Question 6 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 6 Chapter 2 of +2-A

Question 6 Chapter 2 of +2-A

6. A and B are partners from 1st April 2018, without a Partnership Deed and they introduced capitals of ₹ 35,000 and ₹ 20,000 respectively. On 1st October 2018, A advanced loan of ₹ 8,000 to the firm without any agreement as to interest. The profit and Loss Account for the year ended 31st March 2019 shows a profit of ₹ 15,000 but the partners cannot agree on payment of interest and on the basis of division of profits.
You are required to divide the profits between them giving reasons for your method.

The solution of Question 6 Chapter 2 of +2-A

Profit and Loss Adjustment Account A/c
for the year ended 31st March 2019
Particulars
Amount Particulars
Amount
To Interest on Harshad’s Loan*1 240 By Profit and Loss A/c 15,000
8,000 × (6/100) × (6/12)      
To Profit and Loss Appropriation A/c (B. fig) 14,760    
  15,000     15,000

 

Profit and Loss Appropriation Account A/c
for the year ended 31st March 2019
Particulars
Amount Particulars
Amount
To Harshad’s Capital A/c 7,380 By Profit and Loss Adjustment Account A/c 14,760
14,760 × 1/2      
To Dhiman’s Capital A/c 7,380    
14,760 × 1/2      
  14,760     14,760

Working Note: –

*1:- Calculation of Total Interest on Loan
Interest on Loan = Value of Loan X Rate of Interest X Period
Value of Loan = 8,000
Rate of Interest = 6%
Period = from 01/10/18 to 31/03/19 i.e. 6 months
= 8,000 X 6/100 X 6/12
Total Interest on Investment = 240/

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

 

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2 Book 1 min - Question 6 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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