2nd year Accounting Partnership Formation Test Written By TARIQ AZIZ

Tuesday, March 15, 2016

Shamim Collegiate

House NO# LA 54 Block 15 Gulshan e Mustafa FB Area karachi, Mobile :: 03022282940.

Ø Q1)Tariq , Kiran and suleman formed a partnership under Name of TKS Traders and agreed to share profit and loss in the ratio of 3:2:4 respectively, this ratio is determined on the basis of capital contributed by each partner as per agreement the total capital of the firm shall be 1,00,000.00

Tariq invest 10,000 cash , inventry 23333 in the business

Kiran contribute 5000 cash, inventry 5000 and balance on sufficant cash equal to Tariq

Suleman contribute sufficient cash to make his capital ratio of 3:2:4 with kiran and tariq

Required

Journal entries and balance sheet 01 march 2014

Ø Q2) on 1^st may 2014 iqra , bushra , uzma and sumaira formed a partnership bussiness with name Shamim College total captal 14,00,000 to contributed by them in the ratio of 4:3:2:1 respectively

Required

Find the invesment of each partner and record in General journal and balance sheet

Ø Q3)on feb 2014 salman rehman and kamran formed a partnership under the name SRK Brothers and agreed profit and loss in the ratio 1:2:3 and total capital 1080000

Salman invest cash 60,000 and furniture 120,000

Rehman Machinary rs 200,000 and sufficient cash for the balance

Kamran contributed sufficient cash

Required

General journal and balance sheet

Ø Q4) On jan 1 2014 Sana saimaa nd Saba formed a partnership contributing a equal capital

Sana. cash 200,000 and building 800,000

Saimaa invest cash 500,000 and merchandise inventry for the balance

Saba contributed equipment 800,000 and balance for sufficient cash

Required

General journal and balance sheet

Ø Q5)Waleed son of rizwan were doing indepent bussiness from the years their financial position on january 01 2014 was as under

Waleed cash rs 70,000 account receivable rs 200,000 merchandise inventory rs 180,000 land rs 200,000 Office equipment rs 250,000 , allowance for bad debts rs 40,000 Allowance for depreciation –equipment rs 35,000 account payable 125,000

Rizwan cash rs 80,000 account receivable rs 260,000 merchandise inventory rs 120,000 land rs 150,000 Office equipment rs 180,000 allowance for bad debts rs 90,000 Allowance for depreciation –equipment rs 40,000 account payable 60,000

Father and son decided to form a partnership under the title name Rizwan & Sons All assets and liabilities were turned over under the following agreed valued

Shamim Collegiate

House NO# LA 54 Block 15 Gulshan e Mustafa FB Area karachi, Mobile :: 03022282940.

	Waleed	Rizwan
Account receivable	130,000	180,000
Merchandise inventory	160,000	100,000
Land	250,000	180,000
Office equipment	200,000	150,000
Account payable	2/5	1/3

Required

General journal and balance sheet

Ø Q6) the following balance sheet

	Fahad	Raheel
Cash	120,000	180,000
Account receivable	280,000	300,000
Merchandise inventory	90,000	150,000
Office furniture	200,000	220,000
Total assets	690,000	850,000
Account payable	90,000	120,000
Capital	600,000	730,000
Total equities	690,000	850,000

All assets and liabilities were taken over under name of Friend and Co Under the following agreed valued

Fahad

ü Account receivable be realized rs 240,000

ü Merchandise inventory be valued at rs 90,000

ü Office furniture valued at 150,000

Raheel

ü Account receivable be realized rs 250,000

ü Merchandise inventory be valued at rs 135,000

ü Office furniture valued at 200,000

ü Account payable is to be accepted

They further decided that they make capital of rs 550,000 and 650,000

Required

General journal and balance sheet

Q7)Sana, Maha and Iqra form a partnership under the name of M/S SMA

(i) Sana contribute cash rs 30,000 and transfer firm title of his office premises, the book value of which was 80,000. the mutually agreed to the value of office to be 90,000

(ii) Maha contribute cash 40,000 and hand over Office Equipment. The book value of which 30,000. they agreed to the value of Office Equipment to be 35,000

(iii) Iqra Contributed 50,000 and Supplies the book value 20,000. they agreed to the value of Supplies 25,000

Required

Give entries In General Journal of the new firm to record capital contributions by the partners and balance sheet

Note (information for students)

Definition of premises in the Online Dictionary. Meaning of premises. ... plural noun building(s), place, office, property, site, it is fixed assets

Q8)Jan 1,2014 Abdul Rehman And Abdul Aziz form a partnership by merging business. On this date their balance sheet items were as under :-

	Abdul Rehman	Abdul Aziz
Cash	13,000	8,000
Account receivable	20,000	15,000
Merchandise inventory	21,000	26,000
Furniture	20,000	10,000
Allowance for depreciation -Furniture	5000	1000
Allowance for bad debt	1000	500
Account Payable	8,000	20,000

Abdul rehman Account receivable be valued at 18,000.Firmiture be valued at 12,000 Merchandise inventory be valued 22,000 and one half of the account payable be accepted

Abdul aziz Account receivable be valued at 14,000.Firmiture be valued at 5,000 Merchandise inventory be valued 20,000 and three-fourth of the account payable be accepted

It was also decided that abdul aziz will invest sufficient cash to give him equal interest with Abdul rehman