Solution of Q 59 Fundamentals of Partnership Firm TS Grewal 2023-24 [CBSE]
Step-by-step solution of Question 59, Chapter 1 Accounting for Partnership Firms – Fundamentals, TS Grewal Class 12 Accountancy 2023-24 for the CBSE Board.
Question 59
X and Y entered into partnership on 1st April, 2018. Their capitals as on 1st April, 2022 were ₹2,00,000 and ₹1,50,000 respectively. On 1st October, 2022, X gave ₹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 was to be transferred to General Reserve.
- (ii) Interest on capital is to be allowed @ 12% p.a. and Interest on Drawings is to be charged @ 10% p.a.
- (iii) X to get monthly salary of ₹5,000 and Y to get salary of ₹22,500 per quarter.
- (iv) X is entitled to a commission of 5% on sales. Sales for the year were ₹3,50,000.
- (v) Profit to be shared in the ratio of their capitals up to ₹1,75,000 and balance equally.
Profit for the year ended 31st March, 2023, before allowing or charging interest was ₹4,61,000. The drawings of X and Y were ₹1,00,000 and ₹1,25,000 respectively.
Pass the necessary Journal entries relating to appropriation of profit. Prepare Profit & Loss Appropriation Account and the Partners’ Capital Accounts.
Solution
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About this solution
This is Chapter 1 Accounting for Partnership Firms – Fundamentals of TS Grewal Edition 2023-24.
Written by Vijay Adarsh, teaching commerce since 2003 to Class 11, Class 12, B.Com, CA, CS and CMA students.
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