Neil, Nitin and Nitesh were partners in the firm sharing profits and losses equally. Neil retiresfrom the firm and on his retirement, he is entitled for the payment due to him after all theadjustments.At the time of retirement, if nothing is mentioned about the payment made due to him, inwhich account, the amount will be transferred:(a) Retiring Partner’s Current A/c(b) Retiring Partner’s Capital A/c(c) Retiring Partner’s Loan A/c(d) Retiring Partner’s Bank A/c

Sandeep, Maheep and Amandeep were partners in a firm sharing profits in the ratio of 2: 2: 1. The firmcloses its books on 31st March every year. On 30th June, 2020Maheepdied. The partnership deedprovided that on the death of a partner his executors will be entitled to the following:a) Balance in his capital account which amounted to ₹1,15,000and interest on capital till date ofdeath which amounted to ₹5,000.b) His share in the profits of the firm till the date of his death amounted to ₹20,000.c) His share in the goodwill of the firm. The goodwill of the firm on Maheep’s death was valued at₹ 1,50,000.d) Loan to Maheep amounted ₹ 20,000.It was agreed that the amount will be paid to his executor in three equal yearly instalments w

Sandeep, Maheep and Amandeep were partners in a firm sharing profits in the ratio of 2: 2: 1. The firmcloses its books on 31st March every year. On 30th June, 2020Maheepdied. The partnership deedprovided that on the death of a partner his executors will be entitled to the following:a) Balance in his capital account which amounted to ₹1,15,000and interest on capital till date ofdeath which amounted to ₹5,000.b) His share in the profits of the firm till the date of his death amounted to ₹20,000.c) His share in the goodwill of the firm. The goodwill of the firm on Maheep’s death was valued at₹ 1,50,000.d) Loan to Maheep amounted ₹ 20,000.It was agreed that the amount will be paid to his executor in three equal yearly instalments with interest@10% p.a. The first instalment was to be paid on 30.06.2021.Calculate the amount to be transferred to Maheep’s executors Account and prepare theexecutor’s account till it is finally settled

Jack and Kelly are in partnership. They share profits and losses in the ratio of 2 : 5 respectively. The partners decided to admit Liam as a partner with effect from 1 July 2018. The partnership’s statement of financial position immediately prior to Liam’s admission was as follows. Jack and Kelly Summarised statement of financial position at 30 June 2018 $ Assets Non-current assets 91 400 Current assets 21 700 Total assets 113 100 Capital and liabilities Capital accounts Jack 33 000 Kelly 71 000 Current liabilities 9 100 Total capital and liabilities 113 100 The partners do not maintain separate current accounts. The following was agreed. 1 Assets were revalued upwards by $21 000. 2 Goodwill was valued at $52 500. No goodwill account was to be maintained in the partnership’s books of account. 3 In the future profits and losses would be shared in the ratio Jack : Kelly : Liam, 2 : 5 : 3 respectively. 4 The balances of the partners’ capital accounts immediately after Liam’s admission should total $120 000 and be in the same ratio as the profit sharing ratio. Each partner would either pay funds into, or withdraw funds from, the business bank account in order to achieve this requirement. REQUIRED (a) Prepare the partners’ capital accounts to record Liam’s admission as a partner on the next page. 9 © UCLES 2018 9706/22/O/N/18 [Turn over Partners’ Capital Accounts Liam $ [6] Kelly $ Jack $ Liam $ Kelly $ Jack $ 10 © UCLES 2018 9706/22/O/N/18 (b) State what is meant by the term ‘goodwill’. [1] (c) Explain why a partnership may make an adjustment for goodwill when they admit a new partner. [2] (d) Explain why partners may agree not to maintain a goodwill account in the books of the partnership on the admission of a new partner. [2] 11 © UCLES 2018 9706/22/O/N/18 [Turn over Additional information The partners forecast that profit for the year ending 30 June 2019 will be $60 000. This is an increase of 25% on the current year’s profit. The partners believe that Liam’s admission will result in an improved return on capital employed. REQUIRED (e) Advise the partners whether or not they are correct in believing that Liam’s admission will result in an improved return on capital employed in the year ending 30 June 2019. Support your answer with calculations. [4] [Total: 15]

Krish and Shail entered into a partnership on 1st October, 2022, with capital contributions of₹ 48,000 and ₹ 36,000 respectively.On 1st January, 2023, Shail advanced a loan of ₹ 12,000 to the firm.The terms of the partnership agreement are as follows:(a) Interest on Capital to be allowed at 12% per annum.(b) Interest on Drawings to be charged @ 10% per annum.(c) Krish to be entitled to a commission of 2% on the turnover.(d) Each partner to get a salary of ₹ 1,200 per month.(v) Profits and losses to be shared in the ratio of 4:3.The turnover for the period under consideration was ₹ 2,00,000.The drawings of the partners were: Krish ₹ 4,000; Shail ₹ 2,000.The profit of the firm for the year ended 31st March, 2023, before providing for any interestwas ₹ 1,10,000.You are required to prepare for the year 2022-23:(i) Profit and Loss Appropriation Account.

Mike and Ken were two partners sharing profits and losses in the ratio 4:3. Ken was in need offunds so he took a loan of Rs.50, 000 from the firm at an agreed rate of interest being 10% p.a. IfInterest is charged on loan to the partner it will be:(a) Debited to Profit and Loss A/c(b) Credited to Profit and Loss A/c(c) Debited to Profit and Loss Appropriation A/c(d) Credited to Profit and Loss Appropriation A/c