Get complete step-by-step solutions for T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1 - Chapter No. 2 – Accounting for Partnership Firms: Fundamentals. Study double-entry system details, practice timed problems, and verify answers directly.
Question 1 Chapter 2 of +2-A
Partnership Deed
1. In the absence of Partnership Deed, what are the rules related to :
(a) Salaries of partners,
(b) Interest on partners’ capitals
(c) Interest on partners’ loan
(d) Division of profit, and
(e) Interest on partners’ drawings
Accounting Treatment if Partnership Deed Absence
| Items |
Provision of Act - if the Absence of Partnership Deed absence |
|---|---|
| (a) Salaries of partners, | No Salary will be allowed to Partners |
| (b) Interest on partners’ capitals | No interest will be allowed to Partners on Capital |
| (c) Interest on partners’ loan | 6% p.a. Interest will be allowed on the amount given by partners in the form of Loans and Advances to the firm. |
| (d) Division of profit, and | Profits will be shared equally, it is irrespective the amount of capital contributed by partners |
| (e) Interest on partners’ drawings | No Interest will be charged on the Drawings of Partners. |
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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms[/caption]
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.