Class 12th Account chapter 1 question 11  solution (ts grewal)

Question 11 – Interest on Loan to and from Partners

Question:

Nirmal and Pawan are partners sharing profits in the ratio of 3:2.

The firm had given a loan to Pawan of ₹5,00,000 on 1st April, 2023. Interest was to be charged @ 10% p.a.

The firm took a loan of ₹2,00,000 from Nirmal on 1st December, 2023.

Before giving effect to the above, the firm incurred a loss of ₹10,000 for the year ended 31st March, 2024.

Determine the amount to be transferred to the Profit & Loss Appropriation Account.

SOLUTION :-