TS Grewal Solutions (2025 – 26) – Accounting for partnership firm – Fundamentals
1 :- In The absence of a Partnership Deed, State the provisions of the Partnership Act, 1932 relating to:
a) Salaries of Partners
b) Interest on partner’s capitals
c) Interest on loan by partner
d) Division of Profit,
e) Interest on partner’s drawings
f) Interest on Loan to partners
2 :- Mahesh, Ramesh, and Suresh are partners in a firm. They do not have a Partnership Deed. At the end of the first year of the Business, they faced the following problems:
a) Mahesh wants that interest on capital should be allowed to the partners but Ramesh and Suresh do not agree.
b) Ramesh wants that the partners should be allowed to draw salaries but Mahesh and Suresh do not agree.
c) Mahesh and Ramesh want that Suresh should pay interest on the loan given to him by the firm but Suresh does not agree.
d) Mahesh and Ramesh having contributed larger amounts of capital, desire that the profits should be distributed in the ratio of their capital contribution but Suresh does not agree.
State how will these disputes be settled.
3 :- Following difference has arisen among P, Q, and R. State who is correct in each case:
a) P used Rs 50,000 belonging to the firm and earned a profit of Rs 5,000. Q and R want the amount to be given to the firm.
b) Q used Rs 10,000 belonging to the firm and incurred a loss of Rs 1,000. He wants the firm to bear the loss.
c) P and Q want to purchase goods from Star Ltd. R does not agree.
d) Q and R want to admit W as a partner, but P does not agree.
e) R had given a loan of Rs 2,00,000 to the firm and demanded interest @ 10%. P and Q do not want to pay the interest.
4. Barun, Tarun, and Shivam are partners in a firm and do not have a partnership Deed. Barun introduced further capital of Rs 5,00,000 on 1st October, 2024. Whereas Shivam took a loan of ₹ Rs 50,000 from the firm on 1st October, 2024. Disputes have arisen among them on the following:
a) Barun demands interest @ 10% p.a. on Rs 5,00,000 being his extra capital.
b) Tarun desires that his son Deep should be admitted as a partner and he will give him half of his share. Barun and Shivam do not agree.
c) Barun and Tarun are of the view that Shivam should be charged interest on loans from the firm at the lending rate of the banks, which is 12% p.a.
d) Tarun has withdrawn Rs 50,000 from the firm for his personal use. Barun and Shivam are of the view that Tarun should be charged interest @ 10% p.a.
Give a Solution to each issue of dispute.
5 :- Harshad and Dhiman are in partnership since 1st April, 2024. No Partnership agreement was made. They contributed Rs 4,00,000 and Rs 1,00,000 respectively as capitals. In addition, Harshad had given a loan of Rs 1,00,000 to the firm on 1st October 2024. Due to a long illness, Harshad could not participate in business activities from 1st August 2024 to 30th September, 2024. Profit for the year ended 31st March, 2025 was Rs 1,80,000. A dispute has arisen between Harshad and Dhiman.
Harshad Claims:
i) He should be given interest @ 10% per annum on capital and loan,
ii) Profit should be distributed in the ratio of capital.
Dhiman Claims:-
i) Profits should be distributed equally;
ii) He should be allowed Rs 2,000 p.m. as remuneration for the period he managed the business in the absence of Harshad;
iii) Interest on Capital and loan should be allowed @ 6% p.a.
You are required to settle the dispute between Harshad and Dhiman. Also, prepare a Profit and Loss Appropriation Account.
Question 1 to 5 (Partnership Deed)
Question 6 to 8 (Interest on loan by partner to the firm)
Question 9 – 13 (Interest on Loan to the firm by Partner and Loan by the Firm to Partner)
Question 14 – 19 (Profit & Loss Appropriation Account)
Question 20 – 22 (Fixed Capital)
Question 23 to 25 (Fluctuating capital)
Question 26 (When interest on capital is an appropriation and profits are inadequate)
Question 27 to 31 (Calculation of interest on partners capital)
Question 32 to 35 (Salary or commission to partners)
Question 36 to 41 (Calculation of interest on partners drawings, amount of drawings and rate of interest on drawings)
Question 42 to 46 (Calculation of interest on partners drawings, amount of drawings and rate of interest on drawings)
Question 47 to 50 (Profit and loss appropriation account and partner’s capital account)
Question 51 to 53 (Transfer of profits to reserve)
Question 54 to 55 (Appropriations more than available profits)
Question 56 – (Adjusting and transfer entries)
Question 57 to 61 (Adjustments for incorrect appropriations in the past [past adjustments])
Question 62 to 66 (Adjustments for incorrect appropriations in the past)
Question 67 to 72 (Adjustments for incorrect appropriations in the past)
Question 73 to 75 (Adjustments for incorrect appropriations in the past)
Question 76 to 80 (Guarantee of minimum profit to a partner)
Question 81 to 85 (Guarantee of minimum profit to a partner)
Question 86 to 89 (Guarantee of minimum profits to a partner)
Question 90 – 91 (Minimum earnings guaranteed by a partner)