Accountancy 2019 Delhi Set-2

General Instructions:

1. This question paper contains two parts A and B.
2. Part A is compulsory for all.
3. Part B has two options: Analysis of Financial Statements and Computerized Accounting.
4. Attempt only one option of Part B.
5. All parts of a question should be attempted at one place.

Question 1

What is meant by 'Gaining Ratio' on retirement of a partner?

OR

P, Q and R were partners in a firm. On 31st March, 2018 R retired. The amount payable to R ₹ 2,17,000 was transferred to his loan account. R agreed to receive interest on this amount as per the provisions of Partnership Act, 1932. State the rate at which interest will be paid to R.

SOLUTION:

The ratio in which the outgoing partner's profit share is gained or acquired by the remaining partners is known as Gaining ratio. This ratio is calculated by taking the difference between the new ratio and the old ratio of the partners.

Algebraically,

Gaining Ratio = New Profit Sharing Ratio – Old Profit Sharing Ratio

OR

The rate of interest payable to R would be 6% per annum as per the provisions of Partnership Act, 1932.

Question 2

Atul and Neera were partners in a firm sharing profits in the ratio of 3:2. They admitted Mitali as a new partner. Goodwill of the firm was valued at ₹ 2,00,000. Mitali brings her share of goodwill premium of ₹ 20,000 in cash, which is entirely credited to Atul's Capital Account. Calculate the new profit sharing ratio.

SOLUTION:

Revalued Goodwill of the firm on Mitali's admission = ₹ 2,00,000

Premium for Goodwill brought in cash by Mitali = ₹20,000

So, Mitali's share in future profit of the firm = <math>\frac{20,000}{2,00,000} = \frac{1}{10}</math>

Atul's Account has only been credited by the premium brought in by Mitali

So, Atul's Sacrificing Share = Profit Share of Mitali = <math>\frac{1}{10}</math>

New Profit Share of Atul = Old Profit Share - Sacrificing Share

New Profit Share of Atul= <math>\frac{3}{5} - \frac{1}{10} = \frac{5}{10}</math>

Hence,

Atul Mitali Neera New Profit Sharing Ratio <math>\frac{5}{10}</math> 10 <math>\frac{2}{5}</math> OR <math>\frac{5}{10}</math> <math>\frac{1}{10}</math> <math>\frac{4}{10}</math> OR 5 • • 4

Question 3

Chhavi and Neha were partners in a firm sharing profits and losses equally. Chhavi withdrew a fixed amount at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. At the end of the year, interest on Chhavi's drawings amounted to ₹

1. Pass necessary journal entry for charging interest on drawings.