TS Grewal Solutions (2025 – 26) – Accounting for partnership firm – Fundamentals
20 :- Amit and Sumit entered into a partnership on 1st April 2024 and invested Rs 1,50,000 and Rs 2,50,000 respectively as capital. The Partnership Deed provided for interest on capital @ 10% p.a. It also provided that Capital Accounts shall be maintained following the Fixed Capital Accounts Method. The firm earned a net profit of Rs 1,00,000 for the year ended 31st March, 2025. Pass the journal entry for interest on capital.
21 :- Kamal and Kapil are partners having fixed capitals of Rs 5,00,000 each as on 1st April, 2024. Kamal introduced further capital of Rs 1,00,000 on 1st January, 2025 whereas Kapil withdrew ₹ Rs 1,00,000 on 1st January 2025 out of capital.
Interest on capital is to be allowed @10% p.a.
The firm earned net profit of Rs 6,00,000 for the year ended 31st March, 2025.
Pass the journal entry for interest on capital and prepare Profit and Loss Appropriation Account.
22 :- Simran and Reema are partners sharing profits in the ratio of 3 : 2. Their capitals as on 1st April, 2024 were Rs 2,00,000 each whereas Current Accounts had balances of Rs 50,000 and ₹ Rs 25,000 respectively. Interest on capital is to be allowed @ 5% p.a. Net Profit of the firm for the year ended 31st March, 2025 was Rs 3,00,000.
Pass the Journal entries for interest on capital and distribution of profit. Also prepare Profit and Loss Appropriation Account for the year.
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)