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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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 the interest payable by the firm to the partners, assuming the firm closes its books every year on 31st March.
As the Partnership Deed is silent on interest on a partner’s loan, interest is allowed @ 6% p.a. under the Indian Partnership Act, 1932. The loan was advanced on 1st October, 2024, so interest is charged for 6 months (1st October, 2024 to 31st March, 2025).
Loan advanced (in the 3 : 2 ratio):
Interest on loan @ 6% p.a. for 6 months:
Total interest payable by the firm = ₹540 + ₹360 = ₹900.
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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.6 - 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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