CLASS XII T.S. GREWAL'S ACCOUNTING FOR NOT-FOR-PROFIT ORGANIZATIONS AND PARTNERSHIP FIRM. SESSION: 2022-23 CHAPTER-2 QUES. 5 SOLUTION

Ques.5 

SOLUTION :-

                   In the absence of Partnership Deed interest on partner's loan to firm is allowed @ 6% p.a. and profits/losses are shared equally by the partners.

So, Interest on A's loan =

      8000 × 6/100 × 6/12 (for six months) 

                      =    rs.240 

Distributable Profit = 15000 – 240 

                                   =  rs.14,760

Now, A's share of Profit = 14,760 × 1/2 

                                      =   rs.7,380

      B's share of Profit = 14,760 × 1/2 

                                      =   rs.7,380

                                                

Hence,  A and B each gets rs.7,380 as profit and A gets rs. 240 as interest on loan.

Here is the list of all Solutions:

Full notes of Accounting For Partnership Firms.

Ques.6