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12th | Accounting for Partnership Firm – Fundamental | Question No. 11 To 15 | Ts Grewal Solution 2023-2024

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, 2022. Interest was to be charged @ 10% p.a. The firm took loan of `2,00,000 from Nirmal on 1st October, 2022. Before giving effect to the above, the firm incurred a loss of `10,000 for the year ended 31st March, 2023.

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

 

Answer;

 

Profit and Loss Account

year ended 31 March, 2023

 

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, 2022, 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, 2023.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, 2023.

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:Atul, Jetha and Tarak are partners sharing profits equally. Jetha was given loan by the firm on 1st July, 2022 of Rs. 6,00,000. Books are closed on 31st March. What Journal entries will be passed if;

(a) Rate of interest is not agreed; and

(b) Rate of interest to be charged is agreed @ 10% p.a?

 

Answer:

Case-A: No entry will be passed, in the absence of agreement, interest will not be charged on Loan to Partner.

 

Case-B

JOURNAL

Date

Particulars

 

LF

Dr. (Rs.)

Cr. (Rs.)

2023

 

 

 

 

 

March 31

Jesha's Capital A/c

Dr.

 

45,000

 

 

To Interest on Loan to Partner A/c

 

 

 

45,000

 

(Interest charged for nine months up to March, 2023)

 

 

 

 

 

 

 

March 31

Interest on Loan to Partner A/c

Dr.

 

45,000

 

 

 To Profit & Loss A/c

 

 

 

45,000

 

(Interest on Loan to Prem transferred to the credit of Profit & Loss Account)

 

 

 

 

 

 

 

 

 

Working notes:

Total interest on loan for 9 month = 6,00,000×10× 9/100 × 12= 45,000

 

Question 14: Parul, Paresh and Rahul are partners in a firm. Firm gave loan to Rahul on 1st February, 2022 of 6,00,000. Interest was agreed to be charged @ 6% p.a. Interest was paid by cheque up to February, 2023 by Rahul on 5th March, 2023 and balance was yet to be paid by him.

Pass the Journal entries for interest on loan to partner.

Answer:

JOURNAL

Date

Particulars

 

LF

Dr. (Rs.)

Cr. (Rs.)

2023

Bank Ac

Dr.

 

3,000

 

March 5

To Interest on Loan to Partner A/c

 

 

 

3,000

 

(Interest paid by Rahul for the  months of February, 2023)

 

 

 

 

March 31

Rahul's Capital A/c

Dr.

 

3,000

 

 

To Interest on Loan to Partner A/c

 

 

 

3,000

 

(Interest for March 2023 charged)

 

 

 

 

March 31

Interest on Loan to Partner A/c

Dr.

 

6,000

 

 

To Profit& Loss A/c

 

 

 

6,000

 

(Interest on Loan to Rahul transferred to the credit of Profit & Loss Account)

 

 

 

 

 

 

 

 

 

 

Working notes:

*Interest for 2 month = 6,00,000×2 × 6/100×12=6000

*Interest for month of February, which is to be paid by cheque = 6000 × 1 / 2= 3,000

43. B and C are partners sharing profits equally. C regularly withdrew 5,000 per month in the beginning of the month for si× months ended 30th September, 2022. Calculate interest on drawings @ 12% p.a. for the year ended 31st March, 2023.

Answer:

Monthly drawing = 5,000

Total drawing = 30,000

 

Interest on drawing= 30000×12× 9.5/100×12= 2,850

Average month = 12 + 7 / 2= 9.5

 

Question 15:

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:

WN1Calculation 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 2Calculation 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

 

 

Ts Grewal Solution 2023-2024

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Class 12 / Volume – I

Chapter 1 – Accounting For Partnership Firms Fundamentals

 

Question No. 1 To 5
Question No. 6 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

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Question No. 71 To 75

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