[ISC] Q. 80 Solution of Fundamentals of Partnership Firms TS Grewal Book ISC (2026-27)

Solution of Question number 80 the Fundamentals of Partnership Accounts (Firm) chapter TS Grewal Book 2026-27 Edition ISC Board.

Ajit, Harish, and Ganesh were partners in a firm. On 1st April 2022, their capitals stood at ₹ 50,000; ₹ 25,000, and ₹ 25,000 respectively.

As per the provisions of the Partnership Deed:

(i) Ganesh was entitled for a salary of ₹ 1,500 per month.

(ii) Partners were entitled to interest on capital @ 5% p.a.

(iii) Profits were to be shared in the ratio of capital.

Net profit for the year ended 31st March 2023 of ₹ 45,000 was divided equally without providing for the above appropriations. Pass the adjustment entry to rectify the above error.

Solution