TS Grewal Solutions (2025 – 26) – Accounting for partnership firm – Fundamentals
47 :- Amit and Vijay started a partnership business on 1st April, 2024. Capital invested by them were Rs 2,00,000 and Rs 1,50,000 respectively. The partnership deed provided as follows:
- Interest on capital be allowed at 10%
- Amit to get a salary of Rs 2,000 per month and Vijay Rs 3,000 per month
- Profits are to be shared in the ratio of 3:2
Net profit for the year ended 31st March,2025 was Rs 2,16,000. Interest charged on drawings was Rs 2,200 for Amit and Rs 2,500 for Vijay.
Prepare Profit and loss appropriation account.
48 :- A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2024, their capitals were: A Rs 5,00,000 and B Rs 3,00,000. During the year ended 31st March, 2025. the firm earned a net profit of Rs 5,00,000. The terms of the partnership are:
- Interest on capital is to be allowed @6%pa
- A will get a commission @2% on net sales
- B will get a salary of Rs 5,000 per month
- B will get commission of 5% on profits after deduction of all expenses including such commission
Partner’s drawings for the year were : A Rs 80,000 and B Rs 60,000. Net sales for the year was Rs 30,00,000. After considering the above facts you are required to prepare P & L appropriation account and partner’s capital accounts
49 :- A, B, and C were partners in a firm having capitals of ₹Rs 50,000; ₹Rs 50,000, and ₹ Rs 1,00,000 respectively. Their Current Account balances were A: Rs 10,000; B: Rs 5,000 and C: Rs 2,000 (Dr.). According to the Partnership Deed, the partners were entitled to an interest on capital @ 10% p.a. C being the working partner was also entitled to a salary of ₹Rs 12,000 p.a. The profits were to be distributed as:
(a) The first Rs 20,000 in proportion to their capitals.
(b) Net Rs 30,000 in the ratio of 5 : 3 : 2.
(c) Remaining profits to be shared equally.
The firm earned a net profit of Rs 1,72,000 before charging any of the above items.
Prepare the Profit and Loss Appropriation Account and Pass the necessary Journal entry for the appropriation of profits.
50 :- Yadu, Vidu and Radhu were partners in a firm sharing profits in the ratio of 4:3:3. Their fixed capitals on 1st April, 2018 were Rs 9,00,000 , Rs 5,00,000 and Rs 4,00,000 respectively. On 1st November, 2018 Yadu gave loan of Rs 80,000 to the firm as per the partnership agreement
- The partners were entitled to an interest on capital @6% p.a.
- Interest on partner’s drawings was to be charged @8% p.a.
The firm earned a profit of Rs 2,53,000 ( after interest on Yadu’s loan) during the year 2018-19. Partner’s drawings for the year amounted to :
Yadu – Rs 80,000, Vidu – Rs 70,000 and Radhu – Rs 50,000
Prepare profit and loss appropriation account for the year ended 31st March, 2019
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)