DARSHAN ACADEMY

VACATION ASSIGNMENT – 2025-26

CLASS: -– XII SUBJECT: ACCONTANCY

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General Instructions:

 Make one file for keeping these assignments.

 Use A4 size sheets for completing the assignments.
 Submission on rejoining after summer vacation.

Cover Page :
 Title : Grade XII Accountancy Summer Assignment
 Subtitle : Chapters Name – Fundamentals of Partnership, Goodwill Valuation and Change in Profit and
Sharing Ratio.
 Your Name, Class, Roll Number, and School Name

CHAPTER 1 – FUNDAMENTAL OF ACCOUNTING

ASSIGNMENT 1 – MCQ QUESTIONS

1 If the partnership deed is silent interest on drawings will be charged @

(A) 6% P.a (B) 6% P.m (C) Any other Rate (D) Will not be charged

2 Which is not the clause of the Partnership Deed?

(A) Business can be carried on by all or any of the partner’s acting for all. (B) Commencement of
business. (C) Rights & Duties of Partner. (D) None of the above

3. The Net profits of Kamini were Rs. 20,000. Gulafsa the manager was to be given the commission of Rs
6,000; the distribution of profits will be done as:
(A) Rs. 10,000 to each. (B) Rs. 7,000 to each. (C) Rs. 13,000 to each. (D) None of the above

4. Shalu, Shan& Julie are partners sharing profits in the ratio of 6 : 4 : 1. Julie is guaranteed a minimum
profit of Rs. 20,000. The firm incurred a loss of Rs. 2,20,000 for the year ended 31st March, 2021. What
amount of deficiency will be borne by Shaluand Shan.
(A) Rs. 10,000 each. (B) Rs. 20,000 each. (C) Rs. 24,000 by Shalu& Rs. 16,000 by Shan. (D) Rs. 12,000
by Shalu& Rs. 8,000 by Shan.

5 Om & Prakash were partner’s without any deed where Prakash invested the total capital and Om had the
complete hold on the business as Prakash was the sleeping partner, but as Prakash invested complete
capital demanded to share the profits in the Ratio of 5 : 1 and Om object’s to this.

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 (A) Om’s objection is correct. (B) Prakash’s demand is correct. (C) Both are wrong. (D) As investment
is of Prakash he should be given interest on capital.

6. Following are essential elements of a partnership firm except:

(A) At least two persons. (B) There is an agreement between all partners. (C) Equal share of profits and
losses. (D) Partnership agreement is for some business.

7. Which of the following items is not dealt through Profit and Loss Appropriation Account? (A)Interest
on Partner’s Loan (B) Partner’s Salary (C)Interest on Partner’s Capital (D)Partner’s Commission

8. A partner withdrew Rs. 4,000 per month from 1st July, 2016, on beginning of every month. Accounts
are closed at 31st March, 2017. Calculate interest on drawings while rate of interest is 10% per annum.
(A) Rs. 1,600 (B) Rs. 1,800 (C) Rs. 1,500 (D)2200

CHAPTER 1 – FUNDAMENTAL OF ACCOUNTING

ASSIGNMENT 2– MCQ QUESTIONS

1. A, B and C sharing profits in the ratio of 2: 2: 1 have fixed capitals of Rs. 3,00,000, Rs. 2,00,000 and Rs.
1,00,000 respectively. After closing the accounts for the year ending 31st March 2019 it was discovered
that interest on capitals was provided @12% instead of 10% p.a. In the adjusting entry:
(A) Cr. A Rs. 1,200; Dr. B Rs. 800 and Dr. C Rs. 400
(B) Dr. A Rs. 1,200; Cr. B Rs. 800 and Cr. C Rs. 400
(C) Cr. A Rs. 800; Cr. B Rs. 400 and Dr. C Rs. 1,200
(D) Dr. A Rs. 800; Dr. B Rs. 400 and Cr. C Rs. 1,200

2. A partner withdraws Rs.8,000 each on 1st April and 1st Oct. Interest on his drawings @ 6% p.a. on 31st
March will be: (A) Rs. 480 (B) Rs.720 (C) Rs. 240 (D) Rs. 960

3. Rani and Shyam is partner in a firm. They are entitled to interest on their capital but the net profit was
not sufficient for paying his interest, then the net profit will be disturbed among partner in a. 1:2 b. profit
sharing ratio c. capital ratio d. equally

4 Which one of the following items is recorded in the Profit and Loss appropriation account
a. Interest on loan b. Partner Salary c. Rent paid to Partner d. Managers commission

5 Salary to a partner under fixed capital account is credited to

a. Partner’s Capital A/c b. Partner’s current A/c c. Profit & Loss A/c d. Partner’s Loan A/c

6 In the absence of partnership deed partner share profit and loss in

a). Ratio of Capital Employed b). Equal ratio c). 2:1 d). 1:2

7 A, B, and C are partner’s sharing profits in the ratio of 5:3:2According to the partnership agreement C is
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 to get a minimum amount of Rs. 10,000 as his share of profits every year. The net profit for the year
ended 31st March, 2019 amounted to Rs. 40,000. How much amount contributed by A? a. Rs. 1.350 b.
Rs . 1,250 c. Rs. 750 d. Rs. 1,225

8 The relation of the partner with the firm is that of

a). An owner b). An agent and A Principal c). An agent d). Manager

9 If the partner carries on the business that is similar to firm competition with the firm and profit earned
from it, the profit a. Shall be retained by the partner b. Shall be paid to firm c. Can be retained or gained
to the firm d. Both (A) and (B)

10 Closing entry for interest on loan allowed to partners

a. Interest on partner’s loan …Dr. To Profit and Loss A/c
b. Interest on loan …Dr. To Profit and Loss Appropriation A/c
c. Profit and Loss Appropriation A/c …Dr. To interest on partner’s loan A/c
d. Profit and Loss Appropriation A/c …Dr. To interest on loan A/c

CHAPTER 1 – FUNDAMENTAL OF ACCOUNTING

ASSIGNMENT 3– PRACTICAL PROBLEMS

1. A and B are partners sharing Profit and Loss in the ratio of 3 : 2 having Capital Account balances of Rs.
50,000 and Rs. 40,000 on 1st April, 2018. On 1st July, 2018, A introduced Rs. 10,000 as his additional
capital whereas B introduced only Rs. 1,000. Interest on capital is allowed to partners @ 10% p.a. Calculate
interest on capital for the financial year ended 31st March, 2019.

2. Ram and Mohan are partners in a business. Their capitals at the end of the year were Rs. 24,000 and Rs.
18,000 respectively. During the year, Ram’s drawings and Mohan’s drawings were Rs. 4,000 and Rs. 6,000
respectively. Profit (before charging interest on capital) during the year was Rs. 16,000. Calculate interest
on capital @ 5% p.a. for the year ended 31st March, 2019.

3. Pranshu and Himanshu are partners sharing profits and losses in the ratio of 3 : 2 respectively. They admit
Anshu as partner with 1/6 share in the profits of the firm. Pranshu personally guaranteed that Anshu’s share
of profit would not be less than Rs. 30,000 in any year. The net profit of the firm for the year ending 31st
March, 2013 was Rs. 90,000. Prepare Profit & Loss Appropriation Account.

4. Ankur and Bobby were into the business of providing software solutions in India. They were sharing profits
and losses in the ratio 3 : 2. They admitted Rohit for a 1/5 share in the firm. Rohit, an alumni of IIT,
Chennai would help them to expand their business to various South African countries where he had been
working earlier. Rohit is guaranteed a minimum profit of Rs. 2,00,000 for the year. Any deficiency in
Rohit’s share is to be borne by Ankur and Bobby in the ratio 4 : 1. Loss for the year was Rs. 10,00,000.
Pass the necessary Journal entries.

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 5. Anita, Bimla and Cherry are three partners. On 1st April, 2019, their Capitals stood as: Anita Rs. 1,00,000,
Bimla Rs. 2,00,000 and Cherry Rs. 3,00,000. It was decided that: (a) they would receive interest on
Capitals @ 5% p.a., (b) Anita would get a salary of Rs. 5,000 per month, (c) Bimla would receive
commission @ 5% of net profit after deduction of commission, and (d) 10% of the divisible profit would be
transferred to the General Reserve. Before the above items were taken into account, the profit for the year
ended 31st March, 2020 was Rs. 5,00,000. Prepare Profit & Loss Appropriation Account and the Capital
Accounts of the Partners

CHAPTER 1 – FUNDAMENTAL OF ACCOUNTING

ASSIGNMENT 4– PRACTICAL PROBLEMS

1) A, B and C were partners. Their capitals were A—Rs. 30,000; B—Rs. 20,000 and C—Rs. 10,000
respectively. According to the Partnership Deed, they were entitled to an interest on capital @ 5% p.a. In
addition, B was also entitled to draw a salary of Rs. 500 per month. C was entitled to a commission of
5% on the profits after charging the interest on capital, but before charging the salary payable to B. The
net profit for the year were Rs. 30,000 distributed in the ratio of capitals without providing for any of the
above adjustments. The profits were to be shared in the ratio of 5 : 3 : 2. Pass necessary adjustment entry
showing the workings clearly.

2) Gian, Rajat and Bishan are partners sharing profits equally. Gian drew regularly Rs. 10,000 in the
beginning of every month for six months ended 30th September, 2019. Rajat drew regularly Rs. 10,000
at the end of every month for six months ended 30th September, 2019. Bishan drew regularly Rs. 10,000
in the middle of every month for six months ended 30th September, 2019. Calculate interest on drawings
@ 5% p.a. for the year ended 31st March, 2020.

3) Prem and Manoj are partners in a firm sharing profits in the ratio of 3 : 2. The Partnership Deed
provided that Prem was to be paid salary of Rs. 2,500 per month and Manoj was to get a commission of
Rs. 10,000 per year. Interest on capital was to be allowed @ 5% p.a. and interest on drawings was to be
charged @ 6% p.a. Interest on Prem’s drawings was Rs. 1,250 and on Manoj’s drawings was Rs. 425.
Interest on Capitals of the partners were Rs. 10,000 and Rs. 7,500 respectively. The firm’s net profit for
the year ended 31st March, 2020 was Rs. 90,575. Prepare Profit & Loss Appropriation Account of the
firm.

4) Kanika and Gautam are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio 2
: 1 with capitals Rs. 5,00,000 and Rs. 4,00,000 respectively. Kanika withdrew the following amounts
during the year to pay the hostel expenses of her son: 1st April Rs. 10,000 1st June Rs. 9,000 1st
November Rs. 14,000 1st December Rs. 5,000 Gautam withdrew Rs. 15,000 on the first day of April,
July, October and January to pay rent for the accommodation of his family. He also paid Rs. 20,000 per
month as rent for the office of partnership which was in a nearby shopping complex. Calculate interest
on drawings @ 6% p.a. (CBSE Sample Paper 2015)

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 5) C and D are partners in a firm; C has contributed Rs. 1,00,000 and D Rs. 60,000 as capitals. Interest is
payable @ 6% p.a. and D is entitled to salary of Rs. 3,000 per month. In the year ended 31st March,
2021, the profit was Rs. 80,000 before interest and salary. Prepare Profit & Loss Appropriation Account.

CHAPTER 2 – GOODWILL VALUATION

ASSIGNMENT 5 – PRACTICAL PROBLEMS

1. Dinesh and Mahesh are partners sharing profits and losses in the ratio of 3 : 2. They admit Ramesh into
partnership for 1/4th share in profits. Ramesh brings in his share of goodwill in cash. Goodwill for this
purpose shall be calculated at two years’ purchase of the weighted average normal profit of past three
years. Weights being assigned to each year 2017–1; 2018–2 and 2019–3. Profits of the last three years
were: 2017—Profit Rs. 50,000 (including profits on sale of assets Rs. 5,000). 2018—Loss Rs. 20,000
(including loss by fire Rs. 35,000). 2019—Profit Rs. 70,000 (including insurance claim received Rs.
18,000 and interest on investments and dividend received Rs. 8,000). Calculate the value of goodwill.
Also, calculate the goodwill brought in by Ramesh.

2. Manbir and Nimrat are partners and they admit Anahat into partnership. It was agreed to value goodwill
at three years’ purchase on Weighted Average Profit Method taking profits of last five years. Weights
assigned to each year as 1, 2, 3, 4 and 5 respectively to profits for the year ended 31st March, 2015 to
2019. The profits for these years were: Rs. 70,000, Rs. 1,40,000, Rs. 1,00,000, Rs. 1,60,000 and Rs.
1,65,000 respectively. Scrutiny of books of account revealed following information:
(i) There was an abnormal loss of Rs. 20,000 in the year ended 31st March, 2015.
(ii) There was an abnormal gain (profit) of Rs. 30,000 in the year ended 31st March, 2016.
(iii) Closing Stock as on 31st March, 2018 was overvalued by Rs. 10,000. Calculate the value of
goodwill.

3. Mahesh and Suresh are partners and they admit Naresh into partnership. They agreed to value goodwill
at three years’ purchase on Weighted Average Profit Method taking profits for the last five years. They
assigned weights from 1 to 5 beginning from the earliest year and onwards. The profits for the last five
years were as follows: Year Ended 31st March, 2015 31st March, 2016 31st March, 2017 31st March,
2018 31st March, 2019 Profits (Rs.) 1,25,000 1,40,000 1,20,000 55,000 2,57,000 Scrutiny of books of
account revealed the following:
(i) A second-hand machine was purchased for Rs. 5,00,000 on 1st July, 2017 and Rs. 1,00,000 were
spent to make it operational. Rs. 1,00,000 were wrongly debited to Repairs Account. Machinery is
depreciated @ 20% p.a. on Written Down Value Method.
(ii) Closing Stock as on 31st March, 2018 was undervalued by Rs. 50,000.
(iii) Remuneration to partners was to be considered as charge against profit and remuneration of Rs.
20,000 p.a. for each partner was considered appropriate. Calculate the value of goodwill.

CHAPTER 2 – GOODWILL VALUATION

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ASSIGNMENT 6 – PRACTICAL PROBLEMS

1. Calculate the goodwill of a firm on the basis of three years’ purchase of the weighted average profit of
the last four years. The appropriate weights to be used and profits are: Year 2015–16 2016–17 2017–18
2018–19 Profits (Rs.) 1,01,000 , 1,24,000, 1,00,000, 1,40,000 Weights 1 2 3 4 On a scrutiny of the
accounts, the following matters are revealed:
(i) On 1st December, 2017, a major repair was made in respect of the plant incurring Rs. 30,000 which
was charged to revenue. The said sum is agreed to be capitalized for goodwill calculation subject to
adjustment of depreciation of 10% p.a. on Reducing Balance Method.
(ii) The closing stock for the year 2016–17 was overvalued by Rs. 12,000.
(iii) To cover management cost, an annual charge of Rs. 24,000 should be made for the purpose of
goodwill valuation.
(iv) On 1st April, 2016, a machine having a book value of Rs. 10,000 was sold for Rs. 11,000 but the
proceeds were wrongly credited to Profit and Loss Account. No effect has been given to rectify the
same. Depreciation is charged on machine @ 10% p.a. on reducing balance method.

2. A and B are partners sharing profits and losses in the ratio of 5 : 3. On 1st April, 2019, C is admitted to
the partnership for 1/4th share of profits. For this purpose, goodwill is to be valued at two years’
purchase of last three years’ profits (after allowing partners’ remuneration). Profits to be weighted 1 : 2 :
3, the greatest weight being given to last year. Net profit before partners’ remuneration were: 2016–17:
Rs. 2,00,000; 2017–18: Rs. 2,30,000; 2018–19: Rs. 2,50,000. The remuneration of the partners is
estimated to be Rs. 90,000 p.a. Calculate amount of goodwill.

3. A partnership firm earned net profits during the past three years as follows: Year Ended 31st March,
2019 31st March, 2018 31st March, 2017 Net Profit (Rs.) 2,30,000 2,00,000 1,70,000 Capital
investment in the firm throughout the above-mentioned period has been Rs. 4,00,000. Having regard to
the risk involved, 15% is considered to be a fair return on the capital. The remuneration of the partners
during this period is estimated to be Rs. 1,00,000 p.a. Calculate value of goodwill on the basis of two
years’ purchase of average super profit earned during the above-mentioned three years.

4. Supreet and Subham are equal partners. They decide to admit Akriti for 1/3rd share. For the purpose of
admission of Akriti, goodwill of the firm is to be valued at four years’ purchase of super profit. Average
capital employed in the firm is Rs. 1,50,000. Normal rate of return may be taken as 15% p.a. Average
profit of the firm is Rs. 40,000. Calculate value of goodwill.

CHAPTER 2 – GOODWILL VALUATION

ASSIGNMENT 7 – PRACTICAL PROBLEMS

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1. A firm earns Rs. 3,00,000 as its annual profit, the rate of return being 12%. Assets and liabilities of the
firm amounted to Rs. 36,00,000 and Rs. 12,00,000 respectively. Calculate value of goodwill by
Capitalisation Method.

2. Average profits of the firm are Rs. 3,00,000. Total tangible assets in the firm are Rs. 28,00,000 and
outside liabilities are Rs. 8,00,000. In the same type of business, the normal rate of return is 10% of the
capital employed. Calculate the value of goodwill by Capitalisation of Super Profit Method.
3. Average profit of the firm is Rs. 2,00,000. Total assets of the firm are Rs. 15,00,000 whereas Partners’
Capital is Rs. 12,00,000. If normal rate of return in a similar business is 10% of the capital employed,
what is the value of goodwill by Capitalisation of Super Profit?

4. Geet and Meet are partners in a firm. They admit Jeet into partnership for equal share. It was agreed that
goodwill will be valued at three years’ purchase of average profit of last five years. Profits for the last
five years were: Year Ended 31st March, 2016 31st March, 2017 31st March, 2018 31st March, 2019
31st March, 2020 Profits (Rs.) 90,000 (Loss) 1,60,000 1,50,000 65,000 1,77,000 Books of Account of
the firm revealed that: (i) The firm had gain (profit) of Rs. 50,000 from sale of machinery sold in the
year ended 31st March, 2017. The gain (profit) was credited in Profit and Loss Account. (ii) There was
an abnormal loss of Rs. 20,000 incurred in the year ended 31st March, 2018 because of a machine
becoming obsolete in accident. (iii) Overhauling cost of second hand machinery purchased on 1st July,
2018 amounting to Rs. 1,00,000 was debited to Repairs Account. Depreciation is charged @ 20% p.a.
on Written Down Value Method. Calculate the value of goodwill.

5. Rakesh and Ashok earned profit of Rs. 5,000. They employed capital of Rs. 25,000 in the firm. It is
expected that the normal rate of return is 15% of the capital. Calculate amount of goodwill if goodwill is
valued at three years’ purchase of super profit.

6. Capital of the firm of Sharma and Verma is Rs. 2,00,000 and the market rate of interest is 15%. Annual
salary to partners is Rs. 12,000 each. The profits for the last three years were Rs. 60,000; Rs. 72,000 and
Rs. 84,000. Goodwill is to be valued at 2 years’ purchase of last 3 years’ average super profit. Calculate
goodwill of the firm.
7. From the following information, calculate value of goodwill of the firm by applying Capitalisation
Method: Total Capital of the firm Rs. 24,00,000. Normal rate of return 10%. Profit for the year Rs.
3,00,000.

CHAPTER 3 – CHANGE IN PROFIT SHARING RATIO

ASSIGNMENT 8 – MCQ

1 The ratio in which a partner receives a rise in his share of profits is known as: A. New Ratio B.
Sacrificing Ratio C. Capital Ratio D. Gaining Ratio

2 Sacrificing ratio is the difference between : A. New ratio and old ratio B. Old ratio and new ratio C.
New ratio and gaining ratio D. Old ratio and gaining ratio

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3 In case of change in profit-sharing ratio, the accumulated profits are distributed to the partners in A. new
ratio B. old ratio C. sacrificing ratio D. equal ratio

4 Ajay,Bijay and Sujay are partners sharing profits and losses in the ratio of 5:3:2.They decide to share the
future profits in the ratio of 3:2:1. Workmen compensation reserve appearing in the balance sheet on the
date if no information is available for the same will be:
A. Distributed among the partners in old profit sharing ratio
B. Distributed among the partners in new profit sharing ratio
C. Distributed among the partners in capital ratio
D. Carried forward to new balance sheet without any adjustment

5 Alok and Bhupesh are partners in a firm sharing profits in the ratio of 3 : 2. They decided to share future
profits equally. Calculate Alok’s gain or sacrifice
A. 2/10 (sacrifice) B. 5/10 (gain) C.1/10 (Gain) D.1/10 (sacrifice)

6 A, B and Care partner sharing profits in the ratio of 2 : 4 : 6. On 1-4-2022 theydecided to share the
profits equally. On the date there was a credit balance of Rs.1,20,000 in their Profit and Loss Account
and a balance of Rs.1,80,000 in GeneralReserve Account. Instead of closing the General Reserve
Account and Profit andLoss Account, it is decided to record an adjustment entry for the same. In
thenecessary adjustment entry to give effect to the above arrangement:
A. Dr. A by Rs. 50,000; Cr. B by Rs. 50,000
B. Cr. A by Rs. 50,000; Dr. B by Rs. 50,000
C. Dr. A by Rs. 50,000; Cr. C by Rs. 50,000
D.Cr. A by Rs. 50,000; Dr. C by Rs. 50,000

CHAPTER 3 – CHANGE IN PROFIT SHARING RATIO

ASSIGNMENT 9 – MCQs

1 Which section of Indian Partnership Act, 1932 defines partnership as "Partnership is the relation
between persons who have agreed to share the profits of a business carried by all or any of them acting
for all." A. Section 4 B. Section 2 C. Section 40 D. Section 42

2 Feature of a partnership firm:

A. Two or more persons are carrying common business under an agreement.
B. They are sharing profits and losses in the fixed ratio.
C. Business is carried by all or any of them acting for all as an agent.
D. All of these

3 Which one from the below is not a right of a partner?

A. Right to inspect the books of accounts
B. Right to take part in the management of the firm
C. Right to share the profit/losses with other partners in agreed ratio
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 D. Right to receive salary at the end of every year

4 P, Q, and R are partners in 6 : 4 : 2. R is guaranteed that his share of profit will not be less than
rs.70,000. Any deficiency will be borne by P and Q in the ratio of 4 : 2. Firm’s profit was rs.2,40,000.
Share of P will be :
A. Rs.1,00,000 B. Rs.1,10,000 C. Rs.1,20,000 D. Rs.1,02,000

5 Any change in the relationship of existing partners, resulting in the end of existing agreement and
formation of new agreement is termed as
(A) Revaluation of partnership (B)Realisation of partnership (C) Reconstitution of partnership firm (D)
Reconstitution of partnership

6 Which of the following is not transferred to partners’ capital accoumt? (A) Retained earnings (B)
General Reserve (C) Employees Provident Fund (D) Contingency Reserve

7 State the ratio in which the partners share all the accumulated profits, reserves, losses at the time of
change in profit sharing ratio. (A) Old profit sharing ratio (B) New profit sharing ratio (C)Sacricing ratio
(D) Gaining ratio

CHAPTER 3 – CHANGE IN PROFIT SHARING RATIO

ASSIGNMENT 10 – MCQ

1 Which of the following statement is correct for Revaluation account?

(A) Increase in the value of an asset is credited to Revaluation account
(B) Increase in the amount of a liability is debited to Revaluation account
(C) Decrease in the value of an asset is credited to Revaluation account

(D) Decrease in the amount of a liability is credited to Revaluation account

2 Sacrificing ratio is calculated as
(A) New ratio – Old ratio (B) Old ratio – Gaining ratio
(C) Gaining ratio – Old ratio (D) Old ratio – New ratio

3 Ankita and Neha are sharing profits in the ratio of 2:1. Now they have decided that new profit sharing
ratio will be equal. What will be the Gain/Sacrifice ratio?
(A) Ankita gain 1/6 and Neha sacrifice 1/6
(B) Ankita sacrifice 1/6and Neha gain 1/6
(C) Ankita gain 4/5 and Neha sacrifice 4/5
(D)Ankita sacrifice 2/3 and Neha gain 1/6

4. Sanjeev and Shalu were partners sharing profits in the ratio of 3:2. From 1stApril 2020, they decided to
change it to 3:1. For this purpose the goodwill was valued at ₹ 1,20,000. Journal entry for the above
transaction will be
(A) Sanjeev capital A/c debit ₹20,000 and Shalu capital A/c credit ₹20,000
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 (B)Shalu capital A/c debit ₹20,000 and Sanjeev capital A/c credit ₹20,000
(C) Sanjeev capital A/c debit ₹18,000 and Shalu capital A/c credit ₹18,000
(D)Shalu capital A/c debit ₹18,000 and Sanjeev capital A/c credit ₹18,000

5 Sun, Moon and Star are partners sharing profits in the ratio of 5:3:2. With effect from 1st July 2020, they
agreed to share future profits 2:3:5. They decided to record the following with affecting the values.
Profit & Loss A/c (Cr.) - ₹24,000 Advertisement Suspense A/c - ₹12,000
What is the impact of the above adjustments on Moon?
(A) No effect on Moon
(B) Moon debit by ₹ 3,600
(C) Moon credit by ₹ 3,600
(D) Moon debit by ₹ 12,000

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