HOLIDAY ASSIGNMENT

SUBJECT-ACCOUNTANCY
CLASS-XII
2024-2025

Activity Based Work : Prepare the Power Point Presentation based on the
Chapter 1,2 and 3 from the Accountancy Book.
1 A,B and C are three partners in 5:3:2 . On 31st December 2020, they had the fixed
capital as Rs.1,50,000 ; Rs.2,50,000 and Rs. 3,00,000 respectively . The current
account balance on 31st December 2020 A ₹ 50,000 ; B ₹60,000 and C ₹ 80,000
respectively. During the year , A withdrew Rs.60,000 during the year , while B has
withdrawn ₹ 5,000 p.m.in the beginning of each month and C has withdrawn ₹10,000
after every two month at the end of the year and credited the profit in 2:2:1
Rs.4,50,000 without providing the interest on capital @ 9% p.a. and interest on
drawing @6% p.a. It was also decided that the minimum profit of Rs.2,00,000 to B if
any deficit arises so far will be compensated by A only.
Pass the necessary adjustment entry to rectify the above and answer the following
also.
a. State the revised Partner’s Current Account after the rectification.
2 Ravi , Kavi and Savi are partners in 2:2:1ratio with the capital investment of ₹3,00,000
in profit sharing ratio. It is being agreed that there will be 10% interest on capital and
salary to Ravi and Kavi ₹2,500 per quarter and ₹10,000 per half year respectively. Savi
is allowed a commission of ₹20,000. The firm earned a net profit of ₹2,80,000. Ravi
will be guaranteed a minimum profit of ₹1,00,000 before interest on capital but after
salary while Savi was guaranteed a minimum profit of ₹60,000 excluding commission
. If any deficit arises on account of this will be borne by Kavi.
Prepare the P & L Appropriation A/C and Partner’s Capital A/C
3 Suresh , Mahesh and Naresh are three partners in 2:2:1 with the capital investment of ₹
2,50,000 , ₹ 2,50,000 and ₹1,00,000 respectively as from 1st April 2018. As per the
Partnership Deed the following points were agreed upon:
a. Salary to each Partner will be ₹ 5,000 per quarter.
b. Interest on capital @ 9% p.a.
c. First ₹50,000 will be distributed in profit sharing ratio , next ₹45,000 will be
distributed in equal ratio and the remaining profit will be in 5:3:2.
As on 1st October Suresh and Mahesh withdrawn ₹ 50,000 each out of their capital
while Naresh introduced ₹1,00,000 as on 31st Dec 2018 . Suresh has allowed to use his
personal premises by the firm and for the same firm paid ₹20,000 as rent and there is
a manager who will be paid a commission ₹30,000.
Profit at the end of the year was ₹4,00,000 before all the above appropriations.
Prepare the Profit & Loss Appropriation A/C and Partner’s Current A/C.
4 A,B and C are three partners in 5:3:2 . On 31st December 2020, they had the fixed
capital as Rs.1,50,000 ; Rs.2,50,000 and Rs. 3,00,000 respectively . The current
account balance on 31st December 2020 A ₹ 50,000 ; B ₹60,000 and C ₹ 80,000
respectively. During the year , A withdrew Rs.60,000 during the year , while B has
withdrawn ₹ 5,000 p.m.in the beginning of each month and C has withdrawn ₹10,000
after every two month at the end of the year and credited the profit in 2:2:1
Rs.4,50,000 without providing the interest on capital @ 9% p.a. and interest on
drawing @6% p.a. It was also decided that the minimum profit of Rs.2,00,000 to B if
any deficit arises so far will be compensated by A only.
Pass the necessary adjustment entry to rectify the above and answer the following
 also.
b. State the revised Partner’s Current Account after the rectification.
5 X ,Y and Z are partners sharing profits and losses in the ratio of 2:3:4. They decided to
share future profits and losses in the ratio of 5:3:2. The goodwill of the firm was
existed ₹ 45,000. They also decided to record the effect of the following without
affecting their book values :
General Reserve ₹40,000
Profit & Loss A/C ₹20,000
Advertisement Suspense A/C ₹ 15,000
You are required to give the necessary single journal entries.
6 Pass the necessary journal entries in the following cases .
a. The stock ( Book Value of ₹40,000) was undervalued by 20%.
b. Creditors amounting to ₹900 were not likely to be claimed.
c. Investment ( Book Value ₹38,000 ) were revalued at ₹40,000 Investment
Fluctuation Fund was recorded at ₹5,000.
d. The Land (Book Value ₹1,20,000) was overvalued by 25%.
7 A and B are two partners in 3:2. They decided to admit C for ¼th share in profit. It
isbeing decided that Goodwill will be calculated on the basis of twice of average profit
of last three years. The profit on 31st March 2019 ₹75,000 ; 31st March 2018 ₹60,000 ;
31st March 2017 ₹45,000 and 31st March 2016 ₹90,000. It is being noticed that the
profit of 31st March 2018 included a gain on sale of shares ₹20,000 while the closing
stock of 31st March 2019 was undervalued by ₹20,000. On 30th Sep .2016, there was an
expenditure of ₹15,000 was made by B for his personal family medical bill and debited
as revenue expenditure in the books .Find the share of goodwill of C.
8 X and Y started a business with the capital investment of ₹1,00,000 and ₹ 1,50,000
respectively in equal ratio. They decided to calculate the value of Goodwill with the
help of the capitalisation of Super Profit and Average Profit of the last four years. The
normal rate of return is 20% in the similar industry. Total assets of the firm was
₹5,00,000 and total external liabilities was ₹1,50,000 . The remaining was decided as
profit.
Find out the value Goodwill .

9 A,B and C are partners in 3:2:1 They started a business with the capital of ₹50,000
;₹40,000 and ₹60,000 respectively. The firm valued the goodwill ₹5,00,000 by using
capitalisation of super profit . The normal rate of return is 10% . Calculate the value of
actual average profit. If there was an abnormal profit of ₹20,000 and abnormal loss of
₹15,000. Calculate the value of net profit also.
10 A, B and C are three partners in 3:2:1 and started a Start – Up with initial capital of
₹3,00,000 ; ₹2,00,000 and ₹1,00,000 respectively. The firm earned the profits in 5
years .
2019 ₹ 50,000
2020 ₹60,000
2021 ₹80,000
2022 (₹50,000)
2023 ₹50,000)
There was a management expenses of ₹20,000 p.a. Closing stock of 2022 was
undervalued by ₹40,000. Calculate the goodwill in the following cases.
a. 5 times of the actual average profit of the best 3 years of the profit.
b. Thrice of the excess actual average profit of the latest 4 years over the 10% of
normal profit .
c. Capitalisation of actual average profit and super profit method if the normal
rate of return 12.5%.
11 P, Q and R were partners with fixed capital of ₹ 40,000, ₹32,000and ₹24,000.After
 distributing the profit of ₹48,000 for the year ended 31st March 2022 in their
agreed ratio of 3 : 1 : 1it was observed that:
(1) Interest on capital was provided at 10% p.a. instead of 8% p.a.
(2) Salary of ₹ 12,000 was credited to P instead of Q.
You are required to pass a single journal entry in the beginning of the next year to
rectify the above omissions.

12 Cheese and Slice are equal partners. Their capitals as on April 01, 2022 were Rs.
50,000 and Rs. 1,00,000 respectively. After the accounts for the financial year
ending March 31, 2023 have been prepared, it is observed that interest on capital @
6% per annum and salary to Cheese @ ₹5,000 per annum, as provided in the
partnership deed has not been credited to the partners’ capital accounts before
distribution of profits.
You are required to give necessary rectifying entries using P&L adjustment account.
13 Calculate goodwill of a firm on the basis of three years purchases of the Weighted
Average Profits of the last four years. The profits of the last four years were:
Year 2020 2021 2022 2023
Profit (₹) 28,000 27,000 46,900 53,910
a) On 1st April, 2020 a major plant repair was undertaken for ₹10,000 which was
charged to revenue. The said sum is to be capitalized for goodwill calculation
subject to adjustment of depreciation of 10% on reducing balance method.
b) For the purpose of calculating Goodwill the company decided that the years
ending 31.03.2020 and 31.03.2021 be weighted as 1 each (being COVID
affected) and for year ending 31.03.2022 and 31.03.2023 weights be taken as
2 and 3 respectively.
14 Sunil, Aadil and Mona are partners having fixed capitals of ` 2,00,000, ` 1,60,000
and ` 1,20,000 respectively. They share profits in the ratio of 3 : 1 : 1. The
partnership deed provided for the following which were not recorded in the
books.
(i) Interest on capital @ 5% per annum.
(ii) Salary to Sunil ` 1,500 per month and to Mona ` 1,000 per month.
(iii) Transfer of profit to general reserve ` 10,000. Net profit for the year
ended 31st March, 2022 was `
1,00,000.
Pass necessary rectifying entry for the above adjustments in the books of the
firm. Also show your workings clearly.
15 Rajesh and Dinesh are two partners in a firm sharing profit and losses in the
ratio of 3 : 2. At the time of distributing the net profit between the partners,
interest on capital was credited @18% instead of 8% wrongly. Now, pass an
adjusting journal entry to correct this error. Partners’ capitals are given on 1st
April, 2021 as ` 5,00,000 and ` 3,00,000 respectively. Profit on 31st March, 2022
is ` 2,00,000.