TS Grewal Solutions (2025 – 26) – Accounting for partnership firm – Fundamentals
86 :- A and B are in partnership sharing profits and losses in the ratio of 3 : 2. They admit C, their manager, as a partner with effect from 1st April 2024, for 1/4th share of profits.
C, while a Manager, was in receipt of a salary of Rs 27,000 p.a. and a commission of 10% of net profit after charging such salary and commission.
In terms of the Partnership deed, any excess amount, which C will be entitled to receive as a partner over the amount which would have been due to him if he continued to be the manager, will be borne by A, Profit for the year ended 31st March, 2025 amounted to Rs 2,25,000.
Prepare profit and loss appropriation account for the year ended 31st March, 2025
87 :- The Partners of a firm, Alia, Bhanu, and Chand distributed the profits for the year ended 31st March 2017. ₹ 8,000 in the ratio of 3:3:2 without providing for the following adjustments:
a)Alia and Chand were entitled to a salary of ₹ 1,500 each per month.
b) Bhanu was entitled for a commission of ₹ 4,000
c) Bhanu and Chand had guaranteed a minimum profit of ₹ 35,000 p.a. to Alia, any deficiency to be borne equally by Bhanu and Chand.
Pass the necessary Journal entry for the above adjustments in the books of the firm. Show workings clearly.
88 :- Ajay, Binay and Chetan were partners sharing profits in the ratio of 3:3:2. The partnership deed provided for the following:
The profit of the firm for the year ended 31st march 2015 was Rs 150000 which was distributed among Ajay, Binay and Chetan in the ratio of 2:2:1, without taking into consideration the provisions of partnership deed. Pass the necessary rectifying entry for the above adjustments in the books of the firm. Show your workings clearly.
89 :- Ankur, Bhavna, and Disha are partners in a firm. On 1st April 2024, the balances in their capital accounts stood at ₹ 14,00,000, ₹ 6,00,000, and ₹ 4,00,000 respectively. They shared profits in the proportion of 7 : 3 : 2 respectively. Partners are entitled to interest on capital @ 6% per annum and salary to Bhavna @ ₹ 50,000 p.a. and a commission of ₹ 3,000 per month to Disha as per the provisions of the partnership Deed. Bhavna’s share of profit (excluding interest on capital) is guaranteed at not less than ₹ 1,70,000 p.a. Disha’s share of profit (including interest on capital but excluding commission) is guaranteed at not less than ₹ 1,50,000 p.a. Any deficiency arising on that account shall be met by Ankur. The profit of the firm for the year ended 31st March 2025 amounted to ₹ 9,50,000.
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)