TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021

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Solutions for T.S. Grewal's Double Entry Book Keeping:
Accounting for Not for Profit Organizations and Partnership Firms (Vol.1)
Textbook for CBSE Class 12
TS Grewal Solutions Class 12 Accountancy
Chapter 2 Accounting for Partnership Firms - Fundamentals

Question 1. Define Partnership.
Answer:
Partnership is the relation between person who have agreed to share the profit of a business carried on by all or any of them acting for all.
 
Question 2. State any two essential features or characteristics of partnership other than minimum number of partners and profit sharing.
Answer:
Below are the characteristics of Partnership:-
1. Two or More Persons:- There must be at least two persons to form a partnership and all such persons must competent to contract. According to Indian Contract Act, 1872, every person except the following is competent to contract:
(a) Minor
(b) Persons of unsound mind
(c) Persons disqualified by any law.
2. Agreement:- Partnership comes into existence by and agreement, either written or oral. The agreement among the partners is the basis of their relationship which may be for a particular venture, for a period or at will.
 
Question 3. Does partnership firm has a separate legal entity? Give reason in support of your answer.
Answer:
No, a partnership firm does not have a separate legal entity from its partners.
Reason: Private assets of the partners can be used to meet the liabilities of the firm in case firm’s assets are not adequate to meet its liabilities.
 
Question 4. What is the maximum number of partners that a partnership firm can have? Name the Act that provides for the maximum number of partners in a partnership firm.
Answer:
The maximum number of partners in a firm can be 50 as per Section 464 of the Companies Act, 2013 read along with Rule 10 of the Companies (Miscellaneous) Rules, 2014.
 
Question 5. Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They contributed equal amounts and purchased a building for 2 crores.After a year, they sold it for 3 crores and shared the profits equally. Are they doing the business in partnership? Give reason in support of your answer.
Answer:
No, they are not doing business in partnership.
Reason:- This is because partnership required the business conduct on regular basis and share the profit. But in this example it is only a one time activity.
 
Question 6. A group of 40 people want to form a partnership firm. They want your advice regarding the maximum number of persons that can be there in a partnership firm and name of the Act under whose provision it is given.
Answer:
The maximum number of partners in a firm can be 50 as per Section 464 of the Companies Act, 2013 read along with Rule 10 of the Companies (Miscellaneous) Rules, 2014.
 
Question 7. Is there any restriction on maximum number of partners? If yes, name the Act under which it is prescribed.
Answer:
Yes, The Central Government has prescribed maximum number of partners in a firm to be 50 vide Rule 10 of the companies Rules, 2014. Thus, in effect, a partnership firm cannot have more than 50 members.
 
Question 8. Does a partner has right not to allow admission of a new partner, if the Partnership Deed does not exist?
Answer:
In the absence of partnership deed, a new partner (new) can be admitted only with the consent of all the existing partners. So, a partner has right not to allow admission of a new partner.
 
Question 9. State any two rights of a partner besides profits of business, participating in business and right to be consulted about affairs of the business.

Answer:

Below are the rights of partners:-
1. Every Partner has the right to participate in the management of the business.
2. After giving proper notice, a partner has the right to retire from the firm.
 
Question 10. What is a Partnership Deed?
Answer:
Partnership comes into existence by an oral or written agreement. It is better to have written agreement to avoid any dispute. This written document known as Partnership Deed.
 
Question 11. Why is it considered better to make a partnership agreement in writing?

Answer:

Partnership Deed is an important legal document which defines relationship among the partners. It is important to have written Partnership Deed to avoid and settle possible dispute. 

 

Question 12. X and Y are partners. Y wants to admit his son K into business. Can K become the partner of the firm? Give reason.

Answer:

K, cannot become the partner of the firm.

Reason: As per Section 31(1) of the Indian Partnership Act, 1932, a person can be admitted as a new partner only with the consent of all the existing partners unless otherwise agreed upon.


Question 13. Pratibha, partner of a firm, has advanced loan to the firm of 1,00,000. The firm does not have a Partnership Deed. Will Pratibha get interest on the loan? If yes, at which rate and why?

Answer:

Yes, Pratibha get the interest on loan by 6%. In the absence of partnership deed, interest rate would be 6% p.a. This interest on loan would be paid because it is a charge against profits.


Question 14. Neha, a partner, owns a building in which the firm carries its business. The firm pays her 10,000 as rent of the building. To which account rent will be debited?

Answer:

Yes, Rent is paid to Neha is to be debited to profit and loss account because it is paid against the profit.

 

Question 15. What is meant by 'Fixed Capital of a Partner?

Answer:

‘Fixed Capital’ of a partner means that the capital remains unchanged unless additional capital is introduced or withdrawal is made from the existing capital. 


Question 16. What is meant by 'Fluctuating Capital of a Partner?

Answer:

It is a method of maintaining Capital Accounts of partners under which all transactions related to a partner (such as his share of profit/loss, drawings, interest on capital or drawings, salary, etc.) are recorded in his Capital Account. 


Question 17. Distinguish between 'Fixed Capital Account' and 'Fluctuating Capital Account' on the basis of credit balance.

Answer:

Fixed Capital Account always shows a credit (positive) balance, while Fluctuating Capital Account may show debit (negative) or credit (positive) balance. 


Question 18. A firm maintains a Capital Account and a Current Account for each partner. What is the term used when this method of maintaining Capital Accounts is followed?

Answer:

If a firm maintains a Capita Account and a Current Account this approach is called Fixed Capital Account Method.


Question 19. Give two items which may appear on the debit side of a Partner's Current Account

Answer:

Current Account of each partner is debited with:-

  1. Drawings by a partner against profit
  2. Interest on drawings


Question 20. State the two methods of maintaining Capital Accounts of partners.

Answer:

Two methods of maintaining Capital Account of Partners:-

  1. Fixed Capital Account Method
  2. Fluctuating Capital Accounts Method


Question 21. If interest on capital, salary to the partner and share of profit are credited while interest on drawings, drawings and share of loss are debited to the Partners' Capital Accounts, what is the method followed to maintain the Capital Accounts?

Answer:

Fluctuating Capital Accounts Method is maintain, If interest on capital, salary to the partner and share of profit are credited while interest on drawings, drawings and share of loss are debited to the Partners' Capital Accounts.


Question 22. Interest on capital is credited to Partner's Current Account. Name the method of maintaining Capital Account.

Answer:

Fixed Capital Accounts Method used if Interest on capital is credited to Partner’s Current Account.


Question 23. Under which Capital Account Method, Current Accounts of partners are maintained?

Answer:

Fixed Capital Accounts Method, Current Accounts of partners are maintained.


Question 24. Under which Capital Account Method, Current Accounts of partners are not maintained?

Answer:

Fluctuating Capital Accounts Method, Current Accounts of partners are not maintained.


Question 25. Give four items that may appear on the credit side of the Partner's Current Account.

Answer:

Current Account of each partner is credited with:-

  1. Interest on Capital
  2. Salary or Commission
  3. Share of profit
  4. Transfer of any amount from Capital Account permanently.


Question 26. Give three items that may appear on the debit side of the Partner's Current Account.

Answer:

Current Account of each partner is debited with:-

  1. Drawings by a partner against profit
  2. Interest on drawings
  3. Share of loss.


Question 27. M/S RSA maintains Partners' Capital Accounts under Fixed Capital Accounts Method. Accountant of the firm has credited their salary and interest on capital to their Capital Accounts. Do you agree with the treatment? Give reasons for your answer.

Answer:

No, we don’t agree with the treatment as salary and interest on capital are to be credited to the partner’s current account under fixed capital account method.


Question 28. Give two circumstances in which the Fixed Capitals of partners may change.

Answer:

Two circumstances in which the Fixed Capitals of partners may change:

  1. When Additional Capital is introduced.
  2. When a part of capital is permanently withdrawn.


Question 29. List the item that may appear on the debit side of a Partner's Fixed Capital Account.

Answer:

Below items may appear on the debit side of a Partner’s Fixed Capital Account:-

  1. Cash (Permanent capital withdrawn)
  2. Balance c/d


Question 30. ABC, a partnership firm, does not have a Partnership Deed. The firm wants to pay remuneration to the partners. How can it do so?

Answer:

In absence of partnership deed, partners are not allowed get remuneration so, ABC cannot pay remuneration.


Question 31. If the Partnership Deed does not specify the profit-sharing ratio, in what ratio is the profit or loss shared by the partners?

Answer:

If the Partnership Deed does not specify the profit-sharing ratio, the partners will equally distribute the profit or loss.


Question 32. What share of profit would a sleeping partner who has contributed 75% of the total capital get in the absence of a deed?

Answer:

In the absence of Partnership deed, if nothing is fixed about sharing of profits and losses by the partners in the deed, then partners share profits and losses in an equal ratio.

So, in this case, even if the sleeping partner has contributed 75% of the total capital of the firm, the provisions of Partnership deed implies distribution of profits and losses will be shared by all the partners equally.


Question 33. If the Partnership Deed does not specify the rate of interest payable on loan by a partner, at what rate will the interest be paid? If not, why?

Answer:

Interest on loan will be payable @ 6%.

Reason:- In the absence of Partnership Deed, the provision of the Indian Partnership Act, 1932 will apply. It provides that interest @ 6% p.a. will be paid on partner’s loan, in the absence of Partnership Deed.


Question 34. State the provisions of Indian Partnership Act regarding the payment of remuneration to a partner for the services rendered.

Answer:

As per the Provision of Indian Partnership Act, 1930, in the absence of Partnership Deed, no remuneration is to be provided to a partner.


Question 35. If the Partnership Deed does not specify the rate of interest chargeable on drawings, will the interest still be charged? If yes, at what rate? If not, why?

Answer:

No, there is no interest chargeable on drawings.

Reason:- In the absence of Partnership Deed there is no provision to provide interest on drawings to partner’s.


Question 36. State the provisions of Partnership Act, 1932, in the absence of a Partnership Deed regarding (i) Interest on Partner's Drawings, and (ii) Interest on Advances other than capital.

Answer: 

(i)            Interest on Partner's Drawings:- In the absence of Partnership Deed there is no provision to provide Interest on Partner’s Drawings in Partnership Act, 1932. 

(ii)          Interest on Advances other than capital:- Advance other than capital are treated as Loan to the firm. In the absence of Partnership deed, according to Partnership Act of 1932, the partners are entitled for 6% p.a. interest on loan forwarded by them to the firm. 


Question 37. Can a partner be exempted from sharing losses in a firm? If yes, under what circumstances?

Answer:

Yes, a partner may be exempted from bearing losses in a Partnership Firm. If a partner is admitted for the benefits of partnership, in such cases, minors are entitled to share only profit of the firm.


Question 38. A and B are partners in a firm without a Partnership Deed. A is an active partner and claims a salary of 18,000 per month. State with reason whether the claim is valid or not.

Answer:

A’s Claim is invalid because there is no partnership deed and in the absence of partnership deed no partner can claim any salary. 


Question 39. Somesh and Ramesh are partners in a firm with capitals of 3,00,000 and 4,00,000 respectively. They do not have a Partnership Deed. Ramesh wants to share the profits in the ratio of capitals. State with reasons whether the claim is valid.

Answer:

Ramesh’s Claim is invalid because there is no partnership deed and in the absence of partnership deed profit and loss will be shared equally. 


Question 40. Chander and Suman are partners in a firm without a Partnership Deed. Chander's capital is Rs. 10,000 and Suman's capital is Rs. 14,000. Chander has advanced a loan of 5,000 and claims interest @ 12% p.a. on it. State with reasons whether his claim is valid or not.

Answer:

Chander’s Claim is Invalid because in the absence of a Partnership Deed, a partner is entitled to receive interest on loan and advances provided to the firm at the rate of 6% p.a.         


Question 41. State the provisions of Indian Partnership Act, 1932 regarding interest on partner's capital and interest on partner's loan when there is no Partnership Deed.

Answer: 

(1)  Interest on partner's capital:- According to provisions of Indian Partnership Act, 1932 interest on capital is not paid to partners. 

(2)   Interest on partner's Loan:- According to provisions of Indian Partnership Act, 1932 Interest on loan is paid @ 6% p.a. Interest on partner’s loan is charge against profit. It means interest is payable even if there is a loss.


Question 42. What is Profit and Loss Appropriation Account?

Answer:

A partnership firm, like a proprietorship firm prepares Trading Account, Profit and Loss Account and Balance Sheet. In addition, a partnership firm prepares Profit and Loss Appropriation Account to which net profit or net loss as per the Profit and Loss Account is transferred to show its appropriation.


Question 43. List the items that are debited to profit and Loss Appropriation Account.

Answer:

Below are the item’s which is debited into profit and loss appropriation account:-

  1. Net Loss transferred from Profit and Loss Account.
  2. Interest on Capital
  3. Partner’s Salaries
  4. Partner’s Commission
  5. Reserve


Question 44. List the items that are credited to Profit and Loss Appropriation Account.

Answer:

Below are the item’s which is credited into profit and loss appropriation account:-

  1. Net Profit transferred from Profit and Loss Accounts
  2. Interest on Drawings
 

Question 45. To which account salary, commission to partners and interest on capital be debited? Why?

Answer:

Salary, Commission to partners and interest on capital to be debited in Profit and Loss Appropriation Account because these are the loss for the firm and income for the partners.


Question 46. Under what circumstances Average Method of calculating interest on drawings is applied?

Answer:

Average Method is used when drawings are on regular basis or when:

(a)  The amount of drawings is uniform

(b)  The time interval between the two drawings is also uniform.


Question 47. If a fixed amount is withdrawn on 15th day of every month of a calendar year, for what period will the interest on total amount withdrawn be calculated?

Answer:

A fixed amount is withdrawn on 15th day of every month; interest would be calculated by Average Period Method. Total amount withdraw will be calculated for an average period of 6 month.


Question 48. If A draws 15,000 every month at the end of the month, what will be the interest @ 5% p.a.?

Answer:

Calculation of Interest on Drawings:-

 TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021

 

Question 49. How is interest on drawings calculated, if the drawings are made at regular intervals, as on the 15th day each month?

Answer:

Calculation of Interest on Drawings:-

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-

 

Question 50. How will you calculate interest on the drawings of equal amount made on the last day of every month a calendar year?

Answer:

If a partner withdraws fixed amount at the end of every month, interest is charged for 5.5 months on the total amount.

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A


Question 51. Explain briefly the meaning of guarantee of minimum profit.

Answer:

A new partner may be admitted in the firm with minimum guaranteed profit from the business. The profit may be guaranteed to an existing or incoming partner by:

(a)  All the remaining partners in an agreed ratio

(b)  One or more f the existing or old partners.

When the guaranteed partner’s or new partner’s share of profit is more than guaranteed amount, his actual share of profit is given to him instead of the guaranteed amount of profit.


Question 52. State one difference between Fixed Capital Account and Fluctuating Capital Account of partners.

Answer:

Fixed Capital Account cannot have a debit balance but Fluctuating Capital Account can have a debit balance.


Question 53. Why is it that the Capital Account of a partner does not show a Debit Balance' in spite of regular and consistent losses year after year?

Answer:

The Capital Account of a partner shows a debit balance when partner withdraws amount from his Capital or he leave from the partnership.

It does not show debit balances in spite of regular and consistent losses year after year because these losses are first applied to the company’s assets or are recorded as part of a company's liability. 


Question 54. A Partnership Deed provides for the payment of interest on capital but there was a loss instead of profit during the year 2010-11. At what rates will the interest on capital be allowed?

Answer:

In case of Loss, there is no interest on Capital allowed to partner. Interest on capital is allowed only when there is any profit.

 

Question 55. What is meant by 'unlimited liability of a partner'?

Answer:

Unlimited liability means that the liability of a partner is joint and several. The personal assets of the partner can be utilised for paying a firm’s debts.


Question 56. When the partners' capitals are fixed, where will the drawings made by a partner be recorded?

Answer:

When the partner’s capital is fixed, drawings made by a partner will be debited to the Partner’s Current Account.


Question 57. If the partners' capitals are fixed, where will you record interest charged on drawings?

Answer:

When the partner’s capital is fixed, interest charge on drawings will be credited to the Partner’s Current Account.


Question 58. Name the method of calculating Interest on Drawings of the partner if different amounts are withdrawn on different dates.

Answer:

When drawings are made in unequal amount at different dates, interest on drawings is calculated by Product Method. 

 

Short Answer Type Questions


Question 1. Mention the items that may appear on the credit side of the Capital Account of a Partner when the capitals are fluctuating.

Answer:

List of the items that appear on the Credit side of the Capital account:-

  1. Credit opening balance
  2. Additional Capital
  3. Interest on Capital
  4. Commission
  5. Partners Salary
  6. Profit


Question 2. Mention the items that may appear on the debit side of the Capital Account of a Partner when the capitals are fluctuating.

Answer:

List of the items that appear on the Debit side of the Capital account:-

  1. Debit Opening Balance
  2. Drawings against Capital
  3. Drawings against Profit
  4. Interest on Drawings
  5. Loss


Question 3. List any four items appearing on the Profit and Loss Appropriation Account.

Answer:

List of the items that appear in Profit and Loss Appropriation account at debit side:-

  1. Net Loss Transferred from Profit and Loss Account
  2. Interest on Capital
  3. Partner’s Salaries
  4. Partner’s Commission


Question 4. State any four features of a Partnership.

Answer:

The essential characteristics of partnership are:

1. Two or More Persons:- There must be at least two persons to form a partnership and all such persons must be competent to contract. According to Indian Contract Act, 1872 every person except the following is competent to contract:

(a) Minor (b) Persons of unsound mind (c) Persons disqualified by any law.

Section 464 of the Companies Act, 2013 empowers the Central Government to prescribe maximum number of partners in a firm but the number of partners so prescribed cannot be more than 100. The Central Government has prescribed maximum number of partners in a firm to be 50 vide Rule 10 of the Companies (Miscellaneous) Rules, 2014. Thus, in effect, a partnership firm cannot have more than 50 members.

2. Agreement:- Partnership comes into existence by an agreement, either written or oral. The agreement among the partners is the basis of their relationship which may be for a particular venture, for a period or at will. The written agreement among the partners is known as Partnership Deed.

3. Lawful Business:- A partnership is formed to do a lawful business. Business includes trade, vocation and profession. A joint ownership or charitable activity (such as running of a charitable clinic) is not business as it does not function with the objective of earning profit. Therefore, Partnership Deed is not drawn.

4. Profit-sharing:- The agreement between/among the partners must be to share profits or losses of the business. It is not essential that all the partners must share losses also. There may be a provision in the Partnership Deed that a particular partner or partners shall not bear the losses.


Question 5. List any four contents of a Partnership Deed.

Answer:

It is a legal document signed by all the partners and has clause on the following:

(i) Description of the Partners:- Names, description and addresses of the partners.

(ii) Description of the Firm:- Name and address of the firm.

(iii) Principal Place of Business:- Address of the principal place of business.

(iv) Nature of Business:- Nature of business that the firm shall carry on.   

 

Question 6. Discuss the main provisions of the Indian Partnership Act, 1932 that are relevant to partnership accounts if there is no Partnership Deed.

Answer:

Below are the Important Provisions of the Indian Partnership Act, 1932:- 

(i)     If all the partners agree, a minor may be admitted for the benefit of partnership.

(ii)    A person may be admitted as a partner either with the consent of all the existing partners or in accordance with an express agreement among the partners.

(iii)   A partner may retire from the firm either with the consent of all the other partners or in accordance with an express agreement among the partners.

(iv)   Registration of the firm is optional and not compulsory.

(v)    Unless otherwise agreed by the partners in the Partnership Deed, a firm is dissolved on the death of a partner. 

 

Question 7. Distinguish between Fixed and Fluctuating Capitals.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A1

 

Question 8. State the two situations in which interest on Partners' Capital is generally provided.

Answer:

Below are the situations in which interest on Partner’s capital is allowed:-

  1. When there is a provision in partnership deed about interest on partner’s capital.
  2. When credit balance in the Partner’s Capital Account.

 

EXERCISE ::---->


Partnership Deed


Question 1:  In the absence of Partnership Deed, what are the rules relation to :

(a) Salaries of partners.
(b) Interest on partners’ capitals.
(c) Interest on partners’ loan.
(d) Division of profit.
(e) Interest on partners’ drawings. 

Answer:

(A)   Salaries of Partners – No Salary Is Payable To Any Partner.

(B)   Interest on Partners Capital – No interest on capital is allowed or paid to any partner.

(C)   Interest on Partners Loan – Interest on Partner’s Loan is allowed @ 6% to the partners.

(D)  Division of Profit – Profit are divided equally.

(E)   Interest on Partner’s drawings – No interest on Partner’s drawings is charged from the Partners.

 

Point of Knowledge:-

Some Rights of Partners:-

  1. Every partner has the right to participate in the management of the business.
  2. Every partner has the right to be consulted about the affairs of the business.
  3. Every partner has the right to inspect the books of accounts and have a copy of it.
  4. Every partner has the right to share profit or losses with others in the agreed ratio.

 

Question 2:  Following differences have arisen among P, Q and R. State who is correct in each case:

(a) P used Rs. 20,000 belonging to the firm and made a profit of Rs. 5,000. Q and R want the amount to be given to the firm?
(b) Q used Rs. 5,000 belonging to the firm and suffered a loss ofRs1000. He wants the firm to bear the loss?
(c) P and Q want to purchase goods from A Ltd., R does not agree?
(d) Q and R want to admit C as partner, P does not agree?
 

Answer:

Following differences have arisen among P, Q and R. The partner/partners correct version is or are:

(a) Q and R

Reason: P has to pay Rs 20,000 along with profit of Rs 5,000 to the firm because this amount belongs to the firm.

 

(b) Q is wrong or P and R are correct.

Reason: Q is paying Rs. 5,000 to the firm because every partner of a partnership firm is liable to the firm for any loss caused by him.

 

(c) P and Q are correct.

Reason: P and Q can buy goods from A ltd.

(d)  P is correct.

Reason: As per partnership act a new partner could get admitted in the partnership firm only, when all the partners are agree to admit him.

 

Points to Remember:- 

(A) Any profit earned by an agent by using the firm’s property is attributable to the firm. 

(B) Any loss earned by an agent of a partnership firmby using the firm’s property, agent or partner should be responsible for the loss. 

(C) A partner has a right to buy and sell goods without consulting the other partners. 

(D) As per partnership act a new partner could get admitted in the partnership firm only, when all the partners are agree to admit him.

 

Question 3:  A, B and C are partners in a firm. They do not have a Partnership Deed. At the end of the first year of the commencement of the firm, they have faced the following problems :

(a) A wants that interest on capital should be allowed to the partners but B and C do not agree.
(b) B wants that the partners should be allowed to draw salary but A and C do not agree.
(c) C wants that the loan given by him to the firm should bear interest @ 10% p.a. but A and B do not agree.
(d) A and B having contributed larger amounts of capital, desire that the profits should be divided in the ratio of their capital contribution but C does not agree.
State how you will settle these disputes if the partners approach you for purpose.
 

Answer:

(A)   In The Absence of The Partnership Deed, No Interest On Capital Will Be Allowed Hence, B And C Are Correct. Interest On Capital Should Not Be Allowed.

(B)   In The Absence of The Partnership Deed, No Salary Will Be Allowed Hence, B And C Are Correct. Interest on Capital Should Not Be Allowed.

(C)   As per principle Interest on partner’s loan will be allowed at 6% p.a. So, In this situation A and B are correct C should be allowed Interest on loan @ 6%

(D)  In the Absence of Partnership Deed, Profit should be distributed in Equal Ratio not in capital ratio. So, in this situation C is correct A and B are wrong. 

Point of Knowledge:-

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A2


Question 4:  Jaspal and Rosy were partners with capital contribution of Rs. 10,00,000 and Rs. 5,00,000 respectively. They do not have a Partnership Deed. Jaspal wants that profits of the firm should be shared in their capital ratio. Rosy convinced Jaspal that profits should be shared equally. Explain how Rosy would have convinced Jaspal for sharing the profit equally. 

Answer:

Rosy would have convinced Jaspal for sharing the profit equally as the rule, in the absence of partnership deed is to share the profit equally as per the Indian partnership act, 1932. 

Point of Knowledge:-

In the absence of Partnership deed Profit will be equally divided between partners.


Question 5:  Harshad and Dhiman are in partnership since 1st April, 2017. No partnership agreement was made. They contributed Rs 4,00,000 and 1,00,000 respectively as capital. In addition, Harshad advance an amount of Rs 1,00,000 to the firm on 1st October, 2017. Due to long illness, Harshad could not participate in business activities from 1st August to 30th September, 2017. The profit for the year ended 31st March, 2018 amounted to Rs 1,80,000. Dispute has arisen between Harshad and Dhiman.

Harshad Claims :

(i) He should be given interest @ 10% per annum on capital and loan;
(ii) Profit should be distributed in proportion of capital;

Dhiman Claims :

(i) Profit should be distributed equally;
(ii) He should be allowed Rs 2,000 p.m. as remuneration for the period he managed the business in the absence of Harshad;
(iii) Interest on Capital and loan should be allowed @ 6% p.a.
You are required to settle the dispute between Harshand and Dhiman. Also prepare Profit and Loss Appropriation Account. 

Answer:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A3

Harshad Claims:

(i) He should get only interest on loan @ 6% p.a. as per the law.

(ii) In the absence of partnership deed, Profit should be distributed in equal ratio not in proportion of capital

Dhiman Claims:

(i) His Claim is correct and profit should be distributed in equal ratio.

(ii) He should not be allowed any salary for managing business.

(iii) Payment of interest on loan will be @ 6% p.a. as per the law and no interest on capital will be allowed.

 

Point of Knowledge:-

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A4

Question 6:   A and B are partners from 1st April, 2018, without a Partnership Deed and they introduced capitals of Rs. 35,000 and Rs. 20,000 respectively. On 1st October, 2018, A advances a loan of Rs. 8,000 to the firm without any agreement as to interest. The profit and Loss Account for the year ended 31st March, 2019 shows a profit of Rs.15,000 but the partners cannot agree on payment of interest and on the basis of division of profits.

You are required to divide the profits between them giving reasons for your method. 

Answer:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A5

  1. Payment of interest on loan will be @ 6% p.a. as per the law.
  2. Profit will be divided equally as per the law.

Point of knowledge-

1.     Calculation of interest on loan

Loan Amount = Rs. 8,000

Time = 6 months (01st Oct. To 31st March)

Rate = 6% (In the absence of partnership deed)

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A6


Interest on partner’s loan to the firm


Question 7:  A and B are partners in a firm sharing profits in the ratio of 3 : 2. They had advanced to the firm a sum of Rs. 30,000 as a loan in their profit-sharing ratio on 1st October, 2017. The Partnership Deed is silent on interest on loans from partners. Compute interest payable by the firm to the partners, assuming the firm closes its books every year on 31st March. 

Answer:

Interest on Partner’s Loan to the Firm:

According to the Indian Partnership Act, 1932 in the absence of any information and Partnership Deed, the interest on partner’s loan will be allowed at 6% p.a.

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A7

Point of Knowledge:

Interest on partner’s loan being a charge against profit is paid or credited to partner’s loan Account even if profit is less than the amount of interest on loan. The resulting loss is distributed among partners in the profit sharing ratio.

 

Question 8:  X and Y are partners sharing profits and losses in the ratio of 2 : 3 with capitalsRs 2,00,000 and Rs 3,00,000 respectively. On 1st October, 2017, X and Y granted loans ofRs 80,000 andRs 40,000 respectively to the firm. Show distribution of profits/losses for the year ended 31st March, 2018 in each of the following alternative cases:

Case 1 : If the profits before interest for the year amounted toRs 21,000.

Case 2 : If the profits before interest for the year amounted toRs 3,000.

Case 3 : If the profits before interest for the year amounted toRs 5,000.

Case 4 : If the loss before interest for the year amounted toRs 1,400. 

Answer:

 TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A8

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A9

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A10

Point of Knowledge:

  1. As per the provision of Indian Partnership Act, 1932, partner’s loan is repayable on dissolution before payment of capital to partners
  2. In the absence of any agreement, partners are entitled to get interest @ 6% p.a. on loan advanced whereas they are not entitled to interest on capital.

 

Question 9:   Bat and Ball are partners sharing the profits in the ratio of 2: 3 with capitals of Rs1,20,000 and Rs. 60,000 respectively. On 1st October, 2017, Bat and Ball granted loans of Rs. 2,40,000 and Rs. 1,20,000 respectively to the firm. Bat had allowed the firm to use his property for business for a monthly rent of Rs. 5,000. The loss for the year ended 31st March, 2018 before rent and interest amounted to Rs 9,000. Show distribution of profit/loss. 

Answer:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A11


Profit and Loss Appropriation Account.............


Question 10:  A and B are partners. A's Capital is Rs 1,00,000 and B's Capital is Rs. 60,000. Interest on capital is payable @ 6% p.a. B is entitled to a salary of Rs 3,000 per month. Profit for the current year before interest and salary to B isRs80,000. Prepare Profit and Loss Appropriation Account. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A12

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A13


Question 11:  X, Y and Z are partners in a firm sharing profits in 2 : 2 : 1 ratio. The fixed capitals of the partners were: X Rs. 5,00,000; Y Rs.5,00,000 and Z Rs. 2,50,000 respectively. The Partnership Deed provides that interest on capital is to be allowed @ 10% p.a. Z is to be allowed a salary of Rs. 2,000 per month. The profit of the firm for the year ended 31st March, 2018 after debiting Z's salary was Rs. 4,00,000. Prepare Profit and Loss Appropriation Account. 

Answer:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A14
TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A15


Question 12:   X and Y are partners sharing profits in the ratio of 3 : 2 with capitals of Rs. 80,000 and Rs. 60,000 respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an annual salary of Rs6,000 which has not been withdrawn. Profit for the year ended 31st march, 2018 before interest on capital but after charging Y's salary amounted toRs24,000.

A provision of 5% of the profit is to be made in respect commission to the manager. Prepare an account showing the allocation profits. 

Answer:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A16

Point of Knowledge:-

1.     Manager’s commission is a charge against profit and it is not an appropriation out of profit. Hence a separate Profit and Loss Account is prepared to charge manager’s commission.   

Calculation of Manager’s Commission:-

Total Profit = 24,000 + 6,000 = Rs. 30,000

Commission = Rs. 30,000 × 5% = Rs.1500

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A17


Question 13:   Prem and Manoj are partners in a firm sharing profits in the ratio of 3 : 2. The Partnership Deed provided that Prem was to be paid salary of Rs. 2,500 per month and Manoj was to get a commission of Rs. 10,000 per year. Interest on capital was to be allowed @ 5% p.a. and interest on drawings was to be charged @ 6% p.a. Interest on Prem's drawings was Rs. 1,250 and on Manoj's drawings wasRs.425. Interest on Capitals of the partners were Rs. 10,000 and Rs.7,500 respectively. The firm earned a profit of Rs. 90,575 for the year ended 31st March, 2018.

Prepare Profit and Loss Appropriation Account of the firm. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A18



Question 14:   Reema and Seema are partners sharing profits equally. The Partnership Deed provides that both Reema and Seema will get monthly salary of Rs. 15,000 each, Interest on Capital will be allowed @ 5% p.a. and Interest on Drawings will be charged @ 10% p.a. Their capitals were Rs. 5,00,000 each and drawings during the year were Rs. 60,000 each.

The firm incurred a loss of Rs. 1,00,000 during the year ended 31st March, 2018.

Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018.

Answer:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A19

Point of Knowledge:-

1.     The firm has incurred loss, so no interest on capital and salary will be allowed to the partners.

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A20


Question 15:  Bhanu and Partab are partners sharings profits eqully. Their fixed capitals as on 1st April, 2017 are Rs.8,00,000 and Rs.10,00,000 respectively. Their drawings the year were Rs.50,000 and Rs.1,00,000 respectively. Interest on Capital is a charge and is to be allowed @ 10% p.a. and interest on drawings is to be charged @ 15% p.a. Profit for the year ended 31st March, 2018 was Rs. 1,20,000.

Prepare Profit and Loss Appropriation Account.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A21

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A22


Partner’s Capital Accounts Fixed Capital


Question 16:  Amar and Bimal entered into partnership on 1st April, 2017 contributing Rs1,50,000 and Rs2,50,000 respectively towards capital. The Partnership Deed provided for interest on capital @ 10% p.a. It also provided that Capital Accounts shall be maintained following Fixed Capital Accounts method. The firm earned net profit ofRs1,00,000 for the year ended 31st March 2018.

Pass the Journal entry for interest on capital. 

Answer:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A23


Question 17:  Kamal and Kapil partners having fixed capitals of Rs5,00,000 each as on 31st March, 2017. Kamal introduced further capital of Rs1,00,000 on 1st October, 2017 whereas Kapil withdrewRs1,00,000 on 1st October, 2017 out of capital.

Interest on capital is to be allowed @ 10% p.a.

The firm earned net profit of Rs. 6,00,000 for the year ended 31st March 2018.

Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account. 

Answer:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A24

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A25



Question 18:   Simran and Reema are partners sharing profits in the ratio of 3 : 2. Their capitals as on 31st March, 2017 were Rs. 2,00,000 each whereas Current Accounts had balances of Rs. 50,000 and Rs. 25,000 respectively. Interest is to be allowed @ 5% p.a. on balances in Capital Accounts. The firm earned net profit of Rs. 3,00,000 for the year ended 31st March 2018.

Pass the journal entries for interest on capital and distribution of profit. Also prepare Profit and Loss Appropriation Account for the year. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A26

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A27


Fluctuating Capital


Question 19:  Anita and Ankita are partners sharing profits equally. Their capitals, maintained following Fluctuating Capital Accounts Method, as on 31st March, 2017 were Rs 5,00,000 and Rs 4,00,000 respectively. Partnership Deed provided to allow interest on capital @ 10% p.a. The firm earned net profit ofRs2,00,000Pass the journal entry for interest on capital.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A28

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A29


Question 20:   Ashish and Aakash are partners sharing profit in the ratio of 3 : 2. Their Capital Accounts showed a credit balance of Rs. 5,00,000 andRs6,00,000 respectively as on 31st March, 2018 after debit of drawings during the year of Rs1,50,000 andRs1,00,000 respectively. Net profit for the year ended 31st March was Rs5,00,000. Interest on capital is to be allowed @ 10% p.a.

Pass the journal entry for interest on capital and prepare Profit and Loss Appropriation Account. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A30

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A31

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A32


Question 21:  Naresh and Sukesh are partners with capitals ofRs3,00,000 each as on 31st March, 2018. Naresh had withdrawn Rs. 50,000 against capital on 1st October, 2017 and also Rs1,00,000 besides the drawings against capital. Sukesh also had drawings of Rs.1,00,000.

Interest on capital is to be allowed @ 10% p.a.

Net profit for the year wasRs2,00,000, which is yet to be distributed.

Pass the journal entries for interest0 on capital and distribution of profit. 

Answer:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A33

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A34

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A35


Question 22:   On 1st April, 2013, Jay and Vijay entered into partnership for supplying laboratory equipment to government schools situated in remote and backward areas. They contributed capitals of Rs. 80,000 and Rs. 50,000 respectively and agreed to share the profits in the ratio of 3 : 2. The partnership Deed provided that interest on capital shall be allowed at 9% per annum. During the year the firm earned a profit of Rs. 7,800. Showing your calculations clearly, prepares 'Profit and Loss Appropriation Account' of Jay and Vijay for the year ended 31st March, 2014. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A36


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A37


Question 23:  Amar, Bhanu and Charu are partners in a firm. Amar and Bhanu are to get annual salary of Rs1,20,000 p.a. each as they are fully involved in the business. Net profit for the year is Rs. 4,80,000. Determine the share of profit to be credited to each partner. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A38

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A39


Question 24:  A, B and C are partners sharing profits and losses in the ratio of 2 : 2 : 1 respectively. A is entitled to a commission of 10% on the net profit. Net profit for the year isRs1,10,000.

Determine the amount of commission payable to A. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A40


Question 25:   X, Y and Z are partners sharing profits and lossed equally. As per partnership Deed, Z is entitled to a commission of 10% on the net profit after charging such commission. The net profit before charging commission is Rs. 2,20,000.

Determine the amount of commission payable to Z. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A41


Question 26:   A, B, C, and D are partners in a firm sharing profits as 4 : 3 : 2 : 1 respectively. It earned a profit of Rs. 1,80,000 for the year ended 31st March, 2018. As per the Partnership Deed, they are to charge a commission @ 20% of the profit after charging such commission which they will share as 2 : 3 : 2 : 3. You are required to show appropriation of profits among the partners. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A42

 TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A43

 

Question 27:   X and Y are partners in a firm. X is entitled to a salary of Rs10,000 per month and commission of 10% of the net profit after partners' salaries but before charging commission. Y is entitled to a salary of Rs25,000 p.a. and commission of 10% of the net profit after charging all commission and partners' salaries. Net profit before providing for partners' salaries and commission for the year ended 31st March, 2018 was Rs. 4,20,000, show distribution of profit.  

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A44
TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021

Calculation of Interest on Partner’s Drawings


Question 28:   Ram and Mohan, two partners, drew for their personal use Rs. 1,20,000 andRs80,000. Interest is chargeable @ 6% p.a. on the drawings. What is the amount of interest chargeable from each partner?

Answer:

calculation of interest on drawings of both the partners:

Interest is chargeable on drawings is 6% p.a:-

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A46


Question 29:  Brij and Mohan are partners in a firm. They withdrew Rs. 48,000 and Rs. 36,000 respectively during the year evenly in the middle of every month. According to the partnership agreement, interest on drawings is to be charged @ 10% p.a.

Calculate interest on drawings of the partners using the appropriate formula. 

Answer:

calculation of interest on drawings of both the partners

Interest is chargeable on drawings is 10% p.a.

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-A47

Points of knowledge:

When a partner withdrawn an equal amount at the middle of the every month, then Interest on drawings is to be calculated for six months.

 

Question 30:   A and B are partners sharing profits equally. A drew regularly Rs. 4,000 in the beginning of every month for six months ended 30th September, 2018. Calculate interest on drawings @ 5% p.a. for a period of six months. 

Answer:

calculation of interest on drawings

Interest is chargeable on drawings is 5 % p.a

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021

Points of knowledge : 

  1. When a partner withdrawn an equal amount at the beginning of every month for the first six Months then interest on drawings is to be calculated for 3.5 months .

 

Question 31:  One of the partners in a partnership firm has withdrawn Rs. 9,000 at the end of each quarter, throughout the year, Calculate interest on drawings at the rate of 6% per annum. 

Answer:

Calculation of interest on drawings when one of the partner’s has withdrawn Rs. 9,000 at the end of each quarter throughout the year:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B 

Points of knowledge : 

When a partner withdrawn an equal amount at the beginning of every month for the first six Months then interest on drawings is to be calculated for 4.5 months.

 

Question 32:  A and B are partners sharing profits equally. A drew regularly Rs. 4,000 at the end of every month for six months ended 30th September, 2018. Calculate interest on drawings @ 5% p.a. for a period of six months. 

Answer:

calculation of interest on drawings

Interest is chargeable on drawings is 5 % p.a

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B1 

Points of knowledge : 

When a partner withdrawn an equal amount at the end of every month for the first six Months then interest on drawings is to be calculated for 2.5 months.

 

Question 33:  Calculate interest on drawings of Mr. Ashok @ 10% p.a. for the year ended 31st March, 2018, in each of the following alternative cases:

Case 1.  If he withdrew Rs7,500 in the beginning of each quarte.
Case 2.  If he withdrew Rs7,500 at the end of each quarter.
Case 3.  If he withdrew Rs7,500 during the middle of each quarter.
 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B2

 

Question 34:  Kanika and Gautam are partners doing a dry-cleaning business in Lucknow, sharing profits in the ratio 2: 1 with capitalsRs5,00,000 andRs4,00,000 respectively. Kanika withdrew the following amounts during the year to pay the hostel expenses of her son:

 TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B3

Gautam withdrew Rs.15,000 on the first day of April, July, October and January to pay rent for the accommodation of his family. He also paidRs20,000 per month as rent for the office of partnership which was  in a nearby shopping complex.
Calculate interest on drawings @ 6% p.a.
 

Answer:

calculation of interest on drawings of kanika

Under simple interest method:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B4

Interest on drawings of Gautam = 15,000 × 4 × 6/100 × 7.5/12 = Rs 2,250

 

Points to remember:

We can use any one method to find the solution.


Calculation of Interest on Partner’s Capital


Question 35:  A and B are partners sharing Profit and Loss in the ratio 3 : 2 having Capital Account balances of Rs. 50,000 and Rs. 40,000 on 1st April, 2017. On 1st July, 2017, A introduced Rs. 10,000 as his additional capital whereas B introduced only Rs. 1,000. Interest on capital is allowed to partners @ 10% p.a.

Calculate interest on capital for the financial year ended 31st March, 2018. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B5

 

Question 36:  Ram and Mohan are partners in a business. Their capitals at the end of the year were Rs. 24,000 and Rs.18,000 respectively. During the year, Ram's drawings and Mohan's drawings were Rs. 4,000 and Rs. 6,000 respectively. Profit (Before charging interest on capital) during the year was Rs. 16,000. Calculate interest on capital @ 5% p.a. for the year ended 31st March, 2018. 

Answer:

Interest  on capital of Ram  =  20,000 × 5 / 100  = 1,000

Interest  on capital of Mohan  =  16,000 × 5 / 100  = 800

 Points of knowledge :

 Calculation of opening capital or capital at the beginning

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B6 

Points to Remember:

1.  Capital at the end is given in the question .so we have to calculate capital at the beginning by adding drawings and deducting net profit.

2.   When there is no profit sharing ratio at that time the profit sharing ratio will be equal.

3.    Interest on capital is to be found out on opening capital balances only.

 

Question 37:  Following is the extract of the Balance Sheet of Neelkanth and Mahadev as on 31st March, 2019.

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B7

During the year, Mahadev's drawings were Rs. 30,000. Profits during the year ended 31st March, 2019 is Rs.10,00,000. Calculate interest on capital @ 5% p.a. for the year ending 31st March, 2019. 

Answer:

calculation of interest of capital

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B8

Points to Remember:

  1. The Capital of both the partners are fixed as current accounts are given in the balance sheet.
  2. Hence interest on capital will be calculated on fixed capital balances.

 

Question 38:  From the following Balance Sheet of Long and Short, calculate interest on capital @ 8% p.a. for the year ended 31st March, 2019

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B9

During the year, Long withdrew Rs. 40,000 and Short withdrew Rs. 50,000. Profit for the year was Rs.1,50,000 out of which Rs.1,00,000 was transferred to General Reserve. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B10

points to Remember:

  1. Interest on capital is calculated on opening capital balances only.
  2. In the absence of any profit sharing ratio it will be taken as equal.
  3. Drawings given in the additional information has been deducted out of opening capital and drawings if given in the asset side of the balance sheet indicates no deduction of drawings out of capital.


Question 39:  Moil and Bhola contribute Rs. 20,000 and Rs. 10,000 respectively towards capital. They decide to allow interest on capital @ 6% p.a. Their respective share of profits is 2 : 3 and the net profit for the year is Rs. 1,500. Show distribution of profits:

(i) where there is no agreement except for interest on capitals; and
(ii) where there is an agreement that the interest on capital as a charge.
 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B11

Note: Since the amount of net profit is less than the total amount of interest on capital, So interest on capital will be allowed in the ratio of interest on capital amount.

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B12

Distribution of net loss in the profit and loss sharing ratio   i.e, 2 : 3 (given)

X’s Share (300 ᵡ 2/5 ) = Rs. 120

 

Y’s Share (300 ᵡ 3/5 ) = Rs. 180
 

Question 40:  Amit and Bramit started business on 1st April, 2018 with capitals of Rs. 15,00,000 and Rs. 9,00,000 respectively. On 1st October, 2018, they decided that their capitals should be Rs.12,00,000 each. The necessary adjustments in capitals were made by introducing or withdrawing by cheque. Interest on capital is allowed @ 8% p.a. Compute interest on capital for the year ended 31st March, 2019. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B13


Question 41:  Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2018 after closing the books of account, their Capital Accounts stood at Rs. 4,80,000 and Rs. 6,00,000 respectively. On 1st May, 2018, Simrat introduced an additional capital of Rs. 1,20,000 and Bir withdrew Rs. 60,000 form his capital. On 1st October, 2018, Simart withdrew Rs. 2,40,000 from his capital and Bir introduced Rs. 3,00,000 . Interest on capital is allowed at 6% p.a. Subsequently, it was discovered that interest on capital @ 6% p.a. had been omitted. The profits for the year ended 31st March, 2019 amounted to Rs. 2,40,000 and the partners' drawings had been: Simrat–Rs1,20,000 and Bir–Rs 60,000. Compute the interest on capital if the capitals are (a) Fixed, and (b) Fluctuating. 

Answer:

(A)  Computation of interest on capital if capitals are fixed

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B14

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B15

 

Profit and Loss Appropriation Account and Partner’s Capital Account


Question 42:  C and D are partners in a firm; C has contributed Rs. 1,00,000 and D Rs. 60,000 as capital. Interest in payable @ 6% p.a. and D is entitled to a salary of Rs. 3,000 per month. In the year ended 31st March, 2019 the profit was Rs. 80,000 before interest and salary. Divide the amount between C and D. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B16

Division of the amount between C and D:

C Will Get = Interest on Capital + Profit = 6,000 + 17,200 =  23,200

D will Get = Interest on Capital + Salary + Profit = 3,600 + 36,000 + 17,200 = 56,800

Points to Remember:

  1. According to the India Partnership Act, 1932, when no Profit Sharing Ratio of Partners Is not given in the question then the ratio of partners will be equal.

 

 

Question 43:  Amit and Vijay started a partnership business on 1st April,2017. Their capital contributions were Rs. 2,00,000 and Rs. 1,50,000 respectively. The Partnership Deed provided that:

(a) Interest on capital be allowed @ 10% p.a.
(b) Amit to get a salary of Rs. 2,000 per month and VijayRs3,000 per month.
(c) Profits are to be shared in the ratio of 3 : 2.
Profit for the year ended 31st March, 2018 before above appropriations wasRs2,16,000. Interest on drawings amounted to Rs 2,200 for Amit and Rs. 2,500 for Vijay.
Prepare Profit and Loss Appropriation Account.
 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B17


Question 44:  Show how the following will be recorded in the Capital Accounts of the Partners Sohan and Mohan when their capitals are fluctuating:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B18

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B19


Question 45:  Sajal and Kajal are partners sharing profits and losses in the ratio of 2 : 1. On 1st April, 2017 their Capitals were: Sajal–Rs 50,000 and Kajal–Rs 40,000.

Prepare Profit and Loss Appropriation Account and the Partners' Capital Accounts at the end of the year after considering the following items:
(a) Interest on Capital is to be allowed @ 5% p.a.
(b) Interest on the loan advanced by Kajal for the whole year, the amount of loan beingRs30,000.
(c) Interest on partners' drawings @ 6% p.a. Drawings: SajalRs10,000 and KajalRs8,000.
(d) 10% of the divisible profit is to be transferred to Reserve.
The net profit for the year ended 31st March, 2019 Rs. 68,460.
Note: Net profit means net profit after debit of interest on loan by the partner.
 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B20

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B21


Question 46:   A and B are partners sharing profits and losses in the ratio of 3 : 1. On 1st April, 2017, their capitals were: Rs. 50,000 and B Rs. 30,000. During the year ended 31st March, 2018 they earned a net profit of Rs. 50,000. The terms of partnership are:

(a) Interest on capital is to allowed @ 6% p.a.
(b) A will get a commission @ 2% on turnover.
(c) B will get a salary ofRs500 per month.
(d) B will get commission of 5% on profits after deduction of all expenses including such commission.
Partners' drawings for the year were: ARs8,000 and BRs6,000. Turnover for the year wasRs3,00,000. After considering the above facts, you are required to prepare Profit and Loss Appropriation Account and Partners' Capital Accounts.
 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B22

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B23

 

Question 47:  A, B and C were partners in a firm having capitals of Rs. 50,000; Rs. 50,000 and Rs.1,00,000 respectively. Their Current Account balances were A: Rs. 10,000; B: Rs. 5,000 and C: Rs. 2,000 (Dr.). According to the Partnership Deed the partners were entitled to an interest on Capital @ 10% p.a. C being the working partner was also entitled to a salary of Rs.12,000 p.a. The profits were to be capitals:

(a) The first Rs. 20,000 in proportion to their capitals.
(b) Next Rs. 30,000 in the ratio of 5 : 3 : 2.
(c) Remaining profits to be shared equally.
The firm earned net profit of Rs.1,72,000 before charging any of the above items.
Prepare Profit and Loss Appropriation Account and pass necessary Journal entry for the appropriation of profits.
 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B24

points of Knowledge:

1.   Profit Distribution among partners will be as follows

       A:B:C = First  Rs. 20,000 in Capital Ratio of 1:1:2

       A:B:C = Second Rs. 30,000 in given profit Sharing Ratio of 5:3:2 .

       A:B:C = Rest Rs. 1,40,000 – 50,000 = 90,000 in given ratio of 1:1:1

2.   Interest on Capital has been calculated on opening capitals.

3.   Current account balances are not required for solving problems.

 

Question 48:  A and B are partners sharing profits in the ratio of 3 : 2 with capitals ofRs50,000 andRs30,000 respectively. Interest on capital is agreed @ 6% p.a. B is to be allowed an annual salary ofRs2,500. During the year profit prior to interest on capital but after charging B's salary amounted toRs12,500. A provision of 5% of the profits if to be made in respect of Manager's Commission. 

Answer:

Here We Have To Prepare Profit And Loss Account To Charge Manager’s Commission As It Is An Expenditure But Not An Appropriation

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B25

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B26

 

Question 49:  P, Q and R are in a partnership and as at 1st April, 2017 their respective capitals were: Rs. 40,000, Rs. 30,000 and Rs. 30,000. Q is entitled to a salary of Rs. 6,000 and R- Rs4,000 p.a. payable before division of profits. Interest is allowed on capital @ 5% p.a. and is not charged on drawings. Of the divisible profits, P is entitled to 50% of the first Rs10,000, Q to 30% and R to 20%, rest of the profit are shared equally. Profits for the year ended 31st March, 2018, after debiting partners' salaries but before charging interest on capital was Rs. 21,000 and the partners had drawn Rs. 10,000 each on account of salaries, interest and profit.

Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018 showing the distribution of profit and the Capital Accounts of the partners. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B27

Points of Knowledge:

1.  First 10,000 distributed in ratio 50% : 30% : 20 %

2.  Rest 6,000 distributed in ratio 1:1:1


Question 50:  A, B and C are partners sharing profits and losses in the ratio of A 1/2, B 3/10, C 1/5 after providing for interest @ 5% on their respective capitals, viz., A Rs. 50,000; B Rs. 30,000 and C Rs. 20,000 and allowing B and C a salary of Rs. 5,000 each per annum. During the year ended 31st March, 2019, A has drawn Rs. 10,000 and B and C in addition to their salaries have drawn Rs. 2,500 and Rs. 1,000 respectively. Profit and Loss Account for the year ended 31st March, 2019 showed a net profit of Rs. 45,000 before charging. On 1st April, 2018, the balances in the current Account of the partners were A (Cr.) Rs. 4,500; B (Cr.) Rs. 1,500 and C (Cr.) Rs. 1,000. Interest is not charged on Drawings or Current Account balances. Show Partners' Capital and Current Accounts as at 31st March, 2019 after division of profits in accordance with the partnership agreement. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B28

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B29



Question 51:   Ali the Bahadur are partners in a firm sharing profits and losses as Ali 70% and Bahadur 30%. Their respective capitals as at 1st April, 2017 stand as Ali Rs. 25,000 and Bahadur Rs. 20,000. The partners are allowed interest on capitals @ 5% p.a. Drawings of the partners during the year ended 31st March, 2018 amounted to Rs. 3,500 and Rs. 2,500 respectively.

Profit for the year, before charging interest on capital and annual salary of Bahadur @ Rs. 3,000, amounted to Rs. 40,000, 10% of divisible profit is to be transferred to Reserve.

You are asked to show Partners' Current Account and Capital Accounts recording the above transactions. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B30

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B31

Question 52:  Amal, Bimal and kamal are three partners. On 1st April, 2017, their Capitals stood as: Amal Rs. 40,000, Bimal Rs. 30,000 and Kamal Rs. 25,000. It was decided that:

(a) They would receive interest on Capital @ 5% p.a.,
(b) Amal would get a salary ofRs250 per month,
(c) Bimal would receive commission @ 4% on net profit after deducting commission, interest on capital and salary, and
(d) After deducting all of these 10% of the profit should be transferred to the General Reserve.
Before the above items were taken into account, the profit for the year ended 31st March, 2018 was Rs. 33,360. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the Partners.
 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B32

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B33


Question 53:   Amit, Binita and Charu are three partners. On 1st April, 2018, their Capitals stood as: Amit Rs.1,00,000, Binita Rs. 2,00,000 and Charu Rs. 3,00,000. It was decided that:

(a) they would receive interest on Capital @ 5% p.a.,
(b) Amit would get a salary ofRs10,000 per month,
(c) Binita would receive commission @ 5% of net profit after deduction of commission, and
(d) 10% of the net profit would be transferred to the General Reserve.
Before the above items were taken into account, the profit for the year ended 31st March, 2018 was Rs. 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners.
 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B34
TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B35


Question 54:  Anita, Bimla and Cherry are three partners. On 1st April, 2017, their Capitals stood as: Anita Rs. 1,00,000, Bimla Rs. 2,00,000 and Cherry Rs. 3,00,000. It was decided that:

(a) they would receive interest on Capital @ 5% p.a.,
(b) Anita would get a salary ofRs5,000 per month,
(c) Bimla would receive commission @ 5% of net profit after deduction of commission, and
(d) 10% of the net divisible profit would be transferred to the General Reserve.
Before the above items were taken into account, the profit for the year ended 31st March, 2018 was Rs. 5,00,000. Prepare Profit and Loss Appropriation Account and the Capital Accounts of the partners.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B36

Points to Knowledge:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B37

Question 55:   Anshul and Asha are partners sharing profits and losses in the ratio of 3 : 2. Anshul being a non-working partner contributed Rs. 8,00,000 as her capital. Asha being a working partner did not contribute capital. The partnership Deed provides for interest on capital @ 5% and salary to every working partner @ Rs. 2,000 per month. Net profit before providing for interest on capital and partner's salary for the year ended 31st March, 2018 was Rs.32,000. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B38

Points to Remember:

  1. But the available profit of the firm before appropriations is 32,000. So we can appropriate to  Anshul : Asha for interest and salary up to the available profit of 32,000 without incurring any

Loss in the ratio of 40,000 : 24,000 = 5:3.

Fair Notes:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B39


Question 56:  X and Y entered into partnership on 1st April, 2017 and contributed Rs. 2,00,000 and Rs. 1,50,000 respectively as their capitals. On 1st October, 2017, X provided Rs. 50,000 as loan to the firm. As per the provisions of the partnership Deed:-

(i)   20% of Profits before charging interest on Drawings but after making appropriations to be transferred to General Reserve.
(ii)  Interest on capital at 12% p.a. and Interest on Drawings @ 10% p.a.
(iii) X to get monthly salary of Rs5,000 and Y to get salary of Rs. 22,500 per quarter.
(iv) X is entitled to a commission of 5% on sales. Sales for the year were Rs. 3,50,000.
(v)  Profit and Loss to be shared in the ratio of their capital contribution up to Rs. 1,75,000 and above Rs. 1,75,000 equally.
The profit for the year ended 31st March, 2018 before providing for any interest was Rs.4,61,000. The drawings of X and Y were Rs. 1,00,000 and Rs. 1,25,000 respectively.
Pass the necessary Journal entries relating to appropriation out of profit and Loss Appropriation Account and the Partners' Capital Accounts.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B40

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B41

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B42


Question 57:   Reya, Mona and Nisha shared profit in the ratio of 3:2:1. The profit for the last three years were Rs. 1,40,000; Rs. 84,000; and Rs. 1,06,000 respectively. These profit were by mistake shared equally. It is now decided to correct the error.

Give the necessary rectification Journal entry.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B43


 

Question 58:  P and Q were partners in a firm sharing profits and losses equally. Their fixed capitals were Rs. 2,00,000 and Rs. 3,00,000 respectively. The Partnership Deed provided for interest on capital @ 12% per annum. For the year ended 31st March, 2016, the profits of the firm were distributed without providing interest on capital.

Pass necessary adjustment entry to rectify the error.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B44


Question 59:   Profits earned by a partnership firm for the year ended 31st March, 2017 were distributed equally between the partners – Pankaj and Anu – without allowing interest on capital. Interest due on capital was Pankaj – Rs. 3,000 and Anu– Rs. 1,000. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B45


 

Question 60:  Azad and Benny are equal partners. Their capitals are Rs. 40,000 and Rs. 80,000 respectively. After the accounts for the year have been prepared, it is discovered that interest @ 5% p.a. as provided in the partnership agreement has not been credited to the Capital Accounts before distribution of profits. It is decided t make an adjustment entry in the beginning of the next year. Record the necessary journal entry.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B46


Question 61:  Ram, Mohan and Sohan sharing profits and losses equally have capitals of Rs.1,20,000, Rs. 90,000 and Rs. 60,000. For the year ended 31st March, 2018, interest was credited to them @ 6% instead of 5%.  Give adjustment Journal entry. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B47

Question 62:  Ram, Shyam and Mohan were partners in a firm sharing profits and losses in the ratio of 2: 1 : 2. Their capitals were fixed at Rs. 3,00,000, Rs. 1,00,000, Rs. 2,00,000. For the year ended 31st March, 2018, interest on capital was credited to them @ 9% instead of 10% p.a. The profit for the year  before charging interest was Rs. 2,50,000.

Show your working notes clearly and pass necessary adjustment entry.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B48

Points to Knowledge:

  • Here interest on capital was credited at 9% p.a. instead of 10% p.a. So, we can credit the partner 1% p.a.
TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B49

Question 63:   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:

(a) Interest on Capital @ 6% p.a.

(b) Interest on Drawings @ 6% p.a.

(c) 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.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B50

 

Question 64:   Mohan, Vijay and Anil are partners, the balances of their Capital Accounts being Rs. 30,000, Rs. 25,000 and Rs. 20,000 respectively. In arriving at these figures, the profits for the year ended 31st March, 2016, Rs. 24,000 had already been credited to partners in the proportion in which they shared profits. Their drawings were Rs. 5,000 (Mohan), Rs. 4,000 (Anil) during the year. Subsequently, the following omissions were noticed and it was decided to bring them into account:

(a) Interest on Capital @ 10% p.a.

(b) Interest on drawings: Mohan Rs. 250, Vijay Rs. 200 and Anil Rs. 150.

Make necessary corrections through a Journal entry and show your workings clearly. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B51


Question 65:  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:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B52

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. salary to Piya @ Rs. 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.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B53
 

Question 66:  The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2 : 2 : 1, have existed for same years. Ali wants that he should get equal share in the profits with Harry and Porter and he further wishes that the change in the profit-sharing ratio should come into effect retrospectively were for the three years. Harry and Porter have agreement on this account. The profits for the last three years were:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B54

 

Show adjustment of profits by means of a single adjustment Journal entry.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B55


Question 67:  On 31st March, 2018, after the closing of the accounts, the 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 discovered that interest on capital @ 5% had been omitted. Profit for the year ended 31st March, 2018 amounted to Rs. 60,000 and the partners' drawings had been P–Rs. 10,000, Q–Rs 7,500 and R–Rs 4,500. The profit-sharing ratio of P, Q and R is 3 : 2 : 1. Give necessary adjustment entry.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B56


Question 68:  A, B and C were partners. Their capitals were A–Rs 30,000; B–Rs 20,000 and C–Rs 10,000 respectively. According to the Partnership Deed, they were entitled to an interest on capital @ 5% p.a. In addition, B was also entitled to draw a salary of Rs. 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 profit for the year were Rs. 30,000 distributed in the ratio of capitals without providing for any of the above adjustments. The profits were to be shared in the ratio of 5:3:2.

Pass necessary adjustment entry showing the workings clearly. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B57

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B58TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B58


 

Question 69:  Mannu and shristhi are partners in a firm sharing profit in the ratio of 3 : 2. Following is the balance sheet of the firm as on 31st March 2018:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B59

Profit for the year ended 31st March, 2018 was Rs. 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B60


 

Question 70:  Mudit, Sudhir and Uday are partners in a firm sharing profit 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: 

(a)   Interest on Capital @ 2.5% p.a.; 

(b)   Salary to Mudit Rs. 18,000 p.a. and commission to Uday Rs. 12,000. 

(c)   Mudit was allowed a commission of 6% of divisible profit after charging such commission. 

Pass a rectifying Journal entry in the books of the firm. Show working clearly. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B61


 

Question 71:  A, B and C are partners in a firm. Net profit of the firm for the year ended 31st March, 2019 is Rs. 30,000, which has been duly distributed among the partners, in their agreed ratio of 3:1:1 respectively. It is noticed on 10th April, 2019 that the under mentioned transactions were not passed through the books of account of the firm for the year ended 31st March, 2019.

(a)   Interest on Capital @ 6% per annum, the capital of A, B and C being Rs. 50,000; Rs. 40,000 and Rs. 30,000 respectively.

(b)   Interest on drawings: A Rs. 350; B Rs. 250; C Rs. 150.

(c)   Partner’s Salaries; A Rs. 5,000; B Rs. 7,500.

(d)   Commission due to A (for some special transaction) Rs. 3,000.

You are required to pass a Journal entry, which will not affect Profit and Loss Account of the firm and rectify the position of partners inter se. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B62

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B63


Question 72:  On 31st March, 2014, the balances in the Capital Accounts of Saroj, Mahinder and Umar after making adjustments for profits and drawings, etc., wereRs80,000,Rs60,000,Rs40,000 respectively. Subsequently, it was discovered that the interest on capital and drawings has been omitted.

(a)   The profit for the year ended 31st March, 2014 was Rs. 80,000

(b)   During the year Saroj and Mahinder each withdrew a sum of Rs. 24,000 is equal instalments in the end @ 10% p.a.

(c)   The interest on drawings was to be charged @ 5% p.a. and interest on capital was to be allowed @ 10% p.a.

(d)   The profit sharing ratio among partners was 4:3:1.

Showing you’re working clearly, pass the necessary rectifying entry. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B64
TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B65


Question 73:  Capitals of A, B and C as on 31st March, 2019 amounted to Rs. 90,000, Rs. 3,30,000 and Rs. 6,60,000 respectively. The profits amounting Rs. 1,80,000 for the year 2017-18 were distributed in the ratio of 4 : 1 : 1 after allowing interest on Capital @ 10% p.a. During the year, each partner withdrew Rs. 3,60,000. The Partnership Deed was silent as to profit-sharing ratio but provided for Interest on capital @ 12%.

Pass the necessary adjustment entry showing the working clearly.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B66


 

Question 74:   The Capital Accounts of A and B stood at Rs. 4,00,000 and Rs. 3,00,000 respectively after necessary adjustments in respect of the drawings and the net profit for the year ended 31st March, 2018. It was subsequently discovered that 5% p.a. interest on capital and also drawings were not taken into account in arriving at the distributable profit. The drawings of the partners had been: A–Rs 12,000 drawn at the end of each quarter and B–Rs 18,000 drawn at the end of each half year.

The profit for the year as adjusted amounted to Rs. 2,00,000. The partners share profits in the ratio of 3 : 2. You are required to pass Journal entries and show adjusted Capital Accounts of the partners. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B67
TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B68



Manager is treated as Partner of the Firm with Retrospective Effect


Question 75:  X and Y are partners sharing profits and losses in the ratio of 3:2. They employed Z as their Manager to whom they paid a salary of Rs. 7,500 per month. Z had deposited Rs. 2,00,000 on which interest was payable Rs. 9% p.a. At the end off the accounting year (i.e., 31st March, 2018) 2017-18 (after division of the year's profits), it was decided that Z should be treated as a partner with effect from 1st April, 2014 with 1/6th share of profits, his deposit being considered as capital carrying interest @ 6% p.a. like capitals of other partners. The firm's profits and losses after allowing interest on capital were – 2014-15 Profit Rs. 5,90,000; 2015-16: Profit Rs. 6,26,000; 2016-17: Loss Rs. 40,000 and 2017-18: Profit Rs. 7,80,000.

Record necessary Journal entries to give effect to the above.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B69


Manager Admitted as a Partner and Guarantee of Profit


Question 76:  A and B are partners sharing profits in the ratio of 2 : 1. They decided to admit C, their manager, as a partner form 1st April, 2017, giving him 1/5th share of profit. C, while a manager, was getting a salary of Rs. 50,000 p.a. plus a commission of 10% of the net profit after charging such salary and commission. It was also agreed that any excess amount which C receives as a partner (over his salary and commission) will be borne by A. Profit for the year ended 31st March, 2018 amounted to Rs.6,44,000, before payment of salary and commission. Prepare Profit and Loss Appropriation Account. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B70

Excess amount payable to C will be personally borne by A. This excess amount of Rs. 24,800 then added back to A and B in 2:1 ratio. This has been done as C is already taking Rs. 1,28,800 but not 1,04,000.

The Net Profit has been distributed as follows:

C’s Share of Profit = 6,44,000 × 1/5 = 1,28,800

A’s Share of Profit   = (6,44,000- 1,28,800) × 2/3

= 24,800 + 24,800 × 2/3

= 3,43,467 – 24,800 + 16,533 = 3,35,200

B’ Share of Profit  = (6,44,000- 1,28,800) × 1/3 + 24,800 × 1/3

= 1,17,733 + 8,267

= 1,80,000

 

Question 77:  A, B and C were in partnership sharing profits and losses in the ratio of 4:2:1 respectively. It was provided that C's share in profit for a year would not be less then Rs. 7,500. The profit for the year ended 31st March, 2018 amounted to Rs. 31,500. You are required to show the appropriation among the partners. The profit and Loss Appropriation Account is not required.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B71

Points to Remember:

here the initial distribution of profit among 3,000 distributed or taken out of A : B in 4 : 2 or 2:1 ratio in the absence of any information in the question . No profit   and loss account is required. So we can appropriate the profit as shown below. 

A = 18,000 - 2,000 = 16,000

B = 9,000 - 1,000 = 8,000

C = 4,500 + 3,000 = 7,500


Question 78:  A and B are partners sharing profits in the ratio of 3 : 2. C was admitted for 1/6th share of profit with a minimum guaranteed amount of Rs. 10,000. At the close of the first financial year the firm earned a profit of Rs. 54,000. Find out the share of profit which A, B and C will get.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B72


Question 79:  X, Y and Z entered into partnership on 1st October, 2017 to share profits and losses in the ratio of 4:3:3. X, personally guaranteed that Z's share of profit after charging interest on capital @ 10% p.a. would not be less thenRs80,000 in any year. The capital contributions were: X–Rs 3,00,000, Y–Rs 2,00,000 and Z–Rs 1,50,000.

The profit for the year ended 31st March, 2019 amounted to Rs. 1,60,000. Prepare Profit and Loss Appropriation Account. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B76


Question 80:  A, B and C are partners in a firm. Their profit-sharing ratio is 2 : 2 : 1. C is guaranteed a minimum amount of Rs. 10,000 as share of profit every year. Any deficiency arising on that amount shall be met by B. The profits for the two years ended 31st March, 2017 and 2018 were Rs. 40,000 and Rs. 60,000 respectively. Prepare Profit and Loss Appropriation Account for the two years. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B77

 

Points of Knowledge:

1.     Deficiency of C is to be borne by B alone as stated in the question. 

 

Question 81:  A, B and C are partners sharing profits in the ratio of 5 : 4 : 1. C is given a guarantee that his minimum share of profit in any given year would be at least Rs. 5,000. Deficiency, if any, would be borne by A and B equally. Profit for the year ended 31st March, 2019 was Rs. 40,000.

Pass necessary Journal entries in the books of the firm. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B78


Question 82:  Vikas and Vivek were partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2017, they admitted Vandana as a new partner for 1/8th share in the profits with a guaranteed profit of Rs. 1,50,000. The new profit-sharing ratio between Vikas and Vivek will remain same but they decided to bear any deficiency on account of guarantee to Vandana in the ratio 3 : 2. The profit of the firm for the year ended 31st March, 2018 was Rs. 9,00,000. Prepare Profit and Loss Appropriation Account of Vikas, Vivek and Vandana for the year ended 31st March, 2018. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B79

 

Question 83:  Pranshu and Himanshu are partners sharing profits and losses in the ratio of 3 : 2 respectively. They admit Anshu as partner with 1/6 share in the profits of the firm. Pranshu personally guaranteed that Anshu's share of profit would not be less than Rs. 30,000 in any year. The net profit of the firm for the ear ending 31st March, 2013 was Rs. 90,000.

Prepare Profit and Loss Appropriation Account. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B80

Points of Knowledge:

1.     Calculation of Guarantee:

The net profit has been distributed as follows:

Anshu’s Share of profit = 90,000 × 1/6 = 15,000 + 15,000(received from Pranshu)

= 30,000

Pranshu‘s Share of profit = (90,000 – 15,000) × 3/5 = 45,000 – 15,000 (guarantee to anshu)

= 30,000

Himanshu’s Share of profit = (90,000 – 15,000) ×2/5

= 30,000

 

Question 84:   A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 : 1. They earned a profit of Rs. 30,000 during the year ended 31st March, 2019. Distribute profit among A, B and C if:

(a) C's share of profit is guaranteed to be Rs. 6,000 Minimum.

(b) Minimum profit payable to C amounting to Rs. 6,000 is guaranteed by A.

(c) Guaranteed minimum profit of Rs. 6,000 payable to C is guaranteed by B.

(d) Any deficiency after making payment of guaranteedRs6,000 will be borne by A and B in the ratio of 3 : 1.

Answer:


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B81


TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B82

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B83

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B84
TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B85


Question 85:  A and B are in partnership sharing profits and losses in the ratio of 3 : 2. They decided to admit C, their Manager, as a partner with effect from 1st April, 2017, giving him 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 the net profits after charging such salary and commission. 

In terms of the Partnership Deed, and 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, would have to be personally borne by A out of his share of profit. Profit for the year ended 31st March, 2019 amounted to Rs. 2,25,000. You are required to show Profit and Loss Appropriation Account for the year ended 31at March, 2018. 

Answer:

 TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B86

Points to Remember:
 
1.  Excess amount Payable to C will be personally borne by A. 
2. This excess amount of 11,250 then added back to A and B in 3 : 2 ratio . 
3.  This has been done as C is already taking 56,250 but not 45,000.  
4.  The Net profit has been distributed as follows: 
C’s share of profit = 2,25,000 × 1/4 = 56,250 
A’s share of profit = 2,25,000 – 56,250 × 3/5  = 1,01,250 
B’s share of profit = 2,25,000 - 56,250 ×2/5   = 56,250 

 

Question 86:  Asgar, Chaman and Dholu are partners in a firm. Their Capital Accounts stood at Rs. 6,00,000; Rs 5,00,000 and Rs. 4,00,000 respectively on 1st April, 2017. They shared Profits and Losses in the proportion of 4 : 2 : 3. Partners are entitled to interest on capital @ 8% per annum and salary to Chaman and Dholu @ Rs. 7,000 per month and Rs. 10,000 per quarter respectively as per the provision of the Partnership Deed. Sholu's share of profit (excluding interest on capital but including salary) is guaranteed at a minimum of Rs. 1,10,000 p.a. Any deficiency arising on that account shall be met by Asgar. The profit for the year ended 31st March, 2018 amounted to Rs. 4,24,000. 
Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018.  

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B87


Question 87:  P, Q and R entered into partnership on 1st April, 2015 to share profits and losses in the ratio of 12:8:5. It was provided that in no case R's share in profit be less then Rs. 30,000 p.a. The profits and losses for the period ended 31st March were: 2015-16 Profit Rs.1,20,000 2016-17 Profit Rs. 1,80,000; 2017-18 Loss Rs. 1,20,000.Pass the necessary Journal entries in the books of the firm.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B88

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B89


Question 88:  Ankur, Bhavna and Disha are partners in a firm. On 1st April, 2017, the balance in their Capital Accounts stood at Rs.14,00,000, Rs. 6,00,000 and Rs. 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 @ Rs. 50,000 p.a. and a commission of Rs. 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 Rs.1,70,000 p.a. Disha's share of profit (including interest on capital but excluding commission) is guaranteed at not less than Rs.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, 2018 amounted to Rs. 9,50,000.

Prepare Profit and Loss Appropriation Account for the year ended 31st March, 2018.

Answer:

 TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B90


Question 89:  Ankur and Bobby were into the business of providing software solutions in India. They were sharing profits and losses in the ratio 3 : 2. They admitted Rohit for a 1/5 share in the firm. Rohit, an alumni or IIT, Chennai would help them to expand their business to various South African countries where he had been working earlier. Rohit is guaranteed a minimum profit of Rs. 2,00,000 for the year. Any deficiency in Rohit's share is to be borne by Ankur and Bobby in the ratio 4 : 1. Loss for the year was Rs. 10,00,000. Pass the necessary Journal entries. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B91


Question 90:  Ajay, Binay and Chetan were partners sharing profits in the ratio of 3 : 3 : 2. The Partnership Deed provided for the following:

(i)   Salary of Rs. 2,000 per quarter to Ajay and Binay.

(ii) Chetan was entitled to a commission of Rs. 8,000.

(iii)  Binay was guaranteed a profit of Rs. 50,000 p.a.

The profit of the firm for the year ended 31st March, 2015 was Rs. 1,50,000 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 necessary rectifying entry for the above adjustments in the books of the firm. Show your workings clearly. 

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B92

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B93


Question 91:   The partners of a firm, Alia, Bhanu and Chand distributed the profits for the year ended 31st March, 2017, Rs. 80,000 in the ratio of 3:3:2 without providing for the following adjustments:

(a) Alia and Chand were entitled to a salary of Rs. 1,500 each p.a.

(b) Bhanu was entitled for a commission of Rs. 4,000.

(c) Bhanu and Chand had guaranteed a minimum profit of Rs. 35,000 p.a. to Alia any deficiency to borne equally by Bhanu and Chand.

Pass the necessary Journal entry for the above adjustments in the books of the firm. Show workings clearly.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B94

Working Note:-

Divisible Profits = Profits before Adjustment – (Salary + Bhanu’s Commission)

= 80,000 – (36,000 + 4,000) 

= Rs. 40,000

Alia’s Share of Profits = Rs. 40,000 × 3/8 = Rs. 15,000

Short amount in Alia’s Profits = Total Profit – Profit received

= Rs. 35,000 – 15,000 

= Rs. 20,000 

(paid by Bhanu and Chand in equal ratio 1 : 1)

Profit paid by Bhanu for of Alia = Rs. 20,000 ᵡ 1/2 = Rs. 10,000

Profit paid by Chand for of Alia = Rs. 20,000 ᵡ 1/2 = Rs. 10,000

Alia’s Profit = Rs. 40,000 × 3/8 = Rs. 15,000 + Rs. 10,000 + Rs. 10,000 = Rs. 35,000

Bhanu’s Profits = (40,000 ×  3/8) – 10,000 = Rs. 5,000

Chand’s Profits = (40,000 ×  3/8) – 10,000 = Nil

 
Question 92:  Three Chartered Accountants A, B and C form a partnership, profits being shared in the ratio of 3:2:1 subject to the following:

(a) C's share of profit guaranteed to be not less than Rs15,000 p.a.

(b) B gives a guarantee to the effect that gross fee earned by him for the firm shall be equal to his average gross fee of the proceeding five years when he was carrying on profession alone, which on an average works out at Rs. 25,000.

The profit for the first year of the partnership are Rs. 75,000. The gross fee earned by B for the firm is Rs. 16,000. You are required to show Profit and Loss Appropriation Account after giving effect to the above.

Answer:

TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021-B95

Points to Knowledge:

1.   B has got profit = 27,000 – 9,000 = 18,600

 

Points to Remember in this chapter:-

♦  Profit and Loss Appropriation Account is an extension of the Profit and Loss Account. The credit balance of profit and loss account is transferred to profit and loss appropriation account which is used for:

1.) Interest on the capital of partners

2.) Salaries or commission to partners

3.) Transferring part of profit to reserve.

4.) Distribution of profit among the partners in their profit sharing ratio.

 

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TS Grewal Accountancy Class 12 Solutions Volume 1
TS Grewal Solution Class 12 Chapter 1 Accounting for Partnership Firms Fundamentals
TS Grewal Solution Class 12 Chapter 1 Financial Statement of Not for Profit Organisations 2020 2021
TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals (2019-2020)
TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals 2020 2021
TS Grewal Solution Class 12 Chapter 2 Goodwill Nature and Valuation 2018 2019
TS Grewal Solution Class 12 Chapter 2 Goodwill Nature and Valuation (2018 2019)
TS Grewal Solution Class 12 Chapter 3 Change in Profit Sharing Ratio (2018 2019)
TS Grewal Solution Class 12 Chapter 3 Change in Profit Sharing Ratio 2018 2019
TS Grewal Solution Class 12 Chapter 3 Goodwill Nature and Valuation (2019 2020)
TS Grewal Solution Class 12 Chapter 3 Goodwill Nature and Valuation 2020 2021
TS Grewal Solution Class 12 Chapter 4 Change in Profit Sharing Ratio Among the Existing Partners (2019-2020)
TS Grewal Solution Class 12 Chapter 4 Change in Profit Sharing Ratio Among the Existing Partners 2020 2021
TS Grewal Solution Class 12 Chapter 5 Admission of a Partner
TS Grewal Solution Class 12 Chapter 6 Retirement of a Partner 2020 2021
TS Grewal Solution Class 12 Chapter 6 Retirement Death of a Partner 2019 2020
TS Grewal Solution Class 12 Chapter 7 Death of a Partner 2020 2021
TS Grewal Solution Class 12 Chapter 8 Dissolution of a Partnership Firm 2020 2021
TS Grewal Accountancy Class 12 Solutions Volume 2
TS Grewal Solution Class 12 Chapter 8 Company Accounts Accounting for Share Capital 2020 2021
TS Grewal Solution Class 12 Chapter 9 Company Accounts Issue of Debentures 2020 2021
TS Grewal Solution Class 12 Chapter 10 Company Accounts Redemption of Debentures 2020 2021
TS Grewal's Analysis of Financial Statements
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021
TS Grewal Solution Class 12 Chapter 2 Financial Statement Analysis 2020 2021
TS Grewal Solution Class 12 Chapter 3 Tools of Financial Statement Analysis 2020 2021
TS Grewal Solution Class 12 Chapter 4 Accounting Ratios 2020 2021
TS Grewal Solution Class 12 Chapter 5 Cash Flow Statement 2020 2021

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