**Ultimate Book of Accountancy Class 12 Part A Solutions – Basics of Partnership**

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### Practical Problems

**Solution 1:**

**Solution 2:**

**Solution 3:**

**Solution 4:**

**Solution 5:**

**Solution 6:**

**Solution 7:**

**Solution 8:**

**Solution 9:**

**Solution 10:**

**Case 1:**

**Case 2:**

**Case 3:**

**Solution 11:**

**Working Note:**

Profit = 20,100 – 4,500 = 15,600

Out of which 12,000 divided as 50%, 30% and 20% and remaining 3,600 in equal ratio.

**Solution 12:**

**Solution 13:**

**Solution 14:**

**Solution 15:**

**Case 1:** Claim of B is not valid because partnership deed is silent on interest on partner’s loan. So he is entitled only for 6% p.a.

**Case 2:** Profit sharing ratio will be equal.

**Solution 16:**

(a) No salary will be given to any partner.

(b) No interest on capital to any partner. Only X will get 6% p.a. interest on loan.

(c) New partner can be admitted with the consent of old partners. In this case Y is objective, so X cannot admit his son as a partner.

**Solution 17:**

(a) No salary will be paid.

(b) No interest on capital will be given to any partner.

(c) Interest on partner’s loan will be 6% p.a.

(d) Profit sharing ratio will be equal

(e) No interest on drawings will be charged.

**Solution 18:**

**Solution 19:**

Interest on M’s Loan (for 9 months) = 8,000 x 6/100 x 9/12 = 360

**Solution 20:**

Interest on A’s Loan = 15,000 x 6/100 x 6/12 = 450

Interest on B’s Loan = 15,000 x 6/100 x 6/12 = 450

**Solution 21:**

**Solution 22:**

**Solution 23:**

**Solution 24:**

**Solution 25:**

**Solution 26:**

Interest on capital to B

Opening Capital = 8,000 + 3,000 (Drawings) – 1,000 (Profit)

Interest = 10,000 x 5/100 = 500

Note: Total profit was Rs.6,000 during the year out of which Rs.4,000 was kept aside and Rs.2,000 distributed by the partners in equally i.e. 1,000 each.

**Solution 27:**

**Solution 28:**

**Solution 29:**

Interest on John’s Capital = 2,00,000 x 5/100 = 10,000

Interest on Smith’s Capital = 2,00,000 x 5/100 = 10,000

**Solution 30:**

**Solution 31:**

**Case (a):**

Interest to Hero Rs.6,000 and Zero Rs.3,000 = 6,000 + 3,000 = 9,000 but profit is only 7,500

Ratio of appropriations = 6,000 : 3,000 = 2 : 1

Now : 7,500 x 2/3 = 5,000 and 7,500 x 1/3 = 2,500

**Case (b):**

**Solution 32:**

(a) Partnership deed is silent as to payment to interest on capital so no interest on capital will be calculated and profit will be shared by the partners directly in their profit sharing ratio i.e. 3 : 2.

(d) No interest on capital, because interest on capital is an appropriation and in case of loss no appropriation to the partners. Loss will be shared by the partners in their profit sharing ratio 3:2.

**Solution 33:**

**Solution 34:**

**Solution 35:**

English = 1,00,000 x 6/100 x 7.5/12 = 3,750

Hindi = 1,00,000 x 6/100 x 4.5/12 = 2,250

**Solution 36:**

A = 72,000 x 15/100 x 6.5/12 = 5,850

B = 72,000 x 15/100 x 5.5/12 = 4,950

C = 72,000 x 15/100 x 6/12 = 5,400

**Solution 37:**

Hina = 60,000 x 6/100 x 6.5/12 = 1,950

Rahim = 60,000 x 6/100 x 5.5/12 = 1,650

**Solution 38:**

Keyboard = 1,80,000 x 10/100 x 5/12 = 7,500

Mouse = 1,80,000 x 10/100 x 4/12 = 6,000

Printer = 1,80,000 x 10/100 x 4.5/12 = 6,750

**Solution 39:**

A = 90,000 x 8/100 x 3.5/12 = 2,100

B = 90,000 x 8/100 x 2.5/12 = 1,500

C = 90,000 x 8/100 x 3/12 = 1,800

**Solution 40:**

(i) 45,000 x 10/100 x 6/12 = 2,250

(ii) 45,000 x 10/100 x 6/12 = 2,250

(iii) 8,000 x 10/100 x 6/12 = 400

**Solution 41:**

Tom = 24,000 x 10/100 = 2,400

Jerry = 16,000 x 10/100 = 1,600

**Solution 42:**

(i) 60,000 x 10/100 x 6/12 = 3,000

(ii) 50,000 x 10/100 = 5,000

(iii) 20,000 x 10/100 = 2,000

10,00 x 10/100 = 1,000

Total = 2,000 + 1,000 = 3,000

**Solution 43:**

(a) 12,000 x 10/100 x 6.5/12 = 650

(b) 12,000 x 10/100 x 5.5/12 = 550

(c) 12,000 x 10/100 x 6/12 = 600

(d) 24,000 x 10/100 x 6/12 = 1,200

(e) 12,000 x 10/100 x 6/12 = 600

(f) 12,000 x 10/100 x 7.5/12 = 750

(g) 12,000 x 10/100 x 4.5/12 = 450

(h) 12,000 x 10/100 x 6/12 = 600

(i) 36,000 x 10/100 x 5/12 = 1,500

(j) 72,000 x 10/100 x 3.5/12 = 2,100

**Solution 44:**

Interest on A’s Loan = 60,000 x 3/5 = 36,000

36,000 x 6/100 x 6/12 = 1,080

Interest on B’s Loan = 60,000 x 2/5 = 24,000

24,000 x 6/100 x 6/12 = 720

**Solution 45:**

**Case 1:**

**Case 2:**

**Case 3:**

**Solution 46:**

**Solution 47:**

**Solution 48:**

**Solution 49:**

**Solution 50:**

Z’s Capital A/c Dr. 135

To X’s Capital A/c 120

To Y’s Capital A/c 15

**Solution 51:**

**Solution 52:**

**Solution 53:**

**Solution 54:**

Y’s Capital A/c Dr. 225

To X’s Capital A/c 150

To Z’s Capital A/c 75

**Solution 55:**

**Solution 56:**

**Solution 57:**

Note for teachers: Partners have directly divided profit Rs.1,80,000 in ratio of 3:2:1 i.e. A Rs.90,000; B Rs.60,000 and C Rs.30,000.

But they should have prepared P/L Appropriation Account to provide salary, commission and guaranteed amount etc.

Note : Deficiency of Rs.8,125 borne by B and C in 3:2 ratio.

**Solution 58:**

**Solution 59:**

A’s Capital A/c Dr. 121

To B’s Capital A/c 121

**Solution 60:**

Anil’s Capital A/c Dr. 1,100

To Mohan’s Capital A/c 1,100

**Solution 61:**

S’s Current A/c Dr. 10,112

To R’s Current A/c 10,112

Note : Interest on drawings should not be deducted because this is already taken benefit.

**Solution 62:**

B’s Current A/c Dr. 5,600

To A’s Current A/c 5,600

**Solution 63:**

Q’s Capital A/c Dr. 4,000

R’s Capital A/c Dr. 1,000

To P’s Capital A/c 5,000

**Solution 64:**

B’s Capital A/c Dr. 4,000

To A’s Capital A/c 3,000

To C’s Capital A/c 1,000

**Solution 65:**

Anu Dr. 250

To Beena 25

To Ceema 100

To Deepa 125

**Solution 66:**

Mohan’s Current A/c Dr. 60

To Ram’s Current A/c 60

**Solution 67:**

Z’s Current A/c Dr. 400

To Y’s Current A/c 400

**Solution 68:**

S’s Capital A/c Dr. 27,000

To R’s Capital A/c 27,000

**Solution 69:**

Jagdish Dr. 3,000

To Ashish 2,000

To Deepak 1,000

Hint: Profits are taken for last 4 years and not for 5 years.

**Solution 70:**

A’s Capital A/c Dr. 31,666

To B’s Capital A/c 6,333

To C’s Capital A/c 25,333

**Solution 71:**

X Dr. 45,000

Y Dr. 5,000

To Z 50,000

**Solution 72:**

Y Dr. 7

Z Dr. 23

To X 30

**Solution 73:**

Working Note: Profit distribution

Robine = 80,000 x 5/10 = 40,000 – 1,000

William = 80,000 x 4/10 = 32,000 – 1,000

Henry = 80,000 x 1/10 = 8,000 + 1,000 from Robin + 1,000 from William

Gauranteed amount to Henry 10,000 but he is getting only 8,000, deficiency of 2,000 will be borne by Robin and William equally.

OR

**Solution 74:**

**Solution 75:**

Note : Deficiency of Rs.2,000 will be borne by Austin and Alex in 3:2.

**Solution 76:**

Working Note : Deficiency 500 – 230 = 270

Ram will pay = 270 x 3/5 = 162

Mohan will pay = 270 x 2/5 = 108

**Solution 77:**

**Solution 78:**

**Solution 79:**

Calculation of new share : 1- 1/5 = 4/5 Remaining share

New share of A = 2/3 x 4/5 = 8/15

New share of B = 1/3 x 4/5 = 4/15

New share of C = 1/5 x 3/3 = 3/15

Deficiency 10,000 will be borne by A.

**Solution 80:**

Amount due as manager: Salary 10,000 + Commission 4,000 (84,000 x 5/105) = 14,000

Amount due as partner (profit) = 94,000 x 1/5 = 18,800

Deficiency = 18,800 – 14,000 = 4,800

Actual profit after deducting salary and commission was Rs.80,000 i.e.

94,000 – 10,000 Salary – 4,000 Commission = 80,000

Profit to X = 80,000 x ¾ = 60,000 – 4,800 Deficiency = 55,200

Profit to Y = 80,000 x ¼ = 20,000

**Solution 81:**

**Solution 82:**

**Solution 83:**

Amount payable as partner = 54,300 x 1/6 = 9,050

Deficiency = 9,050 – 8,300 = 750

Actual profit = 54,300 – Salary – Commission = 46,000

**Solution 84:**

**Solution 85:**

**Solution 86:**

**Solution 87:**

**Solution 88:**

### Brilliant Problems

**Solution 1:**

Manager’s Commission = 1,10,000 x 10/110 = 10,000

A’s Commission = 1,10,000 – 10,000 = 1,00,000 x 12/100 = 12,000

B’s Commission = 1,00,000 – 12,000 = 88,000 x 10/110 = 8,000

**Solution 2:**

C’s Capital A/c Dr. 17,000

To A’s Capital A/c 9,000

To B’s Capital A/c 8,000

Note for teachers: Partners have directly divided profit Rs.1,05,000 in ratio of 1:1:1 i.e. A Rs.35,000; B Rs.35,000 and C Rs.35,000.

But they should have prepared P/L Appropriation Account to provide salary, commission and guaranteed amount etc.

Note : Deficiency of Rs.6,000 borne by A and C in 3:1 ratio.

**Solution 3:**

X’s Current A/c Dr. 750

To Y’s Current A/c 150

To Z’s Current A/c 600

**Solution 4:**

C’s Capital A/c Dr. 5,000

To A’s Capital A/c 2,600

To B’s Capital A/c 2,400

**Solution 5:**

Nisha’s Capital A/c Dr. 55,000

To Preeti’s Capital A/c 55,000

**Solution 6:**

**Solution 7:**

**Solution 8:**

Note: No partnership deed so do not calculate interest on drawings and profits will be shared equally.

**Solution 9:**

E’s Current A/c Dr. 22,200

To F’s Current A/c 1,200

To G’s Current A/c 21,000

**Solution 10:**

**Solution 11:**

Note: No partnership deed, so no salary to partners.

**Solution 12:**

**Solution 13:**

Working Note: Interest on capital to Bunty Rs.36,000 and his guaranteed share is 82,000 (including interest on capital). His actual share: 36,000 (interest on capital) + 44,000 profit = 80,000 Deficiency = 82,000 – 80,000 = 2,000

**Solution 14:**

General Reserve = 1,84,500 + 600 + 450 – 6,600 – 4,800 = 1,74,150 x 10/100 = 17,415

**Solution 15:**

Note : No interest on capital to Z because his capital account is showing negative balance.

X’s Commission = Profit 99,000 x 10/100 = 9,900

Y’s Commission = 99,000 – 9,900 = 89,100 x 10/100 = 8,910

**Solution 16:**

**Solution 17:**

Z’s Capital A/c Dr. 135

To X’s Capital A/c 120

To Y’s Capital A/c 15

**Solution 18:**

SK’s Capital A/c Dr. 48

To VK’s Capital A/c 48

**Solution 19:**

**Solution 20:**

X’s Capital A/c Dr. 3,000

Y’s Capital A/c Dr. 16,500

To Z’s Capital A/c 19,500

**Solution 21:**

A’s Capital A/c Dr.8,500

To B’s Capital A/c 4,500

To C’s Capital A/c 4,500

**Solution 22:**

(a) 12,000 x 5/100 = 600

(b) 24,000 x 6/100 = 1,440

(c) 20,000 x 6/100 x 6/12 = 600

(d) 10,000 x 6/100 = 600

**Solution 23:**

(a) 45,000 x 8/100 x 5/12 = 1,500

(b) 18,000 x 8/100 x 4/12 = 480

(c) 9,000 x 8/100 x 4.5/12 = 270

(d) 6,000 x 8/100 x 3.5/12 = 140

(e) 12,000 x 8/100 x 7/12 = 560

**Solution 24:**

RK’s Capital A/c Dr. 5,000

RS’s Capital A/c Dr. 5,000

To RT’s Capital A/c 10,000

**Solution 25:**

Rajesh’s Current A/c Dr. 264

To Sunil’s Current A/c 264

**Solution 26:**

**Solution 27:**

Candy’s Current A/c Dr. 18,000

To Ashok’s Current A/c 16,000

To Brijesh’s Current A/c 2,000

**Solution 28:**

**Solution 29:**

Note : Commission = 13,00,000 x 30/130 = 3,00,000

Ram = 3,00,000 x 4/10 = 1,20,000

Shyam = 3,00,000 x 3/10 = 90,000

Mohan = 3,00,000 x 2/10 = 60,000

Sohan = 3,00,000 x 1/10 = 30,000

**Solution 30:**

Profit to AK = 3,60,000 x 7/12 = 2,10,000 – 3,000 to DK = 2,07,000

Profit to BK = 3,60,000 x 3/12 = 90,000

Profit to DK = 3,60,000 x 2/12 = 60,000 + 3,000 from AK

DK’s share of profit including interest should be = 75,000

Profit 60,000 + 12,000 (interest) = 72,000; Deficiency 3,000 met by AK.

**Solution 31:**

Vinod’s Current A/c Dr. 600

To Suraj’s Current A/c 600

**Solution 32:**

Working Note: Distribution of Profit :

Vandana = 9,00,000 x 1/8 = 1,12,500

Vikas = 9,00,000 profit – Vandana’s share 1,12,500 = 7,87,500 x 3/5 = 4,72,500

Vivek = 9,00,000 profit – Vandana’s share 1,12,500 = 7,87,500 x 2/5 = 2,92,500

Deficiency in Vandana’s Share = 1,50,000 (guaranteed amount) – 1,12,500 = 37,500

Deficiency cover up by:

Vikas = 37,500 x 2/5 = 15,000

Vivek = 37,500 x 3/5 = 22,500

**Solution 33:**

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