TS Grewal Solutions (2025 – 26) – Accounting for partnership firm – Fundamentals
54 :- Neeraj and Surya are partners sharing profits and losses in the ratio of 2:1. Their capitals are Rs 4,00,000 and Rs 2,00,000 respectively. Neeraj is entitled to interest on capital @12% p.a. and Surya is entitled to salary of Rs 6,000 per month. Profit before providing for interest on capital and partner’s salary for the year ended 31st March, 2025 was Rs 50,000. Show the distribution of profits.
55 :- Kabir, Zoravar and Parul are partners sharing profits in the ratio of 5:3:2. Their capitals as on 1st April, 2024 were: Kabir – Rs 5,20,000, Zoravar – Rs 3,20,000 and Parul – Rs 2,00,000
The partnership deed provided as follows:
- Kabir and zoravar each will get salary of Rs 24,000 p.a.
- Parul will get commission of 2% of net sales
- Interest on capital is to be allowed @5% pa
- Interest on drawings is to be charged @5% pa
- 10% of divisible profit is to be transferred to general reserve
Net sales for the year ended 31st March, 2025 were Rs 50.00.000. Drawings by each of the partners during the year was Rs 60.000. Net profit for the year was 1.55.500.
Prepare profit and loss appropriation account for the year ended 31st March, 2025.
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)