Question 7 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 7 Chapter 2 of +2-A

Question 7 Chapter 2 of +2-A

Interest on Partner’s Loan to the firm

7. A and B 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 2017. The Partnership Deed is silent on interest on loans from partners. Compute interest payable by the firm to the partners, assuming the firm closes its books every year on 31st March.

The solution of Question 7 Chapter 2 of +2-A

Calculation of Value of Loan taken form Mr A and Mr B
Distribute the total Value of Loan among the Partners’ Profit sharing Share i.e. 3: 2
Value of Loan = 30,000
= 30,000 X 3/5
A’s Loan = 18,000/-
= 30,000 X 2/5
B’s Loan = 12,000/-
Calculation of Total Interest on A’s Loan
Interest on Loan from A = Value of Loan X Rate of Interest X Period
Value of Loan = 18,000
Rate of Interest = 6%
Period = from 01/10/18 to 31/03/19 i.e. 6 months
(Date of Loan Taken to the end of Financial year.)
= 18,000 X 6/100 X 6/12
Total Interest on A’s Loan = 540/-
Calculation of Total Interest on B’s Loan
Interest on Loan from B = Value of Loan X Rate of Interest X Period
Value of Loan = 12,000
Rate of Interest = 6%
Period = from 01/10/18 to 31/03/19 i.e. 6 months
(Date of Loan Taken to the end of Financial year.)
= 12,000 X 6/100 X 6/12
Total Interest on B’s Loan = 360/-

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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 7 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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