Question
6:
Sita and Geeta are partners in a firm sharing profits in the ratio
of 3 : 2. They had advanced to the firm a sum of ` 30,000 as a loan in their
profit-sharing ratio on 1st October, 2024. 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:
Amount
advanced by the Partners = ` 30,000
Profit
sharing ratio = 3 : 2
Advanced by Sita
=30,000×3/5=18,000
Advanced by Geeta
=30,000×2/5=12,000
Time Period
(from October 01, 2024 toMarch 31, 2024) = 6 months
Interest
rate = 6% p.a.
Calculation of Interest on Advances
Interest on Sita' s
advance=18,000×6/100×6/12=540
Interest on Geeta' s
advance=12,000×6/100×6/12=360
Note: In
the absence of a partnership agreement regardingrate
of interest on loans and advances, interest is provided at 6% p.a.
Question
7:
Bat and Ball
are partners sharing the profits in the ratio of 2 : 3
with capitals of ` 1,20,000 and ` 60,000 respectively. On 1st October,
2024, Bat and Ball gave loans of `
2,40,000 and ` 1,20,000 respectively to the firm.
Bat had allowed the firm to use his property for business for a monthly rent of ` 5,000. The loss for the year
ended 31st March, 2025 before rent and interest amounted to `
9,000. Show distribution of profit/loss.
Answer:
|
Profit
and Loss Account for the year ended March 31, 2025 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
( `) |
Particulars |
( `) |
|
|
Loss (before Rent and interest) |
9,000 |
|
|
|
|
Rent (5,000×12) |
60,000 |
By
P&L Appropriation A/c |
|
|
|
Interest on Bat’s loan |
7,200 |
(Loss transferred to Profit and Loss
A/c) |
|
|
|
Interest on Ball’s loan |
3,600 |
|
|
79,800 |
|
|
79,800 |
|
79,800 |
|
|
|
|
|
|
|
|
Profit
and Loss Appropriation Account for the year ended March 31, 2025 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
( `) |
Particulars |
( `) |
|
|
To P&L A/c |
79,800 |
|
|
|
|
(Net loss transferred
from P&L a/c) |
60,000 |
Loss transferred to: |
|
|
|
|
7,200 |
Bat’s Capital A/c |
31,920 |
|
|
|
3,600 |
Ball’s Capital A/c |
47,880 |
79,800 |
|
|
79,800 |
|
79,800 |
|
|
|
|
|
|
|
Working
Notes:
WN 1Interest on Partner’s Loan
Interest on Bat' sloan=2,40,000×6/100×6/12=7,200
Interest on Ball's loan=1,20,000×6/100×6/12=3,600
WN 2Distribution of Loss to the
Partners
Loss after
Interest on Partners’ Loan = 9,000 + 60,000 + 7,200 + 3,600 = ` 19,800
Bat's Share of Loss=79,800×2/5=` 31,920
Ball's Share of Loss=79,800×3/5=` 47,880
Question
8:
Akhil,
Sunil and Parvesh are partners sharing profits in the
ratio of 3:2:1. Opening balance of loan by Sunil Account was `3,00,000.
Interest payable was agreed @ 10% p.a. Interest was paid by cheque
up to February, 2025 on 1st March, 2025 and balance was yet to be paid. Pass
the Journal entries for interest on loan by partner.
Answer:
|
JOURNAL |
|||||
|
Date |
Particulars |
|
LF |
Dr. (Rs.) |
Cr. (Rs.) |
|
2025 |
|
|
|
|
|
|
March 31 |
Interest on Loan by Partner A/c |
Dr. |
|
27,500 |
|
|
|
To Bank A/C |
|
|
|
27,500 |
|
|
(Interest paid for si×
months up to February, 2024) |
|
|
|
|
|
March 31 |
Interest on Loan by Partner A/c |
Dr. |
|
30,000 |
|
|
|
To Loan by Vijay A/c |
|
|
|
30,000 |
|
|
(Interest for March, 2024 provided) |
|
|
|
|
|
|
Profit & Loss A/c |
Dr. |
|
30,000 |
|
|
|
To Interest on Loan by Partner A/c |
|
|
|
30,000 |
|
|
(Interest on Loan by Vijay transferred
to the debit of Profit & Loss Account) |
|
|
|
|
|
|
|
|
|
|
|
Working
notes:
Loan by
partner Sunil 3,00,000
Total
interest on loan for 12 month = 3,00,000×10/100=30,000
Amount of
interest paid from beginning of year to the end of February
for11 month
by cheque=3,00,000×10/100×11/12=27,500
Question 9;
Akhil and Bimal are partners sharing profits in the ratio of 3 :2. Akhil gave loan to the firm
of `1,00,000 on
1st January, 2025. On the same date, the firm gave loan to Bimal
of `1,00,000.
They do not have an agreement as to interest.
Akhil had
also given his personal property for firm’s godown at a
monthly rent of `5,000.
Firm earns
profit of `1,03,000 (before above adjustments)
for the year ended 31st March, 2025.Show the distribution of profit for the
year.
Answer;
|
Profit and loss account year ended 31 March, 2025 |
|||
|
Particulars |
` |
Particulars |
` |
|
To
interest on loan (Akhil) 1,00,000×6/100×3/12 To
Rent (Akhil) 5,000×12 To
Balance C/d |
1,500 60,000 41,500 |
By
net profit b/d |
1,03,000 |
|
|
1,03,000 |
|
1,03,000 |
|
Profit and loss appropriation account year ended 31 March, 2025 |
|||
|
Particulars |
` |
Particulars |
` |
|
To Profit transferred Akhil’s Capital
-41,500×3/5 Bimal’s Capital
-41,500×2/5 |
24,900 16,600 |
By Balance b/d |
41,500 |
|
|
41,500 |
|
41,500 |
Question 10;
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, 2024. Interest was to be charged @ 10% p.a. The firm took loan of `2,00,000
from Nirmal on 1st December, 2024. Before giving
effect to the above, the firm incurred a loss of `10,000 for the year ended 31st March,
2025. Determine the amount to be transferred to Profit and Loss Appropriation
Account.
Answer:
|
Profit and Loss Account year ended 31 March, 2025 |
|||
|
Particulars |
` |
Particulars |
` |
|
To Net Loss
To interest
on loan (Nirmal) 2,00,000×6/100×4/12 To Net
Profit transferred- (Net Profit transferred to P&L
Appropriation a/c) |
10,000 4,000 36,000 |
By interest
on loan (Pawan) 5,00,000×10/100 |
50,000 |
|
|
50,000 |
|
50,000 |