Q.No.15 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 15 Chapter 7 of +2-A

15. What Journal entries would be passed for discharge of following unrecorded liabilities on the dissolution of a firm of partners A and B:
a There was a contingent liability in respect of bills discounted but not matured of 18,500. An acceptor of one bill of 2,500 became insolvent and fifty paise in a rupee was recovered. The liability of the firm on account of this bill discounted and dishonored has not so far been recorded.
b There was a contingent liability in respect of a claim for damages for 75,000, such liability was settled for 50,000 and paid by the partner A.
c Firm will have to pay 10,000 as compensation to an injured employee, which was a contingent liability not accepted by the firm. d 5,000 for damages claimed by a customer has been disputed by the firm. It was settled at 70% by a compromise between the customer and the firm.

 

The solution of Question 15 Chapter 7 of +2-A: -

 

Date	Particulars		L.F.	Debit	Credit
a	Bank A/c	Dr.		1,250
	To Realization A/c				1,250
	(Being Amount received)
	Realization A/c	Dr.		2,500
	To Bank A/c				2,500
	(Being Liability discharged )
b	Realization A/c	Dr.		50,000
	To A’s Capital A/c				50,000
	(Being Liability paid by a partner)
c	Realization A/c	Dr.		10,000
	To Bank A/c				10,000
	( Being Liability discharged)
d	Realization A/c	Dr.		3,500
	To Bank A/c				3,500
	(Being Liability discharged)

 

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication