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12th | Accounting For Partnership Firms Fundamentals | Question No. 11 to 15 | Ts Grewal Solution 2022-2023

Double Entry Book Keeping Ts Grewal Vol. 1 2019 Solutions for Class 12 Commerce ACCOUNTANCY Chapter 2 - Accounting For Partnership Firms Fundamentals

Question 11;


Nirmal and Pawan are partners sharing profits in the ratio of 3 :2. The firm had given loan to Pawan of `5,00,000 on 1st April, 2021. Interest was to be charged @ 10% p.a. The firm took loan of `2,00,000 from Nirmal on 1st October, 2021. Before giving effect to the above, the firm incurred a loss of `10,000 for the year ended 31st March, 2022.

Determine the amount to be transferred to Profit and Loss Appropriation Account.

 

Answer;


 

Profit and Loss Account year ended 31 March, 2022

 

Particulars

`

Particulars

`

To  Net Loss 

To interest on loan (Nirmal)

2,00,000×6/100×6/12

To Net Profit transferred-

(Net Profit transferred to P&L Appropriation a/c)

10,000

 

6,000

34,000

by interest on loan (Pawan)

5,00,000×10/100

 

50,000

 

50,000

 

50,000

 

Question 12;


Ankit, Bhanu and Charu are partners in a firm sharing profits and losses equally with capital of  `2,50,000 each. On 1st October, 2021, Ankit and Bhanu gave loans of  `2,50,000 each to the firm whereas Charu took a loan of  `1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April, 2022.The firm closes its books on 31st March each year.

Pass the Journal entries in the books of the firm for the year ended 31st March, 2022.

Answer;


Date

Particulars

 

L.F.

Dr. `

Cr. `

31 March

Interest  on loan     A/c    

     To Akhil’s loan A/c

     To Bhanu’s loan A/c

(Being interest on loan provided @ 6% p.a. on 2,50,000 for six month)

Dr.

 

 

 

 

Dr.

 

15,000

 

 

 

 

3,000

 

 

7,500

7,500

 

 

 

3,000

Charu’s capital      A/c

     To  Interest  on loan     A/c    

(Being interest on loan allowed to Charu@ 6% p.a. on 1,00,000 for six month)

 

 

 

 

18,000

18,000

 

Question 13:  


Vinod and Mohan are partners. Vinod 's Capital is ` 1,00,000 and Mohan 's Capital is  ` 60,000. Interest on capital is payable @ 6% p.a. Mohan is entitled to a salary of ` 3,000 per month. Profit for the current year before interest and salary to Mohan is ` 80,000.
Prepare Profit and Loss Appropriation Account.

Answer:


Profit and Loss Appropriation Account

Dr.

 

 

Cr.

Particulars

`

Particulars

`

Interest on Capital:

 

Profit and Loss A/c (Net Profit)

80,000

Vinod’s Capital A/c

6,000

 

 

 

Mohan’s Capital A/c

3,600

9,600

 

 

Salary to B (` 3,000 × 12)

36,000

 

 

Profit transferred to:

 

 

 

Vinod’s Capital A/c

17,200

 

 

 

Mohan’s Capital A/c

17,200

34,400

 

 

 

80,000

 

80,000

 

 

 

 


Working Notes:

WN1 Calculation of Interest on Capital

Interest on Vinod’s loan=1,00,000×6/100×6/12=6,000

Interest on Mohan's loan=60,000×6/100×6/12=3,600

 

WN 2 Calculation of Profit Share of each Partner

Divisible Profit = 80,000 9,600 36,000 = 34,400

 

Profit share of Vinod and Mohan =34,400×1/2=17,200

 

Question 14:


X, Y and Z are partners in a firm sharing profits in 2 : 2 : 1 ratio. The fixed capitals of the partners were : X  `5,00,000; Y  ` 5,00,000 and Z  ` 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  ` 2,000 per month. The profit of the firm for the year ended 31st March, 2022 after debiting Z's salary was  ` 4,00,000.
Prepare Profit and Loss Appropriation Account.

Answer:


Profit and Loss Appropriation Account
for the year ended 31st March 2022

Dr.                           

 

 

Cr.

Particulars

`

Particulars

`

Interest on Capital:

 

Profit and Loss A/c
(Net Profit after Z’s salary)

4,00,000

X’s Capital A/c

50,000

 

 

 

Y’s Capital A/c

50,000

 

 

 

 Z’s Capital A/c

25,000

1,25000

 

 

Profit transferred to:

 

 

 

X’s Capital A/c

1,10,000

 

 

 

Y’s Capital A/c

1,10,000

 

 

 

Z’s Capital A/c

55,000

2,75,000

 

 

 

4,00,000

 

4,00,000

 

 

 

 


Working Notes:

WN 1 Salary to Z has not been debited to Profit and Loss Appropriation Account. This is because Profit of
` 4,00,000 is given after adjusting the Z’s salary.

WN 2 Calculation of Interest on Capital

 

Interest on X^' s Capital=5,00,000×10/100=50,000

Interest on Y's Capital=5,00,000×10/100=50,000

Interest on Z' s Capital=2,50,000×10/100=25,000

           
WN 3 Calculation of Profit Share of each Partner

Divisible of Profit after Interest on Capital = ` 4,00,000- ` 1,25,000 = ` 2,75,000

Profit sharing ratio = 2 : 2 : 1

Profit share of  X' s =5,00,000×2/5=1,10,000

Profit share of  Y' s =5,00,000×2/5=1,10,000

Profit share of  Z' s=5,00,000×1/5=55,000

 

Question 15:


X and Y are partners sharing profits in the ratio of 3 : 2 with capitals of  ` 8,00,000 and  ` 6,00,000 respectively. Interest on capital is agreed @ 5% p.a. Y is to be allowed an annual salary of  ` 60,000 which has not been withdrawn. Profit for the year ended 31st March, 2022 before interest on capital but after charging Y's salary amounted to  ` 2,40,000.
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:


Profit and Loss Account
for the year ended 31st March 2022

Dr.

 

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Manager’s Commission

(3,00,000×5%)

15,000

Profit and Loss A/c
(Net Profit after Y’s salary)

2,40,000

 

 

Y’s Salary

60,000

Profit transferred to Profit and Loss

 

 

 

Appropriation A/c

2,85,000

 

 

 

3,00,000

 

3,00,000

 

 

 

 

 

Profit and Loss Appropriation Account
for the year ended 31st March 2022

Dr.

 

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Salary to Y

60,000

Profit and Loss Adjustment A/c

2,85,000

Interest on Capital:

 

(After manager’s commission)

 

X’s Capital A/c

40,000

 

 

 

Y’s Capital A/c

30,000

70,000

 

 

Profit transferred to:

 

 

 

X’s Capital A/c

93,000

 

 

 

Y’s Capital A/c

62,000

1,55,000

 

 

 

2,85,000

 

2,85,000

 

 

 

 

Working Notes:

WN 1 Calculation of Manager’s Commission

Profit for making Managers’ Commission = 2,40,000 + 60,000 (Y’s Salary) =  `3,00,000

Manager's Commission=₹3,00,000×5/100=₹15,000

WN 2 Calculation of Interest on Capital

Interest on X's Capital A/c=₹8,00,000×5/100= ₹40,000 Interest on Y's Capital A/c=₹6,00,000×5/100=₹30,000

 

WN 3 Calculation of Profit Share of each Partner

Profit available for distribution = 2,85,000 - ` 60,000 - ` 70,000 =  `1,55,000

X's Share of Profit=₹1,55,000×3/5=₹93,000

Y's Share of Profit=₹1,55,000×2/5=₹62,000

 

 

Ts Grewal Solution 2022-2023

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Class 12 / Volume – I

Chapter 1 – Accounting For Partnership Firms Fundamentals

 

Question No. 1 To 5
Question No. 5 To 10
Question No. 11 To 15
Question No. 16 To 20
Question No. 21 To 25
Question No. 26 To 30
Question No. 31 To 35
Question No. 36 To 40
Question No. 41 To 45
Question No. 46 To 50
Question No. 51 To 55

Question No. 56 To 60

Question No. 61 To 65
Question No. 66 To 70
Question No. 71 To 75

Question No. 76 To 80
Question No. 81 To 85
Question No. 86 To 88

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12th TS Grewal’s Accountancy Solutions

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