Solution of Q 4 Fundamentals of Partnership Firm TS Grewal 2023-24 [CBSE]
Step-by-step solution of Question 4, Chapter 1 Accounting for Partnership Firms – Fundamentals, TS Grewal Class 12 Accountancy 2023-24 for the CBSE Board.
Question 4
Barun, Tarun and Shivam are partners in a firm and do not have a Partnership Deed. Barun introduced further capital of ₹5,00,000 on 1st October, 2022, whereas Shivam took a loan of ₹50,000 from the firm on 1st October, 2022. Disputes have arisen among them on the following:
- Barun demands interest @ 10% p.a. on ₹5,00,000 being his extra capital.
- Tarun desires that his son Deep should be admitted as a partner and he will give him half of his share. Barun and Shivam do not agree.
- Barun and Tarun are of the view that Shivam should be charged interest on loan from the firm at the lending rate of the banks, which is 12% p.a.
- Tarun has withdrawn ₹50,000 from the firm for his personal use. Barun and Shivam are of the view that Tarun should be charged interest @ 10% p.a.
Give solution to each issue of dispute.
Solution
All questions of Chapter 1
Orange = this question · Grey = already opened.
About this solution
This question has no Partnership Deed, so every dispute is settled using the provisions of the Indian Partnership Act, 1932. The solution explains, point by point, why Barun gets no interest on his extra capital, why Deep cannot be admitted as a partner when Barun and Shivam do not agree, why no interest is charged on Shivam's loan when no rate was agreed, and why no interest is charged on Tarun's drawings.
Written by Vijay Adarsh, teaching commerce since 2003 to Class 11, Class 12, B.Com, CA, CS and CMA students. Every solution follows the format and working notes expected in the CBSE board exam.
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