Solutions Fundamentals of Partnership TS Grewal Class 12 [2025-26]
Table of Contents
Questions No. 1 to 5
Q1 : In the absence of Partnership Deed, state…… given to partners?
Answer 1:
(a) In the absence of a Partnership Deed, provisions of the Indian Partnership Act of 1932 are applied, and no Salaries to partners are provided.
(b) In the absence of a Partnership Deed, provisions of the Indian Partnership Act, 1932 are applied, and no interest on the partner’s capital is provided.
(c) In the absence of the partnership Deed, provisions of the Indian Partnership Act of 1932 are applied. Thus, interest on the loan by the partner would be provided @ 6% p.a.
(d) In the absence of the partnership Deed, provisions of the Indian Partnership Act of 1932 are applied. Thus, Profit would be divided equally among partners.
(e) In the absence of a partnership Deed, provisions of the Indian Partnership Act of 1932 are applied, and no interest on the partner’s drawings is provided.
(f) In the absence of a Partnership Deed, provisions of the Indian Partnership Act of 1932 are applied, and no interest on loans to partners by the firm would be charged.
Q2: Mahesh, Ramesh and Suresh …….. disputes be settled.
Answer
(a) In the absence of a partnership deed. The provisions of the Indian Partnership Act 1932 would apply. No interest on the partner’s capital would be allowed. Ramesh and Suresh both are correct.
(b) In the absence of a partnership deed. The provisions of the Indian Partnership Act 1932 would apply. No salary would be allowed to partners. Mahesh and Suresh are correct.
(c) In the absence of a partnership deed. The provisions of the Indian Partnership Act 1932 would apply. No interest on a loan to a partner by the firm is charged. Mahesh and Ramesh are incorrect.
(d) In the absence of a partnership deed. Provisions of the Indian Partnership Act 1932 would apply. The profit-sharing ratio would be equal (1:1:1). Mahesh and Suresh are incorrect.
Q3: Following differences have arisen ……. to pay the interest.
Answer
(a) If any partner uses the money of the firm and earned a profit. He has to pay back the used money with profit. hence, P has to back ₹ 55,000 to the firm.
(b) If any partner uses the firm money and incurred a loss. He has to bear the loss and the full amount of money taken by the partner has to return back the firm. Hence, Q has to pay ₹10,000 to the firm.
(c) any business decision is decided by the majority. Hence P and Q want to purchase goods from star Ltd is accepted as there are only 3 partners and the majority win.
(d) W as a partner can not be admitted as to admit a new partner, all partners must agree.
(e) In the absence of a partnership deed. Provisions of the Indian Partnership Act 1932 would apply. Only a 6% p.a rate of interest on the loan of partners to the firm would be charged.
Hence. In the place of 10% p.a, only a 6% p.a rate of interest would be charged.
Q4: Barun, Tarun and Shivam are partners ……… to which Tarun obects.
Answer
(a) In the case of the absence of a Partnership deed, no interest on capital would be allowed.
(b) In the case of the absence of a partnership deed, Tarun’s son Deep would not be admitted. as all partners do not agree.
(c) In the case of the absence of a Partnership deed, no interest on a loan to Shivam from the firm is charged.
(d) In the case of the absence of a partnership deed, no interest on drawing would be charged.
Q5: Harshad and Dhiman are in partnership ……… Profit and Loss Appropriation Account.
Answer
Harshad Claims
(i) In the absence of a partnership deed, no interest on capital is provided and interest on a loan of the partner is given @ 6% p.a.
(ii) In the absence of a partnership deed, profit should be distributed equally.
Dhiman Claims
(i) In the absence of a partnership deed, his claim is right that profits should be shared equally.
(ii) In the absence of a partnership deed, no remuneration will be allowed to Dhiman.
(iv) In the absence of a partnership deed, no interest on capital is provided and interest on a loan of the partner is given @ 6% p.a.
Solutions Fundamentals of Partnership TS Grewal Class 12 [2025-26]
Interest on Loan by Partner to the Firm
Question No. 6 to 8
Q6: Sita and Gita are partners …….. every year on 31st March.
Answer
Interest on Sita’s Loan to firm = 30,000 \(\times\) \(\frac{3}{5}\) \(\times\) \(\frac{6}{100}\) \(\times\)\(\frac{6}{12}\) = ₹ 540
Interest on Gita’s Loan to firm = 30,000 \(\times\) \(\frac{2}{5}\) \(\times\) \(\frac{6}{100}\) \(\times\)\(\frac{6}{12}\) = ₹ 360
Q7. 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. Loss for the year ended 31st March 2025 before rent and interest amounted to ₹ 9,000. Show distribution of profit/Loss.
Answer
Interest on Bat’s Loan = 2,40,000 \(\times \frac{6}{100} \times \frac{6}{12}\) = 7,200
Interest on Ball’s Loan = 1,20,000 \(\times \frac{6}{100} \times \frac{6}{12}\) = 3,600
Distribution of Profit/Loss
Loss + Interest on Loan + Rent on Bat’s property = 9,000 + (7,200 + 3,600) + 60,000 = 79,800
Bat’s share = 79,800 \(\times \frac{2}{5}\) = 31,920
Ball’s share = 79,800 \(\times \frac{3}{5}\) = 47,880
Q8: 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 the balance was yet to be paid.
Pass the Journal entries for interest on the loan by the partner.
Answer
Journal Entries
1st March \(\quad\) Interest on Loan A/c Dr. \(\quad\) 27,500
\(\quad\quad\quad\quad\quad\quad\quad\) To Bank A/c \(\quad\quad\quad\quad\quad\quad\) 27,500
(Interest on Sunil’s loan paid)
___________________________________________________
31st March \(\quad\) Interest on Loan A/c Dr. \(\quad\) 2,500
\(\quad\quad\quad\quad\quad\quad\quad\) To Sunil’s Loan A/c \(\quad\quad\quad\quad\) 2,500
(Interest on Sunil’s loan is due)
___________________________________________________
31st March \(\quad\) Profit & Loss A/c Dr. \(\quad\) 30,000
\(\quad\quad\quad\quad\quad\quad\quad\) To Interest on Loan A/c \(\quad\quad\quad\quad\) 30,000
(Interest on Sunil’s loan to firm transferred to Profit & Loss A/c)
___________________________________________________
Calculation of Interest on Loan By Sunil
1st April to 28th February 2023 = 3,00,000 \(\times \frac{10}{100} \frac{11}{12}\quad\quad\)= 27,500
1st March to 31st March 2023 = 3,00,000 \(\times \frac{10}{100} \frac{1}{12}\quad\quad\quad\)= 2,500
Total Interst on Sunil’s loan to firm \(\quad\quad\quad\quad\quad\quad\quad\quad\quad\) 30,000
Solutions Fundamentals of Partnership TS Grewal Class 12 [2025-26]
Interest on Loan to the Firm by Partner and Loan by the Firm to Partner
Questions No. 9 to 13
Q9:Akhil and Bimal are partners sharing profits in the ratio of 3 : 2. Akhil gave a loan to the firm of ₹ 1,00,000 on 1st January 2025. On the same date, the firm gave a loan to Bimal of ₹ 1,00,000. They do not have an agreement as to interest.
Akhil had also given his personal property for the firm’s godown at a monthly rent of ₹ 5,000.
Firm earned a profit of ₹ 1,03,000 (before the above adjustments) for the year ended 31st March 2025. Show the distribution of profit for the year.
Answer
Interest on Akhil’s loan = 1,00,000 \(\times \frac{6}{100} \times \frac{3}{12}\) = 1,500
Rent on Akhil’s property = 5000 \(\times\) 12 = 60,000
Distributable Profit = 1,03,000 – 1,500 – 60,000 = 41,500
Akhil’s share in profit = 41,500 \(\times \frac{3}{5}\) = 24,900
Bimal’s share in profit = 41,500 \(\times \frac{2}{5}\) = 16,600
Q10. Nirmal and Pawan are partners ………. to Profit & Loss Appropriation Account.
Answer
Q11. Ankit, Bhanu and Charu are partners ………. fro the year ended 31st March, 2025.
Answer
Q12. Atul, Jetha and Tarak are partners ……… is agreed @ 10% p.a.
Answer
Q13. Parul, Paresh and Rahul are partners …… for interest on loan to partners.
Answer
Solutions Fundamentals of Partnership TS Grewal Class 12 [2025-26]
Profit and Loss Appropriation Account
Questions No. 14 to 19
Q14. Vinod and Mohan are partners. ……. Prepare Profit & Loss Appropriation Account.
Q15. X, Y and Z are partners in a firm …… Prepare Profit & Loss Appropriation Account.
Q16. X and Y are partners sharing profits ……. showing the allocation of profits.
Q17. Atul and Mithun are partners sharing …… Prepare Profit & Loss Appropriation Account.
Q18. Reema and Seema are partners sharing ……… for the year ended 31st March, 2025.
Q19. Bhanu and Partap are partners sharing profits equally …… Prepare Profit & Loss Appropriation Account.
Partners’ Capital Accounts
Fixed Capital
Question Nos. 20 to 22
Q20. Amit and Sumit entered into partnership …… for allowing interst on capital.
Q21. Kamal and Kapil are partners having fixed capitals of ₹ 5,00,000 each as on 1st April 2024. Kamal introduced further capital of ₹ 1,00,000 on 1st January 2025 whereas Kapil withdrew ₹ 1,00,000 on 1st January 2025 out of capital.
Interest on capital is to be allowed @ 10% p.a.
The firm earned a net profit of ₹ 6,00,000 for the year ended 31st March 2025.
Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account.
Solution:
Journal
Interest on Capital A/c Dr. 1,00,000
\(\quad\)To Kamal’s Capital A/c \(\quad\) 52,500
\(\quad\) To Kapil’s Capital A/c \(\quad\) 47,500
Profit & Loss Appropriation A/c
for the year ended 31st March 2025
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Interest on Capital Kamal’s Current A/c Kapil’s Current A/c | 52,500 47,500 | By Net Profit | 6,00,000 |
| To Profit transferred to: Kamal’s Current A/c Kapil’s Current A/c | 2,50,000 2,50,000 | ||
| Total | 6,00,000 | Total | 6,00,000 |
Q22. Simran and Reema are partners sharing profits …… prepare Profit & Loss Appropriation Account for the year.
Fluctuating Capital
Q23. Anita and Ankita are partners sharing profits ……… for transfer of interst on capital.
Q24. Ashish and Aakash are partners sharing profits …… prepare Profit & Loss Appropriation Account.
Q25. Naresh and Sukesh are partners with capitals …….. and distribution of profit.
When Interest on Capital is an Appropriation and Profits are Inadequate
Q26. On 1st April, 2013, Jay and Vijay entered into …….. Appropriation Account’ of Jay and Vijay for the year.
Calculation on Interest on Partner’s Capitals
Q27. A and B are partners in the ratio of 3 : 2……. Show your workings clearly.
Q28. Vinod and Mohan are partners sharing …….. Profit during the year was ₹ 64,000.
Q29. From the followng Balance Sheet …… transferred to General Reserve.
Q30. Amit and Bramit started business ……. for the year ended 31st March, 2025.
Q31. Sumit and Namit are partners sharing …….. the profit for the year ₹ 6,000.
Salary or Commission to Partners
Q32. Shiv, Mohan and Gopal are partners ………. commission payable to Shiv.
Q33. Abha, Bobby and Vineet are partners shaing ……. commission payable to Vineet.
Q34. A, B, C and D are partners ……. of profits among the partners.
Q35. X and Y are partners in a firm …… Show distribution of profit.
Calculation of Interest on Partner’s Drawings, Amount of Drawings and Rate of Interest on drawings
Q36. Ram and Mohan, two partners, …….. of interest chargeable from each partner?
Q37. Brij and Mohan are partners …….. partners using the appropriate formula.
Q38. Dev withdrew ₹ 10,000 on 15th …….. interest on Dev’s Drawings.
Q39. One of the partners in a partnership …….. drawings at the rate of 6% per annum.
Q40. A and B are partners sharing profits equally………… of six months ended 30th September, 2024.
Q41. A and B are partners sharing profits equally………… of six months ended 30th September, 2024.
Q42. B and C are partners sharing profits equally ……….. for the year ended 31st March, 2025.
Q43. Calculate interest on drawings of Sanjay ………… during the middle of eah quarter.
Q44. The capital accounts of Tisha and Divya showed ……… for the year ended 31st March, 2025.
Q45. A, B and C are partners. ……….. for the year ended 31st March, 2025.
Q46. Piyush, Harmesh and Atul are partners. ………. interest charged on drawings.
Profit & Loss Appropriation Account and Partner’s Capital Accounts
Q47. Amit and Vijay started a partnership ………… Prepare Profit & Loss Appropriation Account.
Q48. A and B are partners sharing pfoits and losses ………… and Partner’s Capital Accounts.
Q49. A, B and C were partners in a firm having ………. for the appropriation of profit.
Q50. Yadu, Vidu and Radhu were partners …….. for the year ending 31st March, 2019.
Transfer of Profit to Reserve
Q51. Amit, Binita and Charu are three partners. ……… the capital Accoutns of the Partners.
Q52. Sajajl and Kagal are partners ………. ended 31st March, 2025 is ₹ 7,02,600.
Q53. Ali and Bahadur are partners in a firm ……… recording the above transactions.
Appropriations more than Available Profits
Q54. Neera and Surya are partners sharing profits and losses ……… Show the distribution of profits.
Q55. Kabir, Zoravar and Parul are partners ……… for the year ended 31st March, 2025.
Adjusting and Transfer Entries
Q56. Aditi, Bobby and Krish were Partners ………. as the case may be.
Adjustments for Incorrect Appropriations in the Past (Past Adustments)
Q57. Reya, Mona and Nisha shared profits ……. rectification Journal entry.
Q58. Atul and Gita were partners in a firm ……… Show your workings clearly.
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