[ISC] Q. 48 Solution of Fundamentals of Partnership Firms TS Grewal Book ISC (2026-27)
Solution of Question number 48 of the Fundamentals of Partnership Accounts (Firm) chapter TS Grewal Book 2026-27 Edition ISC Board.
Ajay, Bijay, and Chandan are partners in a firm with capitals of ₹ 1,50,000; ₹ 1,20,000, and ₹ 90,000 respectively. Their Partnership Deed provides as follows:
(i) Interest on Capital to be allowed @ 10% p.a.
(ii) Interest on drawings to be charged @ 10% p.a.
(iii) Bijay and Chandan each are to be paid a salary @ ₹ 1,500 per month.
(iv) Ajay is to be paid a commission of 5% of the net profit.
(v) 10% of the net profit is to be transferred to general reserve.
(v) Divisible (remaining) profits are to be distributed as follows: 40% to Ajay; 30% to Bijay; 30% to Chandan.
Net Profit for the year ended 31st March 2024 was ₹ 1,50,000. Ajay withdrew ₹ 3,000 per month in the beginning of each month, Bijay withdrew ₹ 3,000 per month in the middle of each month and Chandan withdrew ₹ 3,000 per month at the end of each month.
Prepare Profit and Loss Appropriation Account for the year ended 31st March 2024.
Solution:-
