[ISC] Q. 10 Solution of Fundamentals of Partnership Firms TS Grewal Book ISC (2026-27)

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Solution of Question number 10 of the Fundamentals of Partnership Accounts (Firm) chapter TS Grewal Book 2026-27 Edition ISC Board.

Sahaj and Nimish entered into partnership on 1st April, 2025 without a partnership deed. They introduced capital of 5,00,000 and 3,00,000 respectively. On 1st November, 2025, Sahaj advanced loan of₹ 2,00,000 to the firm without an agreement as to interest. Profit & Loss Account for the year ended 31st March, 2026 showed profit of ₹ 4,30,000 but the partners could not agree on the rate of interest on loan to be charged and the basis of division of profits.

You are required to:

(i) Pass a Journal entry for the distribution of profit between the partners.

(ii) Prepare Partners’ Capital Accounts and Loan Account of Sahaj.

Solution:-

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