TS Grewal Solutions (2025 – 26) – Accounting for partnership firm – Fundamentals
67 :- On 31st March, 2025, after the closing of the accounts, Capital accounts of P, Q and R stood in the books of the firm at Rs 40,000 , Rs 30,000 and Rs 20,000 respectively. Subsequently, it was noticed that interest on capital @5% was not allowed. Profit for the year ended 31st March, 2025, was Rs 60,000 and the partners drawings had been P – Rs 10,000, Q – Rs 7,500 and R – Rs 4,500. Profit sharing ratio P , Q and R is 3:2:1.
Pass the necessary adjustment entry.
68 :- Mohan, Vijay and Anil are partners, the balances of capital accounts being Rs 30,000, Rs 25,000 and Rs 20,000 respectively. In arriving at these amounts profits for the year ended 31st March, 2025, Rs 24,000 had been credited to partners in their profit-sharing ratio. Their drawings were Rs 5,000 (Mohan), Rs 4,000 (Vijay) and Rs 3,000(anil) during the year. Subsequently following omission were noticed and it was decided to rectify the errors:
- Interest on capital @10% p.a.
- Interest on drawings: Mohan Rs 250, Vijay Rs 200 and Anil Rs 150
Making necessary corrections through a journal entry and show your workings clearly
69 :- Mudit, Sudhir, and Uday are partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their fixed capital balances are Rs 4,00,000, Rs 1,60,000, and Rs 1,20,000 respectively. Net Profit for the year ended 31st March, 2018 distributed amongst the partners was Rs 1,00,000, without taking into account the following adjustments
- Interest on capitals @2.5% p.a.
- Salary to Mudit Rs 18,000 p.a. and commission to Uday Rs 12,000
- Mudit was allowed a commission of 6% of divisible profits after charging such commission
Pass a rectifying Journal entry in the books of the firm. Show workings clearly.
70 :- Piya and Bina are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following was the Balance Sheet of the firm as on 31st March, 2016
The Profits Rs 30,000 for the year ended 31st March, 2016 were divided between the partners without allowing interest on capital @ 12% p.a. and salary to Piya @ 1,000 per month. During the year, Piya withdrew Rs 8,000 and Bina withdrew Rs 4,000. Showing your working notes clearly. Pass the necessary rectifying entry.
71 :- Mannu and Shrishti are partners in a firm sharing profits in the ratio of 3 : 2. Following information is of the firm as on 31st March, 2025:
Profit for the year ended 31st March, 2025 was Rs 50,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently omitted. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.
72 :- On 31st March, 2018, the balances in the Capital Accounts of Abhir, Bobby and Vineet, after making adjustments for profits and drawings were Rs 8,00,000, Rs₹6,00,000, and Rs 4,00,000 respectively.
Subsequently, it was discovered that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @ 10% p.a. and were to be charged interest on drawings @ 6% p.a. The drawings during the year were: Abhir – Rs 20,000 drawn at the end of each month, Bobby – Rs 50,000 drawn at the beginning of every half year, and Vineet – Rs 1,00,000 withdrawn on 31st October, 2017. The net profit for the year ended 31st March 2018 was Rs 1,50,000. The profit-sharing ratio was 2 : 2 : 1.
Pass necessary adjusting entries for the above adjustments in the books of the firm. Also, show your 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)