Question 02 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 02 Chapter 2 of +2- Part-

Question 02 Chapter 2 of +2-Part-1

No Partnership Deed Exists

2. (Absence of Partnership Deed) X and Y are partners in a firm. They do not have any agreement. Suggest what would be done in the following cases:
(a) X spends twice the time that Y devoted to business. X claims that he should get salary of Rs.6,000 per month for his extra time spent.
(b) Y has provided a capital of Rs. 50,000 whereas X has provided Rs.5,000 only as capital. X, however, has provided Rs.10,000 as loan to the firm. What interest, if any, will be given to X and Y?
(c) X wants to introduce his son Z into his business. Y objects to it.
(d) Y wants that profit should be distributed in the ratio of capitals but X wants it should b distributed equally.

 

The solution of Question 02 Chapter 2 of +2 Part-1

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Accounting Treatment if Partnership Deed Absence
Cases
Treatment
(a) X spends twice the time that Y devoted to business. X claims that he should get the salary of Rs.6,000 per month for his extra time spent.   X is not entitled to any salary in the absence of any specific agreement between partners.
     
(b) Y has provided the capital of Rs. 50,000 whereas X has provided Rs.5,000 only as capital. X, however, has provided Rs.10,000 as a loan to the firm. What interest, if any, will be given to X and Y?   No interest in capitals is allowed to X and Y. However, X is entitled to interest on loan @6% p.a.
     
(c) X wants to introduce his son Z into his business. Y objects to it.   No partner can be admitted into a firm unless all the partners agree to it. Thus, Z cannot be admitted as a partner unless Y gives his ascent to it.
     
(d) Y wants that profit should be distributed in the ratio of capitals but X wants it should b distributed equally.   In absence of any specific agreement regarding the distribution of the firm’s profits, profits among the partners should be distributed equally.
     
     

 

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

  • Chapter No. 1 – Accounting Not for Profit Organisations
  • Chapter No. 2 – Partnership Accounts – I
  • Chapter No. 3 – Partnership Accounts – II (Introduction)
  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
  • Chapter No. 8 – Company Accounts (Share Capital)
  • Chapter No. 9 – Company Accounts (Issue of Debentures)
  • Chapter No. 10 – Company Accounts (Redemption of Debentures)

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

  • Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)
  • Chapter No. 2 – Techniques of Financial Statement Analysis
  • Chapter No. 3 – Ratio Analysis 
  • Chapter No. 4 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 02 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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