TS Grewal Solutions (2025 – 26) – Accounting for partnership firm – Fundamentals
90 :- Three Chartered Accountants Abhijit, Baljit, and Charanjit form a partnership, profits being shared in the ratio of 3:2:1 subject to the following:
(a) Charanjit’s share of profit is guaranteed to be not less than Rs 15,000 p.a.
(b) Baljit gives a guarantee to the effect that the gross fee earned by him for the firm shall be equal to his average gross fee of the preceding five years when he was carrying on his profession alone, which on average works out at Rs 25,000.
The Profit for the first year of the partnership is Rs 75,000. The gross fee earned by Baljit for the firm is Rs 16,000.
You are required to show Profit and Loss Appropriation Account after giving effect to the above.
91 :- Xen,Sam and Tim are partners in a firm. For the year ended 31st March, 2025, the profit of the firm Rs 1,20,000 was distributed equally among them, without giving effect to the following terms on the partnership deed:
(a) Sam’s guarantee to the firm that the firm would earn a profit of at least Rs 1,35,000. Any shortfall in these profits would be met by him.
(b) Profits to be shared in the ratio of 2:2:1
You are required to pass the necessary journal entries to rectify the error in accounting.
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)