TS Grewal Solutions (2025 – 26) – Accounting for partnership firm – Fundamentals
62:- Ram, Mohan and Sohan were partners sharing profits in the ratio of 2:1:1. Ram withdrew Rs 3,000 every month and Mohan withdrew Rs 4,000 every month. Interest on drawings @6% p.a.was charged, whereas the partnership deed was silent about interest on drawings.
Showing your working clearly, pass the necessary adjustment entry to rectify the error.
63 :- Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3:2. On 31st March, 2025 after closing the books of account, their capital accounts were Rs 4,80,000 and Rs 6,00,000 respectively. On 1st May, 2024, Simrat introduced additional capital of Rs 1,20,000 and Bir withdrew Rs 60,000 from his capital. On 1st October, 2024, Simrat withdrew Rs 2,40,000 from her capital and Bir introduced Rs 3,00,000. Interest on capital is allowed at 6% p.a. Subsequently, it was noticed that interest on capital @6% p.a. had not been allowed. Profit for the year ended 31st March, 2025 was Rs 2,40,000 and the partners drawings were:
Simrat – Rs 1,20,000 and Bir – Rs 60,000
Compute the interest on capital if the capitals are (a) fixed, and (b) fluctuating
64 :- Mita and Usha are partners in a firm sharing profits in the ratio of 2:3. Their capital accounts as on 1st April, 2015 showed balances of Rs 1,40,000 and Rs 1,20,000 respectively. The drawings of Mita and Usha during the year 2015-16 were Rs 32,000 and Rs 24,000 respectively. Both the amounts were withdrawn on 1st January, 2016. It was subsequently found that the following items had been omitted while preparing the final accounts for the year ended 31st March, 2016:
- Interest on capital @6% p.a.
- Interest on drawings @6% p.a.
- Mita was entitled to a commission of Rs 8,000 for the whole year.
Showing your working clearly, pass a rectifying entry in the books of the firm.
65 :- A, B and C were partners. Their fixed capitals were Rs 60,000, Rs 40,000 and Rs 20,000 respectively. Their profit-sharing ratio was 2:2:1. According to the partnership deed, they were entitled to interest on capital @5% p.a. In addition, B was also entitled to draw a salary of Rs 1,500 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital, but before charging the salary payable to B. The net profits for the year, Rs 80,000 were distributed in the ratio of their capitals without providing for any of the above adjustments. Showing your workings clearly, pass the necessary adjustment entry.
66 :- Pranav, Karan and Rahim were partners sharing profits in the ratio of 3:2:1. Their capitals were Rs 5,00,000, Rs 3,00,000 and Rs 2,00,000 respectively as on 1st April, 2024. According to the partnership deed, they were entitled to an interest on capital at 10% p.a. for the year ended 31st March, 2025, profit of Rs 78,000 was distributed among the partners without allowing interest on capitals.
Pass the necessary adjusting entry and show the workings clearly.
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)