Case Based Questions
1. A, B and C were partners sharing profits in the ratio of 1:2:3. Their
fixed capitals on 1st April, 2020 were: A ₹3,00,000; B*4,50,000 and
C10,00,000. Their partnership deed provided the following:
(i) A provides his personal office to the firm for business use charging
yearly rent of 1,50,000.
(ii) Interest on capitals @8% p.a. and interest on drawing @8% p.a.
(iii) A was allowed a salary @10,000 per month.
(iv) B was allowed a commission of 10% of net profit as shown by Profit
and Loss account, after charging such commission.
(v) C was guaranteed a profit of *3,00,000 after making all adjustments.
The net profit for the year ended 31st march, 2021 was 10,30,000
before making above adjustments. You are informed that A has withdrawn
*5,000 in the beginning of each month, B has withdrawn *5,000 at the
end of each month and C has withdrawn 24,000 in the beginning of
each quarter. Choose the correct option based on the above information:
(i) A's rent will be shown in:
(a) Profit and loss account
(b) Profit and Loss Appropriation account
(c) A's Capital account
(d) None of the above..
(ii) Net profit for the year is:
(a)
10,30,000
(b) 11,80,000
(c)
7,30,000
(d) 8,80,000
(iii) What will be the divisible profit?
(a)
5,56,000
(b) 5,50,000
(c)
35,52,000
(d) 5,53,000
(iv) What will be the total interest on drawings?
(a)
(c)
24,000
36,000
(v) What will be the commission of B?
(a)
8,00,000
(c)
80,000
(b) 12,000
(d)
48,000.
(b) 96,000
(d) €72,000.
​