Partnership

Accounting

Medium

Match List-I with List-II

Match the accounts with their purpose

List-I List-II
(A) Profit and Loss adjustment A/c (I) Changes in amount of capital
(B) Profit and loss appropriation A/c (II) Generally no change in amount of capital
(C) Fixed capital A/c (III) Errors and omissions found after preparation of final A/c
(D) Fluctuating capital method (IV) Extention of Profit & loss A/c

Choose the correct answer from the options given below:

List-I	List-II
(A) Profit and Loss adjustment A/c	(I) Changes in amount of capital
(B) Profit and loss appropriation A/c	(II) Generally no change in amount of capital
(C) Fixed capital A/c	(III) Errors and omissions found after preparation of final A/c
(D) Fluctuating capital method	(IV) Extention of Profit & loss A/c

(A) - (I), (B) - (II), (C) - (III), (D) - (IV)

(A) - (I), (B) - (III), (C) - (II), (D) - (IV)

(A) - (III), (B) - (IV), (C) - (I), (D) - (II)

(A) - (III), (B) - (IV), (C) - (II), (D) - (I)

✅ Correct Option: 4

(A) Profit and Loss Adjustment A/c → (III) Errors and omissions found after preparation of final A/c

When errors or omissions are discovered after the final accounts have been prepared and closed, a Profit and Loss Adjustment Account is opened to rectify these without disturbing the closed books.

(B) Profit and Loss Appropriation A/c → (IV) Extension of Profit & loss A/c

The Profit and Loss Appropriation Account is prepared by partnership firms to show how the net profit is distributed among partners. It continues after the Profit and Loss Account and shows appropriations like interest on capital, partner's salary, and profit distribution.

(C) Fixed Capital A/c → (II) Generally no change in amount of capital

Under the Fixed Capital Method, the capital account maintains a constant balance. All adjustments like drawings, interest on capital, share of profit/loss, etc. are recorded in a separate Current Account, leaving the capital amount unchanged.

(D) Fluctuating Capital Method → (I) Changes in amount of capital

Under the Fluctuating Capital Method, all transactions (drawings, interest on capital, profit share, additional capital, etc.) are directly recorded in the Capital Account itself. This causes the capital balance to keep changing with each transaction.

Correct matching: (A)-(III), (B)-(IV), (C)-(II), (D)-(I)

Option 4 is correct.

2025: 3 June Shift 2

Which of the following account / statement is prepared to distribute the profit or loss among partners

2022: 20 Aug Shift 2

How will you deal with the following items while preparing for the Bombay Women Cricket Club, its Income and Expenditure Account for the year ending 31st March 2021, and its Balance Sheet, on the same date : Donation for the Pavilion construction Rs. 12,25,000, Expenditure incurred Rs. 10,80,000, Total estimate Rs. 25,00,000.

2025: 26 May Shift 2

Which of the following statements are correct about partnership:-

(A) Each partner carrying on the business is the principal as well as the agent for all the other partners

(B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner

(C) If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners

(D) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate

Choose the correct answer from the options given below:

2026: 19 May Shift 1

ABC Ltd. has a partnership deed as per which interest on drawing is to be charged @ 9% p.a and the total interest on drawings of Aman (partner) is calculated to be Rs 1755. Find the monthly amount he withdrew, if drawings are done at the beginning of every month during the year.

2026: 13 May Shift 2

Average profits of a firm during the last few years are Rs. 2,50,000 and the normal rate of return in a similar business is 5%. If the goodwill of the firm is 5,00,000 at 5 years' purchases of super profit, find the amount of capital employed by the firm.

2025: 15 May Shift 1

What is the amount of profit to be credited to A's Capital account?

Solution

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