When I am studying law na my concept get clear but at the time of reading I don't one or two words I get stuck on that and not moving ahead is it compulsory for us to write institute language only or we can write are own language and write imp keywords and I want a test series of law for sept attempt with revaluation and feedback can you pls refer me and law writing batch also and good question bank for law this are my doubt pls help me in this matter pls
June 18, 2024
1985 - May [1] X, Y and Z were in partnership sharing profits and losses as one-half, one-fourth and one-fourth
respectively. It was agreed that interest should be allowed at the rate of 10 percent per annum on partners' capital
accounts and charged at the rate of 8 percent per annum on their drawings. No Interest was to be allowed or charged
on current accounts.
"The following are the particulars of their capital accounts, current accounts and drawings (as shown by the
draft accounts):-
Capital Accounts Current Accounts Drawings Interest
Balance on balance on for year to on
1st Jan. 1984 1st Jan. 1984 31st Dec.1984 Drawings
Rs. Rs. Rs. Rs.
X 1,50,000 Cr. 20,000 Cr. 30,000 1,000
Y 80,000 Cr. 10,000 Cr. 20,000 760
Z 60,000 Cr. 10,000 Dr. 20,000 1,400
The draft accounts for the year to 31st December, 1984 showed a net profit of Rs.1,20,000 before taking into account
interest on partners capital account balances and drawing. The audit of the draft accounts revealed the following
errors:-
(1) The rent of X's private house amounting to Rs.1,500 and paid on 31st December 1984, had been included in
rents charged in profit and loss account.
(2) Repair amounting to Rs.20,000 had been treated as additions tomachinery, depreciation on which had been
charged at the rate of 20 percent.
(3) The Premium, amounting to Rs.6,000, on Y's life insurance policy, and paid on 30th June, 1984, had been
included insurance charges in the profit and loss account.
Z retired from the partnership on 31stDecember 1984, and agreed to leave the amount due to him fromfirmas a loan
repayable by agreed installments. X and Y agreed to continue in partnership, sharing profits and losses as two-third
and one-third.
In ascertaining the amount due to Z from the firm and for the purposes of the new partnership, it was agreed
to make the following adjustments:
1) Goodwill to be valued at Rs.1,44,000, but no account for goodwill to be raised in the books.
2) The value of freehold premises to be increased by Rs.40,000.
3) The provision for bad debts to be increased by Rs.12,000.
You are required to prepare:
(a) The Profit and Loss Appropriation Account for the year ended 31st December 1984, making all the necessary
adjustments for the errors revealed, and
(b) Partners' Capital and Current Accounts (in columnar form) for the year ended 31st December, 1984,
incorporating the adjustments on Z's retirement.
June 18, 2024
