Solution for Q 1 to 10 of Chapter 1 of T S Grewal Class 12 Accountancy 2026-27 are given below. These partnership fundamentals class 12 T S Grewal Solutions are based on topics of partnership deed, provisions applicable in the absence of a partnership deed, loans by partner to firm and loans by firm to partner.
Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps. These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.
Question 1
| a) |
not allowed |
| b) |
not allowed |
| c) |
allowed @ 6% |
| d) |
equally |
| e) |
not charged |
| f) |
not charged |
Question 2
| a) |
not allowed |
| b) |
not allowed |
| c) |
not charged |
| d) |
Profits to be distributed equally and not in the ratio of capital |
Question 3
| |
We have to apply the provision applicable in the absence of partnership deed |
| a) |
Interest on capital is not allowed even if it is extra |
| b) |
New partner can be admitted only after all the partners agree |
| |
Here Barun and tarun do not agree so Deep cannot be admitted |
| c) |
No interest in chagred on loan given by firm to partner |
| d) |
No interest in chagred on drawings by partners |
Question 4
| As given in the question, there is no partnership agreement |
| We have to apply the provision applicable in the absence of partnership deed |
| Harshad Claims |
|
| (i) No interest will be paid on capital |
| Harshad will get interest on loan given by him to the firm @ 6% pa |
| Calculation of Interest on Harshad loan |
| Amount of loan |
100000 |
|
|
| Interest Rate |
6% |
per annum |
| Date of Loan |
01-Oct-25 |
|
| Period for interest (months) |
6 |
( Oct-2025 to Mar-2026) |
| Interest Amount |
3000 |
(100000X6%X6/12) |
| (ii) Harshad claim to distribute profits in the ratio of capital is not corrrect. |
| The profits will be distributed equally |
| |
|
|
|
| Dhiman Claims |
|
|
| (i) Profits to be distributed equally. This is correct |
| (ii) No remunaration will be paid to Dhiman |
| (iii) No interest will be paid on capital. This is incorrect |
| Interest on loan will be allowd @ 6%. This is correct |
| |
|
|
|
| Now we move to preparation of profit and loss appropriation account |
| Working Note |
|
|
| Calculation of profit transferred to P & L Appropriation A/c |
| Net profit before interest on loan (given) |
180000 |
| Less - Interest to Harshad on Loan (Charge against profits) |
3000 |
| Balance transferred to P & L appropriation A/c |
177000 |
| |
|
|
|
| Profit & Loss Appropriation A/c |
| Particulars |
|
|
Amount |
Particulars |
|
|
Amount |
| To Profit Transferred : |
|
|
By Net profit |
|
177000 |
| Harshad Capital A/c |
88500 |
|
(After Interest on Loan |
|
|
| Dhiman Capital A/c |
88500 |
177000 |
for 6 months) |
|
|
| |
|
|
|
|
|
|
|
| Total |
|
|
177000 |
Total |
|
|
177000 |
Question 5
| Total Loan |
30000 |
|
|
|
|
| Loan given in the profit sharing ratio |
|
| Loan by Sita |
3/5*30000 |
18000 |
|
|
|
| Loan by Geeta |
2/5*30000 |
12000 |
|
|
|
| |
|
|
|
|
|
| Description |
Profit ratio |
Loan Amount |
Months |
Interest @ 6% |
| Loan by Sita |
3 |
18000 |
6 |
540 |
(18000*6/100*6/12) |
| Loan by Geeta |
2 |
12000 |
6 |
360 |
(12000*6/100*6/12) |
| |
|
|
|
|
|
| Note : Loan is given on 01-Oct-2025 so interest payable for 6 months only |
| In the absence of provisions in the partnership deed, interest on loan by partner to firm allowed @ 6% pa |
Question 6
| Calculation of interest in loan given by Nimrat to firm |
| Amount of Loan |
200000 |
|
| Date of loan |
01-Oct-25 |
| Date of repayment of loan |
01-Feb-26 |
| Duration of Loan |
4 |
months |
| Interest Rate |
6% |
pa |
| Interest in Loan |
4000 |
|
| Note : |
|
|
| Since no partnership deed, so Interest on loan payable @ 6% pa |
Question 7
| (A) Calculation of Interest on Loan |
| Partner |
Amount |
Date |
Period |
Interest @ 6% |
| |
|
|
(Months) |
|
| Bat |
240000 |
01-Oct-25 |
6 |
7200 |
| Ball |
120000 |
01-Oct-25 |
6 |
3600 |
| |
|
|
Total |
10800 |
| (B) Calculation of profit transferred to P&L Appr A/c |
| Loss Before Interest and rent |
-9000 |
| Less - Charge against profits |
| - Interest on Loan |
-10800 |
| - Rent to Bat (5000*12) |
-60000 |
| Total distributable Loss (Transfer to P & L Appropriation A/c) |
-79800 |
| (C) Calculation of share of loss for each partner |
| Share of Bat (Loss) |
-31920 |
| Share of Ball (Loss) |
-47880 |
| Working Note : |
| 1) Interest on loan by partner to firm is a charge against profits |
| 2) Rent paid to partner by firm is a charge against profits |
| 3) For determining profit or loss transferred to P&L Appr A/c, the charge against profits to be deducted |
Question 8
| Calculation of Interest on Loan by Sunil |
| Amount |
Date |
Status |
Period (Months) |
Interest @ 10% |
| 300000 |
April 24 to Feb 25 |
Interest Paid |
11 |
27500 |
(300000*10/100*11/12) |
| 300000 |
01-Mar-25 |
O/s Interest |
1 |
2500 |
(300000*10/100*1/12) |
| Total Interest |
|
|
30000 |
|
| Journal Entries for Interest on Loan |
| 01-Mar-26 |
Interest on Loan by Sunil A/c Dr.. |
27500 |
|
| |
To Loan by Sunil A/c |
27500 |
| |
(Being Interest Due on partner loan) |
| 01-Mar-26 |
Loan by Sunil A/c Dr.. |
27500 |
|
| |
To Bank A/c |
27500 |
| |
(Being interest paid to partner through check) |
| 31-Mar-26 |
Interest on Loan by Sunil A/c Dr.. |
2500 |
|
| |
To Loan by Sunil A/c |
2500 |
| |
(Being Interest Due on partner loan) |
| 31-Mar-26 |
Profit and Loss A/c Dr.. |
30000 |
|
| |
To Interest on Loan by Sunil A/c |
30000 |
| |
(Being interest on partner loan transferred to Profit and Loss A/c) |
| |
|
|
|
| |
Note: |
|
|
| |
No entry to be made for giving loan as question has asked for entries only for interest on loan |
Question 9
| Calculation of Interest on Loan |
|
| Partner |
Amount |
Date |
Period (Months) |
Interest |
|
| Loan by Akhil to Firm |
100000 |
01-Jan-26 |
3 |
1500 |
(100000*6/100*3/12) |
| Loan by Firm to Bimal |
100000 |
01-Jan-26 |
3 |
0 |
(No Interest Charged) |
| Calculation of profits transferred to Profit and Loss Appr A/c |
| Profit before above adjustments |
103000 |
|
| Less - Charge against profits |
| - Interest on Loan by Akhil |
1500 |
|
| - Rent to Akhil |
60000 |
(5000*12) |
| Total distributable Profit (Transfer to P & L Appropriation A/c) |
41500 |
|
| Share of Akhil (3/5*41500) |
24900 |
|
| Share of Bimal (2/5*41500) |
16600 |
|
Question 10
| Calulation of Interest on Loan |
|
| |
|
|
Period |
Interest |
|
| Partner |
Amount |
Date |
(Months) |
Rate |
Interest |
| Loan by Firm to Pawan |
500000 |
01-Apr-25 |
12 |
10% |
50000 |
| Loan by Nirmal to Firm |
200000 |
01-Dec-25 |
4 |
6% |
4000 |
| Excerpts from Profit and Loss A/c |
| Particulars |
Amount |
Particulars |
Amount |
| Net Loss (Before Adjustments) |
10000 |
By Interest on loan to Pawan |
50000 |
| To Interest on Loan from Nirmal |
4000 |
|
|
| Net Loss transferred to P & L Appr A/c |
36000 |
|
|
| Total |
50000 |
Total |
50000 |
| Or Can also solve directly as below |
| |
|
| Loss before above adjustments |
-10000 |
| Add - Interest on Loan to Pawan |
50000 |
| Less - Interest on loan from Nirmal |
4000 |
| Total distributable profit (Transfer to P & L Appropriation A/c) |
36000 |
Q 1-10 | Q 11-20 | Q 21-30 | Q 31-40 | Q 41-50 | Q 51-60 | Q 61-70 | Q 71-80 | Q 81-92
T S Grewal Solutions – Partnership Firms Fundamentals – All Questions
T S Grewal Solutions Class 12 2026-27 – All Chapters
