Partnership

Accounting

Medium

common

Ansh and Abhi are partners sharing profits and losses in the ratio of 3 : 2. Their capital accounts showed balances of Rs. 3,00,000 and Rs. 4,00,000 respectively on April 01, 2024. Calculate interest on Ansh's Capital for the year ending March 31, 2025, if the partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of Rs. 14,000 during the year.

Rs. 24,000

Rs. 16,000

Rs. 6,000

Rs. 3,000

✅ Correct Option: 3

Interest on capital is an appropriation, so it cannot exceed available profit. Full interest due is $3,00,000 \times 8\% = 24,000$ for Ansh and $4,00,000 \times 8\% = 32,000$ for Abhi, totalling $56,000$ . Profit is only $14,000$ , so it is distributed in the ratio of interest claims $24:32$ , not the profit-sharing ratio.

Ansh gets $14,000 \times \frac{24}{56} = 6,000$ .

2026: 13 May Shift 2

Out of the following statements, which are correct?

(A) In the absence of partnership deed, no partner is entitled to get salary or other remuneration.

(B) If a partner withdraws fixed amount at the end of each month for the whole year, then interest on drawings will be calculated for an average period of 5.5 months.

(C) If the partnership deed provides for interest on capital but the firm does not have sufficient profit, then the interest on capital will be paid to the extent of availble profit in the ratio of interest on capital.

(D) If a partner is admitted into a firm with a guarantee of certain profit, then the deficiency of profit (if any) shall be borne by the old partners in their capital ratio.

2023: 28 May Shift 1

Partnership deed should be drafted and prepared as per :

2022: 16 July Shift 2

Match List I with List II

List I	List II
A. Mutual Agency	I. It can be oral or written
B. Agreement	II. Written agreement
C. Liability of partners	III. Partnership concern carried by all or any of them acting for all.
D. Partnership deed	IV. Joint and unlimited

Choose the correct answer from the options given below:

2025: 14 May Shift 1

If partnership deed is silent on the profit sharing ratio and other provisions: interest @_____ per annum is allowed on loans advanced by partners:

2025: 14 May Shift 1

Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of Rs. 50,000 and Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. Babul is to be allowed an annual salary of Rs. 2,500. Manager is to be allowed commission Rs. 5,000. Amitabh has also given a loan on April 01, 2019 of Rs. 50,000 to the firm without any agreement. During the year 2019-20, the profits earned is Rs. 22,250. What amount of profit will be transferred to Profit and Loss Appropriation account :

2026: 29 May Shift 1

The following are the modes of reconstitution of a partnership firm

(A) Death of a partner

(B) Dissolution of the firm by notice

(D) Admission of a new partner

Choose the correct answer from the options given below:

Solution

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