CLASS XII T.S. GREWAL'S ACCOUNTING FOR NOT-FOR-PROFIT ORGANIZATIONS AND PARTNERSHIP FIRM. SESSION: 2022-23 CHAPTER-2 QUES. 6 SOLUTION:

Ques.6:

Harshad and Dhiman are in partnership since 1st April, 2021. No Partnership agreement was made. They contributed ₹ 4,00,000 and ₹ 1,00,000 respectively as capitals. In addition, Harshad had given loan of ₹ 1,00,000 to the firm on 1st October, 2021. Due to long illness, Harshad could not participate in business activities from 1st August, 2021 to 30th September, 2021. Profit for the year ended 31st March, 2022 was ₹ 1,80,000. Dispute has arisen between Harshad and Dhiman. 

 Harshad Claims:

i) He should be given interest @ 10% per annum on capital and loan.

ii) Profit should be distributed in the ratio of capital.

Dhiman Claims:-

i) Profits should be distributed equally;

ii) He should be allowed ₹ 2,000 p.m. as remuneration for the period he managed the business in the absence of Harshad;

iii) Interest on Capital and loan should be allowed @ 6% p.a.

You are required to settle the dispute between Harshad and Dhiman. Also prepare Profit and Loss Appropriation Account.

SOLUTION: 

Harshad Claim 

i) In the absence of Partnership Deed, provisions of Indian Partnership Act 1932 will apply so, No interest on capital is provided and interest on loan of partner is given @ 6% p.a.

ii) In the absence of Partnership Deed, provisions of Indian Partnership Act 1932 will apply so, profit should be distributed equally.

Dhiman Claims

i) His claim is right that profits should be shared equally.

ii) In the absence of Partnership Deed, No remuneration     will be allowed to Dhiman.

iii) In the absence of Partnership Deed, Interest on capital will not be allowed but interest on loan should be allowed @6%p.a. 

here, is the list of all Solutions

notes of Accounting for Partnership Firms

Ques.5 Solution