TS Grewal Solutions (2025 – 26) – Accounting for partnership firm – Fundamentals
14 :- Vinod and Mohan are partners. Vinod’s Capital is Rs 1,00,000 and Mohan’s Capital is ₹ Rs 60,000. Interest on Capital is payable @ 6% p.a. Vinod is to get a salary of Rs 3,000 per month. Net Profit for the year is Rs 80,000. Prepare profit and loss appropriation account.
15 :- X, Y, and Z are partners in a firm sharing profits in the ratio of 2 : 2 : 1. Fixed Capitals of the partners were: X : Rs 5,00,000; Y : Rs 5,00,000 and Z : Rs 2,50,000 respectively. The Partnership Deed provides that interest on capital is to be allowed @ 10% p.a. Z is to be allowed a salary of ₹ Rs 20,000 per month. Profit of the firm for the year ended 31st March, 2025, after Z’s salary was Rs 4,00,000. Prepare Profit and Loss Appropriation Account.
16 :- X and Y are partners sharing profits in the ratio of 3 : 2 with capitals of Rs 8,00,000 and Rs 6,00,000 respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an annual salary of Rs 60,000 which has not been withdrawn. Profit for the year ended 31st March, 2025 before interest on capital but after charging Y’s salary was Rs 2,40,000. A provision of 5% of the net profit is to be made in respect of commission to the manager.
Prepare profit & loss appropriation account showing the allocation of profits.
17:- Atul and Mithun are partners sharing profits in the ratio of 3 : 2. Balances as on 1st April, 2024 were as follows:
Capital accounts (fixed): Atul – Rs 5,00,000 and Mithun – Rs 6,00,000
Loan accounts : Atul – Rs 3,00,000(Cr.) and Mithun – Rs 2,00,000 (Dr.)
It was agreed to allow and charge interest @8% p.a. Partnership deed provided to allow interest on capital @10% pa. interest on drawings was charged Rs 5,000 each.
Profit before giving effect to above was Rs 2,28,000 for the year ended 31st March, 2025.
Prepare profit and loss appropriation Account.
18 :- Reema and Seema are partners sharing profits equally. The partnership deed provides that both Reema and Seema will get monthly salary of Rs 15,000 each, Interest on capital will be allowed @5% pa. and interest on drawings will be charged @10% pa. Their capitals were Rs 5,00,000 each and drawings during the year were Rs 60,000 each.
The firm incurred net loss of Rs 1,00,000 during the year ended 31st March, 2025
Prepare profit and loss appropriation for the year ended 31st March, 2025
19 :- Bhanu and Partap are partners sharing profits equally. Their fixed capitals as on 1st April, 2024 were Rs 8,00,000 and Rs 10,00,000 respectively. Their drawings during the year were ₹ Rs 50,000 and Rs 1,00,000 respectively. Interest on Capital is a charge and is to be allowed 10% p.a. and interest on drawings is to be charged @ 15% p.a. Net Profit for the year ended 31st March, 2025 before giving effect to the above) was Rs 1,20,000.
Prepare 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)