CBSE Class 12 Accountancy — Accounting for Partnership: Basic Concepts

There are two statements Assertion (A) and Reason (R) : Assertion (A) : Partnership Agreement becomes the basis of relationship among the partners. Reason (R) : Partnership is the result of an agreement between two or more persons to do business and share its profits and losses. Choose the correct option from the following :

(a) Tarun and Tej were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1st April 2024, Tej had given a loan of Rs. 50,000 to the firm. The net profit of the firm before charging interest on loan was Rs. 3,75,000. The firm closes its books on 31st March every year. The amount of profit transferred from Profit and Loss Account to Profit and Loss Appropriation Account will be : (A) Rs. 3,75,000 (B) Rs. 3,72,000 (C) Rs. 4,25,000 (D) Rs. 3,78,000 OR (b) Ashok and Vasu were partners in a firm sharing profits and losses in the ratio of 4 : 3. Their capitals on 31st March, 2025 were Rs. 3,00,000 and Rs. 3,75,000 respectively. During the year ended 31st March, 2025 Vasu withdrew Rs. 40,000 for his personal use and introduced Rs. 1,50,000 as additional capital in the business. Profit of the firm for the year ended 31st March, 2025 was Rs. 1,40,000. Vasu's capital in the beginning of the year was : (A) Rs. 2,75,000 (B) Rs. 4,25,000 (C) Rs. 2,05,000 (D) Rs. 3,45,000

Tula, Ram and Madhvi were partners in a firm. The partnership deed provided for interest on partners drawings @ 12% p.a. The firm closes its books on 31st March every year. Starting from 31st December, 2025 Madhvi withdrew Rs. 40,000 at the end of every month for her personal use. Interest on Madhvi's drawings will be :