TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 2- Accounting for Partnership Firms- Fundamentals 2023-24

TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 2: We will provide all the important topics in detail which are covered in the chapter along with TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 2. You can easily download the free PDF for Class 12 Accountancy Vol1 Chapter 2 Solutions. 

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TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 1

Detailed Topics – TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 2 

The chapter Accounting for Partnership Firms- Fundamentals include these topics.  

At the start of the chapter, the students will review the Partnership Act:-  

1. According to Section 4 of the Indian Partnership Act, of 1932- A partnership is the relationship between two or more persons who have agreed to share the profits of a business carried on by any one of them acting for all.  
2. The students will learn about the features of partnership: Two or more persons, Agreement, Existence of business and the profit motive, Sharing of Profits, Business carried on by or any of them acting for all, and Relationship of Principal and Agents.  
3. Partnership Deed: the partners need to make some terms and conditions agreed upon by the partners. However, to avoid misunderstanding and disputes the Partnership Deed is made which I’d duly signed and registered under the Act.  
4. The partnership Deed contains the Name and Address of the firm and partners, duration, interest on capital, nature, and place of business, Capital contribution by each partner, drawing, and interest on drawings, profit sharing ratio, interest on the loan, partners salary, valuation of goodwill methods, Accounting period, rights and duties, the opening of bank account, rules to be followed, revaluation of assets and liabilities, auditing, date of commencement of Partnership.  
5. Benefits of partnership deed 
6. Distribution of Profits among Partners  
7. The journal entries regarding profit and loss appropriation account: transfer of the balance of profit and loss account, interest on capital, salary Commission payable, transfer of reserves, interest on drawings,  
8. Partners capital account  
9. Fluctuating capital accounts 

TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 2 Sample Questions  

In this section, the students will get TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 2 Sample Question. These will provide a glimpse of the questions.  

Q1. What share of profit would a sleeping partner who has contributed 75% of the total capital get in the absence of a deed?  

A. In the absence of the Partnership Deed, if nothing is fixed about the Profits and losses by the partners in the fees, then the Partners share profits and losses in an equal ratio. So, in this case, even if the sleeping partner has contributed 75% of the tit Capital of the firm, the provisions of the Partnership Deed imply distribution of Profits and losses will be shared by all the partners equally.  

Q2. State the provisions of the Partnership Act, 1932, in the absence of a Partnership Deed regarding  

• Interest in Partner’s Drawings  
• Interest in Advances other than capital 

 The provisions of the Partnership Act, of 1932, in the absence of a Partnership Deed regarding, are:-  

• Interest on Partner’s Drawing: In the absence of a Partnership Deed there is no provision to provide Interest on Drawings in Partnership Act, 1932.  
• Interest on Advances other than capital: Advance other than capital is treated as a loan to the firm. In the absence of a Partnership deed, according to the Partnership Act of 1932, the partners are entitled to 6% p.a. interest in loans forwarded by them to the firm.  

Q3. What is a Profit and Loss Appropriation Account?  

A. A partnership firm, like a proprietorship firm, prepares Trading Account, Profit and Loss Account, and Balance Sheet. Also, a partnership firm prepares a Profit and Loss Appropriation Account to which net profit or net loss as per the Profit and Loss Account is transferred to show its appropriation.  

We have included complete information regarding CBSE TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 2- Accounting for Partnership Firms- Fundamentals. If you have any questions feel free to ask in the comment section. 

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