Partnership

Accounting

Easy

common

John, Janardan and Javed are partners in a firm. Their existing profit sharing ratio is 5 : 3 : 2. From 1st April 2025, they decide to share the future profits in the ratio 3 : 2 : 1. Workmen compensation reserve is appearing in the balance sheet on this date, if no information is available for the same, then it will be :

Distributed among the partners in old profit sharing ratio

Distributed among the partners in capital ratio

Distributed among the partners in new profit sharing ratio

Carried forward to new balance sheet without any adjustment

✅ Correct Option: 1

When no claim information is given, the entire Workmen Compensation Reserve is treated as a free reserve. Since it was built out of profits earned before the change, it belongs to the partners in the ratio in which those profits were shared, that is, the old profit sharing ratio of $5:3:2$ .

Entry: Workmen Compensation Reserve A/c Dr. To Partners' Capital A/cs (old ratio).

2026: 19 May Shift 1

Which of the following is not a feature of partnership as per Partnership Act 1932 ?

2025: 4 June Shift 2

Match List-I with List-II

List-I	List-II
Interest on Drawings	Time (Month)
(A). When the amount is withdrawn at the beginning of each month.	(I). 6 months
(B). When the amount is withdrawn at the end of each month.	(II). 6.5 months.
(C). When the amount is withdrawn at the middle of each month.	(III). 5.5 months.
(D). When the amount is withdrawn at the end of each quarter.	(IV). 4.5 months.

Choose the correct answer from the options given below:

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: 27 May Shift 1

Correct Journal entry for transferring interest on capital to Profit and Loss Appropriation Account is-

2026: 31 May Shift 1

Reconstitution of a partnership firm takes place when:

2026: 21 May Shift 1

Mukesh and Chittudeep are two partners. Mukesh and Chittudeep withdrew ₹ 30,000 each at the beginning of each quarter. Calculate interest on Chittudeep's drawings @10% p.a.

Solution

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