Accountancy
Accounting for partnership firm
Class 12th
Q1)Define partnership.
Ans:- section 4 of the Indian partnership act 1932 defines a partnership as ,"the relationship between persons who have agreed to share the profit of a business and carried on by all or any of them acting for all,"
Q2) what are the three characteristics of partnership?
Ans:- i)minimum and maximum number of partners:- there must be a minimum of two person to form a partnership. the Indian partnership act 1932 does not specify the maximum number of partners.however, the Indian companies act 2013, section 464 read with companies rules 2014 restrict the maximum number of partners to 50.
ii) lawful business:- partnership is formed for carrying on any lawful business no partnership can be formed to carry on any illegal business.
iii) sharing of profit:-. to constitutes a partnership the parties must have agreed to carry on a business and to share the future profit between them.
Q3) what are the three essential element of a partner?
Ans:- i) there must be an association of two or more persons.
ii) there must be an agreement between all the persons concerned.
iii)the object of the agreement must be to share the profit of a business and
iv) the business must be carried on by all or any of them acting for all.
Q4) mention three right of a partner.
Ans:- i) every partner has a right to take part in the conduct and management of the business
ii)every partner is born to attend diligently to his duties in the conduct of the business.
iii)every partner has a right to have access to inspect and copy any of the books of the form.
Q5) what is partnership deed?
Ans:- partnership deed is a written document containing the term of agreement among the partnership is known as partnership deed.
Q6) mention any five principal clauses usually included in a partnership deed.
Ans:-i) the name of the firm. ii) the nature of the business. iii) the names,address and occupation of all the partners. iv)the duration of the partnership that is whether it is 'at will' or constituted for a fixed term. v)the internal management of the partnership business.
Q7) what account are maintained when-. i) the partners capital account are fixed-
ii) partners capital are fluctuating-
Ans:-a)when partners capital are fixed. i) partners capital account. ii) partners current account are maintained.
B) when capital are fluctuating. i) only partners capital account are prepared.
Q8) what do you mean by fixed capital?
Ans:-a fixed capital is that which is maintained in the same figure during the life of the partnership it will be credited with the original contribution and the balance is carried forward the year. when the capital of partners are fixed a separate current account is opened in the name of the partners and all the adjustment entries are to be shown in this account
Q9) what is fluctuating capital?
Ans:-a fluctuating capital is one whose balance fluctuates from year in year.all items affecting partners accounting like interest on capital,salary,commission share on profit or loss, drawing etc.are recorded in this account.
Q10)Give two circumstances under which the fixed capital of a partner may be charged.
Ans:-i) permanent drawing of partners capital. ii) permanent introduction of additional capital into the form.
Q11)What is what is PL appropriation account?why it is preparedaccount?
Ans:-profit and loss appropriation account is a special account that a firm prepare to show the distribution of profit /loss among the partners or partners capital. adjustment entries are shown p&l appropriation account and the balance of net profit after adjustment the above transactions is distributed among the partners in certain ratio.
Q12)give the adjustment entries required for recording interest on capital when the capital account are maintained under:- a) fluctuating capital method. b) fixed capital method.
Ans:- Adjustment entry. A) interest on capital A/C Dr To partners capital A/C
B) interest on capital A/C Dr To partners current A/C
Q13)Give the adjustment entry is respect of the following
Ans:- a) interest on loan from partner. -- interest on partners loan A/C Dr. To partners capital A/C b) interest on drawing --partners capital A/C Dr To interest on drawing A/c
Q14) mention any 3 distinction between fixed and fluctuating capital account of partners.
Ans:-
Q15)Rules application in the absence of partnership deed.
Ans:-
Q16) formulae of interest on drawing.
Ans:-
Q17) Calculation of commission to partners.
Ans:-
