TS Grewal solutions : Accounting for partnership firms – Fundamentals
23 :- Anita and Ankita are partners sharing profits equally. Their capitals, maintained following Fluctuating Capital Accounts Method, as on 1st April, 2024 were Rs 5,00,000 and ₹ Rs 4,00,000 respectively. Partnership Deed Provided to allow interest on capital @ 10% p.a. The firm earned a net profit of Rs 2,00,000 for the year ended 31st March, 2025. Pass the journal entry for interest on capital.
24 :- Ashish and Aakash are partners sharing profits in the ratio of 3 : 2. Their Capital Accounts had credit balances of Rs 5,00,000 and Rs 6,00,000 respectively as on 31st March, 2025 after the debit of drawings during the year of Rs 1,50,000 and Rs 1,00,000 respectively. Net profit for the year ended 31st March, 2025 was Rs 5,00,000. Interest on capital is to be allowed @ 10% p.a. Pass the journal entry for interest on capital and prepare P & L Appropriation A/c.
25 :- Naresh and Sukesh are partners with Capitals of Rs 3,00,000 each as on 31st March, 2025. Naresh and withdrew Rs 50,000 against capital on 1st October, 2024 and Rs 1,00,000 drawings against profit. Sukesh also had drawings of Rs 1,00,000.
Interest on capital is to be allowed @10% p.a.
Net profit for the year ended was Rs 2,00,000 which is yet to be distributed.
Pass the journal entries for interest on capital and distribution of profit.
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)