ 6% p.a. on 31st March will be:
(A) Rs. 480
(B) Rs.720

(C) Rs. 240

(D) Rs. 960

16 [ A&E] If Goodwill is Rs. 1,20,000, Average Profit is Rs. 60,000 Normal. Rate of
Return is10% on Capital Employed Rs. 4,80,000. Calculate capitalized value of
the firm:-
a. Rs. 6,00,000
b. Rs. 5,00,000
c. Rs. 4,00,000
d. Rs. 7,00,000

17 [ A ] A business has earned Super profit of Rs. 1,00,000during the last few years
and Normal rate of returns in 10% Calculate goodwill
a. Rs. 10,00,000
b. Rs. 54,000
C. 20,000
d. 36,000
18 (U)Rani and Shyam is partner in a firm. They are entitled to interest on their
capital but the net profit was not sufficient for paying his interest, then the net
profit will be disturbed among partner in

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