HOME ASSIGNMENT

SUBMISSION DATE: 30/06/2025

1. A partner withdraws ₹4,000 at the beginning of every month during the year. Calculate the interest on
drawings @10% p.a.
2. Ramesh withdrew ₹3,000 at the end of each month for 12 months. Calculate the interest on drawings
@12% p.a.
3. A partner withdraws ₹10,000 at the beginning of each quarter. Calculate the interest on drawings @10%
p.a.
4. Priya withdrew ₹6,000 at the end of every quarter during the year. Interest on drawings is 12% p.a.
Calculate the interest.
5. A partner withdraws ₹15,000 at the beginning of each half year. Calculate the interest on drawings @10%
p.a.
6. The profits of the firm for the last four years are:
Year 1 – ₹50,000
Year 2 – ₹60,000
Year 3 – ₹70,000
Year 4 – ₹90,000
Weights assigned: 1, 2, 3, 4 respectively.
Calculate goodwill at 2 years’ purchase of weighted average
7. A firm's capital employed is ₹10,00,000.
Normal rate of return is 12%.
Its profits for the last 4 years are: ₹80,000, ₹90,000, ₹1,20,000, and ₹1,10,000.
In Year 3, an abnormal loss of ₹10,000 was recorded. Calculate goodwill using 3 years’ purchase of
super profit method.
8. Average profit = ₹1,00,000
Capital employed = ₹10,00,000
Normal rate of return = 10%
Calculate goodwill using capitalization of super profit method.
9. X and Y are partners sharing profits in the ratio of 7:5. Z is admitted for 1/6th share in profits.
X sacrifices 1/14 and Y sacrifices 1/21 of their shares.
Calculate: (a) New Profit Sharing Ratio (b) Sacrificing Ratio
10. A, B and C are partners in the ratio of 5:3:2. D is admitted and gets 1/6th share in profits. This share is
given by A and B in the ratio of 3:1. Calculate New Profit Sharing Ratio.
11. Aakash and Bikash are partners in a firm sharing profits in the ratio of 3:2. Following is their trial balance as on 31st
March 2024:
Debit Rs Credit Rs
Debtors 26000 Trading account 118600
furniture 16000 Discount 600
machinery 45000 Provision for doubtful debt 2000
goodwill 25000 Sale of scrap 800
salaries 20000 12% Bank loan(1.7.2023) 20000
insurance premium 3000 Creditors 35000
bad debts 1500 Bills payable 15000
office expenses 3500 Capital
discount 500 Aakash 40000
telephone charges 400 Bikash 30000 70000
Stock 12000
Building 80000
cash in hand 7500
 cash at Bank 15600
Drawings
Aakash 4000
Bikash 2000 6000

262000 262000

Prepare profit and loss account and profit and loss application account and balance sheet as on above date considering
following adjustments:
i. Allow interest on capital @6%
ii. Salary to Bikash Rs 1500 per month
iii. Appreciate Building @10%pa
iv. Bad debts to be written off Rs 1000 and provide provision for bad debts @5% pa.

12. C and D were partners in a firm sharing profits and losses equally. On 31st March, 2017 their balance sheet
was as follows:
Liabilities Amount (₹) Assets Amount (₹)
Sundry Creditors 1,04,000 Cash at Bank 30,000
Capital A/cs Bills Receivable 50,000
C 2,50,000 Debtors 70,000
D 2,16,000 Furniture 1,10,000
Land and Building 3,10,000
Total 5,70,000 Total 5,70,000
On 1st April, 2017, they admitted E as a new partner for 13rd share in the profits on the following
conditions.
(i) E will bring ₹ 3,00,000 as her capital and ₹ 50,000 as her share of goodwill premium, half of which will
be withdrawn by C and D.
(ii) Furniture will be reduced by 10% and 5% provision for bad and doubtful debts will be created on
debtors.
(iii) Value of land and building will be appreciated by 20%.
(iv) There being a claim against the firm for damages, a liability to the extent of ₹ 8,000 will be created for
the same.
Pass journal entries and prepare new balance sheet.

13. Abha and Bimal are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2015
they admitted Chintu into partnership for 1/5th share in the profits of the firm. On that date their balance
sheet stood as under

Chintu was admitted on the following terms