Class 12th Account chapter 1 question 8 solution (ts grewal)

Question 8:

Bat and Ball are partners sharing the profits in the ratio of 2 : 3 with capitals of ₹1,20,000 and ₹60,000 respectively.

On 1st October, 2023, Bat and Ball gave loans of ₹2,40,000 and ₹1,20,000 respectively to the firm.

Bat had allowed the firm to use his property for business for a monthly rent of ₹5,000.

Loss for the year ended 31st March, 2024 before rent and interest amounted to ₹9,000.

Show distribution of profit/loss.

[Hint: Interest on Loan by partner and Rent are charges against profit.]

[Answer: Share of Loss: Bat – ₹31,920; Ball – ₹47,880]

SOLUTION :-