Case Based MCQ for Accounts Chapter 2 – Fundamental of Partnership, Chapter 3 – Goodwill and Chapter 4 – Change in Profit Sharing Ratio
Question no.’s 1 to 5 are based on the hypothetical situation given below:
(a) 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 C ₹10,00,000. 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 drawings @ 10% 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You are informed that A has withdrawn ₹5,000 in the beginning of each month, B has withdrawn ₹5,000 at the end of each month and C has withdrawn ₹ 24,000 in the beginning of each quarter.
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