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M.178 An Aid to Accountancy—CBSE XII

13. (a) X, Y and Z were partners in a firm. On 1st April, 2017, their fixed capitals stood
at ` 50,000, ` 25,000 and ` 25,000 respectively.
As per the provisions of the Partnership Deed:
(i) Z was entitled for a salary of ` 5,000 p.a.
(ii) All the partners were entitled to interest on capital at 5% p.a.
(iii) Profits were to be shared in the ratio of capitals.
Net profit for the year ended 31st March, 2017 of ` 33,000 and 31st March, 2018
of ` 45,000, was divided equally without complying the above terms.
Y noted the above errors and brought them to the notice of other partners.
Pass an adjustment Journal entry to rectify the above errors.
(b) Calculate interest on drawings of Mohan @ 10% p.a. for the year ended
31st March, 2018 in each of the following alternative cases:
(i) If his drawings during the year were ` 24,000.
(ii) If he withdrew ` 2,000 p.m. at the end of every month. (4 + 2)
14. Following is the Receipts and Payments Account of Queen’s Club for the year ended
31st March, 2018:
Dr. RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018 Cr.
Receipts ` Payments `
To Balance b/d 1,82,000 By Salaries 1,66,000
To Subscriptions 1,80,000 By Stationery 32,000
To Tournament Fund 1,64,000 By Rent 48,000
To Interest (6% Investments) 65,000 By Telephone Expenses 8,000
To Donations 1,12,000 By Sports Material and Expenses 78,000
To Sale of Concert Tickets 2,47,000 By 6% Investments 5,00,000
By Miscellaneous Expenses 24,000
By Concert Expenses 58,000
By Balance c/d 36,000
9,50,000 9,50,000
The following additional information is provided:
(a) Subscriptions include ` 12,000 for the year ended 31st March, 2017 and ` 18,000
for 2019.
(b) Stock of stationery on 31st March, 2017 and 2018 was ` 7,200 and ` 5,400 respectively.
(c) Stock of sports material in the beginning and at the end of the year was ` 12,000
and ` 21,000 respectively.
(d) Rent includes ` 4,000 paid for March, 2017. Rent for March, 2018 is outstanding.
(e) Telephone expenses include ` 3,000 as quarterly rent up to 31st May, 2018.
(f) The value of Building as on 31st March, 2017 was ` 8,00,000 and you are required
to write off depreciation at 10%.
(g) The value of Investments on 31st March, 2017 was ` 10,00,000 and the club made
similar additional Investments during the year on 1st October, 2017.
You are required to prepare the Income and Expenditure Account of the club for the
year ended 31st March, 2018. (6)