[ISC] Q. 81 Solution of Fundamentals of Partnership Firms TS Grewal Book ISC (2026-27)

Solution of Question number 81 the Fundamentals of Partnership Accounts (Firm) chapter TS Grewal Book 2026-27 Edition ISC Board.

Shiv and Shankar were partners in a firm sharing profits in 3 : 2 ratio. Their fixed capitals were ₹ 1,70,000 and ₹ 2,10,000 respectively. The Partnership Deed provides for the following:

(i) Interest on Capital @ 12% p.a.

(ii) Interest on Drawings @ 18% p.a.

Shiv withdrew ₹ 12,000 on 30th June 2023 and Shankar withdrew ₹ 18,000 on 30th September 2023. Profit for the year ended 31st March, 2024 was ₹ 97,000, which was distributed among the partners without providing for the above adjustments. Pass adjustment entry.

Solution