TS Grewal Solutions 2026-27 [Class 12] – Partnership Fundamentals – Q 51 to 60

Solution for Q 51 to 60 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 profit and loss appropriation account and partner capital account, when appropriations are more than available profits, past adjustments for incorrect appropriations

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 51

Profit & Loss Appropriation A/c
Particulars		Amount	Particulars	Amount
To Interest on Capital			By Net profit as per P&L A/c	500000
A	30000
B	18000	48000

To Commission to partners
A	60000
B	15810	75810

To B's Salary		60000

To Profit Transferred :
A Capital A/c	237143
B Capital A/c	79048	316190

Total		500000	Total	500000

Partners Capital A/c

Particulars	A	B	Particulars	A	B
To Drawings	80000	60000	By Balance B/d	500000	300000
			By Interest on Capital	30000	18000
			By Partners Salary		60000
			By P & L Apppr A/c	237143	79048
			By Partner Commission	60000	15810
To Balance C/d	747143	412857
Total	827143	472857	Total	827143	472857

Working Note :
Calculation of B's Commission
Net Profit	500000
Less - Interest on Capital	48000
Less - A's Commission	60000
Less - B's Salary	60000
Balance	332000

B's Commission @ 5% after charging such commission	15810	332000*(5/105)
(332000 X 5 / (100+5))

Question 52

Profit & Loss Appropriation A/c
Particulars		Amount	Particulars	Amount
To Interest on Capital			By Net profit as per P&L A/c	500000
Amit	5000
Binita	10000
Charu	15000	30000

To Amit Salary		120000

To Binita Commission		23810

To General Reserve		50000

To Profit Transferred :
A Cap A/c	92063
B Cap A/c	92063
C Cap A/c	92063	276190

Total		500000	Total	500000

Partners Capital A/c

Particulars	Amit	Binita	Charu	Particulars	Amit	Binita	Charu
				By Balance B/d	100000	200000	300000
				By Interest on Capital	5000	10000	15000
				By Partner Salary	120000
				By Partner Commission		23810
				By Profit & Loss Appr A/c	92063	92063	92063
To Balance C/d	317063	325873	407063
Total	317063	325873	407063	Total	317063	325873	407063

Working Note :
Calculation of Binita Commission
500000X5/105	=	23810

Question 53

Profit & Loss Appropriation A/c
Particulars		Amount	Particulars		Amount
			By Net profit		684600
To Interest on Capital			(702600-18000)
Sajal	25000		(After Interest on Loan)
Kajal	20000	45000	By Interest on Drawings
			Sajal	3000
			Kajal	2400	5400

To General Reserve		64500

To Profit Transferred :
Sajal Capital A/c	387000
Kajal Capital A/c	193500	580500

Total		690000	Total		690000

Partners Capital A/c

Particulars	Sajal	Kajal	Particulars	Sajal	Kajal
To Drawings	100000	80000	By Balance B/d	500000	400000
To Interest on Drawings	3000	2400	By Interest on Capital	25000	20000
			By P & L Apppr A/c	387000	193500

To Balance C/d	809000	531100
Total	912000	613500	Total	912000	613500

Working Note :
Interest on Loan by Kajal
Loan Amount	300000
Interest @ 6%	18000

Amount Transfer to Reserve
Net Profit	702600
Less - Interest on Loan by Kajal	18000
Less - Interest on Capital	45000
Add - Interest on Drawings	5400

Divisible Profits	645000	(profits distributable after approproations)
Transfer to Reserves @ 10%	64500

Note:

Interest on loan is not transferred to capital A/c but it is transferred to partner loan A/c

In this question, in the absence of agreement interest on Loan will be @ 6%

Question 54

Profit & Loss Appropriation A/c
Particulars		Amount	Particulars	Amount
To Interest on Capital			By Net profit as per P&L A/c	400000
Ali	12500
Bahadur	10000	22500

To Bahadur Salary		30000

To General Reserve		34750

To Profit Transferred :
Ali Current A/c	218925
Bahadur Current A/c	93825	312750

Total		400000	Total	400000

Partners Current A/c

Particulars	Ali	Bahadur	Particulars	Ali	Bahadur
To Drawings	35000	25000	By Interest on Capital	12500	10000
			By Partner Salary	0	30000
			By P & L Apppr A/c	218925	93825

To Balance C/d	196425	108825
Total	231425	133825	Total	231425	133825

Partners Capital A/c

Particulars	Ali	Bahadur	Particulars	Ali	Bahadur
			By Balance B/d	250000	200000

To Balance C/d	250000	200000
Total	250000	200000	Total	250000	200000

Working Note :
Calculation of Divisible Profits
Net Profits	400000
Less - Interest on Capital	22500
Less - Bahadur Salary	30000

Divisible Profits	347500
General Reserve @ 10%	34750

Question 55

Distribution of profits
Description	Neeraj	Surya
Capital	400000	200000
Interest on Capital @ 12%	48000
Salary (6000*12)		72000

Total	48000	72000
Ratio	2	3

Share of each partner	20000	30000

Working Note :
Total Appropriations of both the partners	120000	(48000+72000)
Profits for the year	50000
In this question the appropriations are more than the available profits
So distribution will be in the ratio of appropriations

Question 56

Note:

In this question the appropriations are more than the available profits

So the profits are divided in the ratio of appropriations

Profit & Loss Appropriation A/c
Particulars		Amount	Particulars		Amount
			By Net profit		155500
To Profit Transferred :			By Interest on Drawings
Kabir	40000		(6 months)
Zoravar	32000		Kabir	1500
Parul	88000	160000	Zoravar	1500
			Parul	1500	4500

Total		160000	Total		160000

Note : Calculation of total Apppropriations
Description	Kabir	Zoravar	Parul	Total
Interest on Capital	26000	16000	10000	52000
Partner Salary	24000	24000		48000
Partner Commission			100000	100000
Total	50000	40000	110000	200000
Ratio	50	40	110
	5	4	11	20

Calculation of profits available for appropriation
Net Profit	155500
Add - Interest on Drawings	4500
Total	160000

Note :

Note that the total appropriation > profits available so profits will be distributed in the ratio of appropriation

The divisible profits (Net Profit + Int on Drawings - Appropriations) is negative so no amount transferred to reserve

Question 57

Note : Total Profits for last 3 years
Year 1	140000
Year 2	84000
Year 3	106000
Total Profits	330000

Note: Distribution of Profits
Description	Reya	Mona	Nisha
Incorrect Distribution of Profits (Equally)	110000	110000	110000
Correct Distribution of Profits (3:2:1)	165000	110000	55000

Particulars	Reya Cap A/c		Mona Cap A/c		Nisha Cap A/c		Firm (P&L Appr A/c)
Particulars	Dr	Cr	Dr	Cr	Dr	Cr	Dr	Cr
Correct Distribution		165000		110000		55000	330000
Incorrect Distribution	110000		110000		110000			330000

Total	110000	165000	110000	110000	110000	55000	330000	330000
	55000 Cr		0		55000 Dr		0

Journal entry
Nisha Capital A/c Dr..	55000
To Reya Capital A/c		55000

Question 58

Description		Atul		Gita		Firm (P&L Appr)
Description		Dr	Cr	Dr	Cr	Dr	Cr
Interest on Capital omittted			24000		12000	36000
Profit adjustment		21600		14400			36000

	Balance	21600	24000	14400	12000	36000	36000
		2400		2400		0
		Cr		Dr

Journal Entry
Gita Current A/c	2400
To Atul Current A/c		2400

Question 59

Note :
Description	Ram	Mohan	Sohan	Total
Capital	120000	90000	60000
Interest @ 6%	7200	5400	3600	16200
Interest @ 5%	6000	4500	3000	13500

Description	Ram		Mohan		Sohan		Firm (P&L Appr)
Description	Dr	Cr	Dr	Cr	Dr	Cr	Dr	Cr
InCorrect Interest on Capital	7200		5400		3600			16200
Should be distributed as :
Correct Interest on Capital		6000		4500		3000	13500
Balance Profits (In profit ratio)		900		900		900	2700

Total	7200	6900	5400	5400	3600	3900	16200	16200
	300 Dr		0		300 Cr		0

Journal Entry :
Ram's Capital A/c Dr..	300
To Sohan's Capital A/c		300

Note :

Total Rs 16200 were distributed incorrectly. Out of that Rs 13500 distributed correctly as interest on capital

The balance (Rs 16200 - Rs 13500) = Rs 2700 to be distributed in profit sharing ratio

Question 60

Interest on Capital
Description	Ram	Shyam	Mohan	Total
Capital	300000	100000	200000
Interest @ 9%	27000	9000	18000	54000
Interest @ 10%	30000	10000	20000	60000

Description		Ram		Shyam		Mohan		Firm
Description		Dr	Cr	Dr	Cr	Dr	Cr	Dr	Cr
InCorrect Interest on Capital		27000		9000		18000			54000
Should be distributed as :
Correct Interest on Capital			30000		10000		20000	60000
Excess Profits Distributed		2400		1200		2400			6000
(In profit ratio)
	Total	29400	30000	10200	10000	20400	20000	60000	60000
		600 Cr		200 Dr		400 Dr		0

Journal Entry :
Shyam's Current A/c Dr..	200
Mohan's Current A/c Dr..	400
To Ram's Current A/c		600

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

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