TS Grewal Solutions 2026-27 [Class 12] – Partnership Fundamentals – Q 11 to 20

Solution for Q 11 to 20 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 loans by partner to firm, loans by firm to partner and profit and loss appropriation A/c.

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 11

Calulation of Interest on Loan
Partner	Amount	Date	Period (Months)	Interest Rate	Interest
Loan by Ankit to Firm	250000	01-Oct-25	6	6%	7500
Loan by Bhanu to Firm	250000	01-Oct-25	6	6%	7500
Loan by firm to Charu	100000	01-Nov-25	5	6%	2500

Journal Entries

S No	Date	Description	Dr	Cr
1	01-Oct-25	Bank A/c Dr..	500000
		To Loan by Ankit A/c		250000
		To Loan by Bhanu A/c		250000
		(Loan Taken by firm from partners)

2	01-Nov-25	Loan to Charu A/c Dr..	100000
		To Bank A/c		100000
		(Loan given to Charu by firm)

3	31-Mar-26	Interest on Loan by Ankit A/c Dr..	7500
		To Loan by Ankit A/c		7500
		(Being Interest Due)

4	31-Mar-26	Interest on Loan by Bhanu A/c Dr..	7500
		To Loan by Bhanu A/c		7500

5	31-Mar-26	Profit & Loss A/c Dr..	15000
		To Interest on Loan by Ankit A/c		7500
		To Interest on Loan by Bhanu A/c		7500
		(Interest transferred to Profit & Loss A/c)

6	31-Mar-26	Charu Capital A/c Dr..	2500
		To Interest on Loan to Charu		2500

7	31-Mar-26	Interest on Loan to Charu A/c Dr..	2500
		To Profit & Loss A/c		2500

Note : No entry for payment of interest will be made as payment made on 10-Apr-2025

But the question has asked for entries for the year ended 31-Mar-2025

Note : Question is silent on the interest rate in loan taken by firm from partners

So it will be assumed to be 6%

Question 12

Calulation of Interest on Loan
				Period
Case	Partner	Amount	Date	(Months)	Interest Rate	Interest
a)	Loan by Firm to Jetha	600000	01-Jul-25	9	No Interest
b)	Loan by Firm to Jetha	600000	01-Jul-25	9	10%	45000

Case a)
01-Jul-25	Loan to Jetha A/c Dr..	600000
	To Bank A/c		600000
	(Loan given to Jetha by firm)

	Interest
	No entry as no interest
	Due to absence of agreement

Case b)
01-Jul-25	Loan to Jetha A/c Dr..	600000
	To Bank A/c		600000
	(Loan given to Jetha by firm)

31-Mar-26	Jetha Capital A/c Dr..		45000
	To Interest on Loan to Jetha			45000
	(Interest Due)

31-Mar-26	Interest on Loan to Jetha A/c Dr..		45000
	To Profit & Loss A/c			45000
	(Interest transferred to P&L A/c)

Question 13

Calulation of Interest on Loan
Partner	Amount	Period	Period	Interest	Interest
			(Months)	Rate
Loan by Firm to Rahul	600000	February	1	6%	3000
Loan by Firm to Rahul	600000	March	1	6%	3000

Journal Entries
	No entry to be made for giving loan
	As question has asked for entries
	only for interest on loan

05-Mar-26	Rahul Capital A/c Dr..	3000
	To Interest on Loan to Rahul A/c		3000
	(February 2026 interest due)
05-Mar-26	Bank A/c Dr..	3000
	To Rahul Capital A/c		3000
	(February 2026 interest received by firm)
31-Mar-26	Rahul Capital A/c Dr..	3000
	To Interest on Loan to Rahul A/c		3000
	(March 2026 interest due)
31-Mar-26	Interest on Loan to Rahul A/c Dr..	6000
	To Profit and Loss A/c		6000
	(Interest on loan transferred to profit and loss A/c)
05-Apr-26	Bank A/c Dr..	3000
	To Rahul Capital A/c		3000
	(March 2026 interest received)

Question 14

Profit & Loss Appropriation A/c

Particulars		Amount	Particulars	Amount
To Interest on Capital			By Net profit	80000
Vinod @ 6%	6000
Mohan @ 6%	3600	9600

To Vinod Salary		36000
(3000*12)

To Profit Transferred :
Vinod Capital A/c	17200
Mohan Capital A/c	17200	34400

Total		80000	Total	80000

Working Note :

Since profit sharing ratio is not given so we have assumed it to be equal

Question 15

Profit & Loss Appropriation A/c

Particulars		Amount	Particulars	Amount
To Interest on Capital			By Net profit	640000
X @ 10%	50000		(Before Z Salary)
Y @ 10%	50000
Z @ 10%	25000	125000

To Z Salary		240000

To Profit Transferred :
X Current A/c	110000
Y Current A/c	110000
Z Current A/c	55000	275000

Total		640000	Total	640000

Note :
Profit transferred to profit and loss appropriation a/c is always
the profit before all appropriations and after all charges
Profit given in the question is profit after salary which is an appropriation
So first we will add the salary back to profits to arrive at profits before all appropriations
Net Profit as per question	400000
Add - Salary to Z	240000
Profit before all appropriations	640000

Question 16

Profit & Loss Appropriation A/c
Particulars		Amount	Particulars	Amount
To Interest on Capital			By Net profit	285000
X @ 5%	40000		(See note below)
Y @ 5%	30000	70000

To Y Salary		60000

To Profit Transferred :
X Capital A/c	93000
Y Capital A/c	62000	155000

Total		285000	Total	285000

Working Note :
Net profit (Given in question)	240000
(before intereest + after partner salary + mgr comm not yet accounted)
Add - Y's Salary	60000
Net profit before Y's Salary	300000	(Net Profit)
Less - Prov for Manager's Commission (5%)	15000	(300000*5/100)
Net Profit transferred to P&L Appr A/c	285000

Note : No adjustment in Net profit for interest in capital as net profit given in question is already before interest on capital
Note : Manager commission to be calculated on Net profit before all appropriations as that is the actual net profit
Note : Manager commission is a charge against profits so deducted while calculating the profit
transferred to profit and loss appropriation A/c

Question 17

Profits before any adjustment	228000
Charges against profits
Less - Interest on Loan from Atul @ 8%	24000	(300000*8/100)	firm will pay
Add - Interest on Loan to Mithun @ 8%	16000	(200000*8/100)	firm will receive

Profit transferred to P & L Appr A/c	220000
(Profit after all charges)

Alternatively, one can prepare profit and loss A/c for the above adjustment for more clarity

Profit & Loss Appropriation A/c
Particulars		Amount	Particulars		Amount
To Interest on Capital			By Net profit		220000
Atul @ 10%	50000
Mithun @ 10%	60000	110000	By Interest on Drawings
			Atul	5000
			Mithun	5000	10000
To Profit Transferred :
Atul Current A/c	72000
Mithun Current A/c	48000	120000

Total		230000	Total		230000

Note :

Share of profit transferred to current A/c as capital A/cs are maintained on fixed basis

Question 18

Profit & Loss Appropriation A/c
Particulars	Amount	Particulars		Amount
To Net Loss	100000
		By Interest on Drawings
		Reema @ 10% pa	3000
		Seema @ 10% pa	3000	6000

		To Net Loss Transferred :
		Reema	47000
		Seema	47000	94000

Total	100000	Total		94000

Note :

No Interest on Capital and salary provided as firm has incurred a loss

Question 19

Note :
As per the language of the question, interest on capital to be paid whethe the firm earns profit or incurs loss
This means that question is asking to treat interest on capital as a charge against profits

Profits before any adjustment	120000
Less - Interest on Capital to Bhanu @ 10%	80000	(800000*10/100)
Less - Interest on Capital to Pratap @ 10%	100000	(1000000*10/100)

Profit transferred to P & L Appr A/c	-60000	(Loss)

Profit & Loss Appropriation A/c
Particulars	Amount	Particulars		Amount
To Net Loss	60000
		By Interest on Drawings
		Bhanu (6 months)	3750
		Pratap (6 Months)	7500	11250

		To Net Loss Transferred :
		Bhanu Current A/c	24375
		Pratap Current A/c	24375	48750

Total	60000	Total		60000

Note :

Interest on drawings charged for 6 months assuming that the drawings are made at the middle of each month

Share of loss transferred to current A/c as capital A/cs are maintained on fixed basis

Note :
Interest on drawings - Bhanu	(5000015/1006/12)
Interest on drawings - Pratap	(10000015/1006/12)

Question 20

Interest on Capital A/c Dr..	40000
To Amit Current A/c		15000
To Sumit Current A/c		25000

Profit & Loss Appropriation A/c Dr..	40000
To Interest on Capital A/c		40000

Or
Combined single entry can be passed

Profit & Loss Appropriation A/c Dr..	40000
To Amit Current A/c		15000
To Sumit Current A/c		25000
**Current A/c used as fixed capital method is followed

Working Note
Interest on capital is always paid on opening capital
Description	Amit	Sumit	Total
Opening Capital	150000	250000
Interest rate	10%	10%
Interest	15000	25000	40000

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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