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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ankit, Bhanu and Charu are partners in a firm sharing profits and losses equally with capitals of ₹2,50,000 each. On 1st October, 2024, 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 1st November, 2024. It was agreed that Charu will be charged interest @ 6% p.a. Interest on the loans from partners was paid on 10th April, 2025. 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, 2025.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2025 Mar 31 | Interest on Loan A/c Dr. | 15,000 | ||
| To Ankit’s Loan A/c | 7,500 | |||
| To Bhanu’s Loan A/c | 7,500 | |||
| (Interest @ 6% p.a. for 6 months on loans of ₹2,50,000 each from Ankit and Bhanu) | ||||
| 2025 Mar 31 | Charu’s Loan A/c Dr. | 2,500 | ||
| To Interest on Loan to Partner A/c | 2,500 | |||
| (Interest @ 6% p.a. for 5 months on the ₹1,00,000 loan to Charu) |
Working Notes:
Interest on Ankit’s loan = ₹2,50,000 × 6/100 × 6/12 = ₹7,500.
Interest on Bhanu’s loan = ₹2,50,000 × 6/100 × 6/12 = ₹7,500.
Interest on Charu’s loan = ₹1,00,000 × 6/100 × 5/12 = ₹2,500.
Interest on partners’ loans remained unpaid on 31st March, 2025 (paid on 10th April, 2025), so it is credited to their loan accounts.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 1 Q.11 - Accounting for Partnership Firm Fundamentals", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Accounting for Partnership Firm – Fundamentals.
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