[ISC] Q. 65 Solution of Fundamentals of Partnership Firms TS Grewal Book ISC (2026-27)

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Solution of Question number 65 of the Fundamentals of Partnership Accounts (Firm) chapter TS Grewal Book 2026-27 Edition ISC Board.

Tina and Meena started their partnership on 1st October, 2025 with fixed capitals of ₹ 4,50,000 and 3,75,000 respectively. On 1st January, 2026, they decided as follows:
Total fixed capital of firm shall be ₹ 10,00,000 to be in their profit-sharing ratio. Accordingly, the partners introduced or withdrew capital. Tina had given loan to the firm of ₹ 2,00,000 along with her capital.

The Partnership Deed had the following clauses:

(a) Interest on Capital to be allowed @ 5% p.a.
(b) Interest on Loan by partners to be allowed @ 10% p.a.
(c) 10% of the Net Profit to be transferred to General Reserve.
(d) Profit-sharing ratio of partners to be 4: 1.

Net Profit of the firm for the period ended 31st March, 2026 was ₹ 1,60,000.

You are required to pass the Journal entries for the year ended 31st March, 2026.

Solution:-

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