TS Grewal Solutions (2025 – 26) – Accounting for partnership firm – Fundamentals
27 :- A and B are partners in the ratio of 3 : 2. The firm maintains Fluctuating Capital Accounts and the balance of the same as on 31st March, 2020 amounted to Rs 1,60,000 ad ₹ Rs 1,40,000 for A and B respectively. Their drawings during the year were Rs 30,000 each. As per partnership deed, interest on capital @10% p.a. on opening capitals had been provided to them. Calculate the opening capital of partners given that their profit was Rs 90,000. Show your working clearly.
28 :- Vinod and Mohan are partners sharing profits and losses in the ratio of 4:3. From the following balance sheet, calculate interest on capital @6% p.a. for the year ended 31st March, 2025:
During the year, Vinod’s drawings were Rs 20,000 and Mohan’s drawings were Rs 12,000. Profit during the year was Rs 64,000.
29 :- From the following balance sheet of Long and Short, calculate interest on capital @8% p.a. for the year ended 31st March, 2025;
During the year, Long withdrew Rs 40,000 and short withdrew Rs 50,000. Profit for the year was Rs 1,50,000 out of which Rs 1,00,000 was transferred to general reserve.
30 :- Amit and Bramit started business on 1st April, 2024 with capitals of Rs 15,00,000 and ₹ Rs 9,00,000 respectively. On 1st October, 2024, they decided that their capital should be Rs 12,00,000 each. The necessary adjustments in the capital were made by introducing or withdrawing by cheque. Interest on capital is allowed @ 8% p.a. Compute interest on capital for the year ended 31st March, 2025.
31 :- Sumit and Namit are partners sharing profits in the ratio of 3:2. They contribute Rs 1,00,000 and Rs 50,000 respectively towards capital. Compute interest on capital and show distribution of profit i the following cases:
(i) When partnership deed was silent as to the interest on capital @10% p.a. and profit for the year is Rs 50,000.
(ii) When partnership Deed provides for interest on capital @10% p.a. and the profit for the year is Rs 15,000.
(iii) When the partnership deed provides for interest on capital @12% and profit for the year is Rs 23,000.
(iv) When the partnership Deed provides for interest @5% p.a. and loss for the year is Rs 8,000.
(v) When partnership deed provides for interest on capital @5% p.a. and profit for the year is Rs 3,000.
(vi) When partnership deed provides for interest on capital @5% p.a. even if it involves the firm in loss and the profit for the year is Rs 6,000.
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)