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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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Question 25 Chapter 7 of +2-A
25. P, Q and R were partners in firm sharing profits and losses in the ratio of 5 : 3: 2. They agreed to dissolve their partnership firm on 31st March 2018. P was deputed to realise the assets and pay the liabilities. He as paid 1,000 as commission for his services. The financial position of the firm was:
| Liabilities | Amount | Assets | Amount | ||
| Creditors | 10,000 | Stock | 5,500 | ||
| Bills Payable | 3,700 | Investments | 15,000 | ||
| Investments Fluctuation Reserve | 4,500 | Debtors | 7,100 | ||
| Less: Provision for Doubtful Debtors | 450 | 6,650 | |||
| Capital A/cs: | Cash | 5,600 | |||
| P | 37,550 | R's Capital A/c | 8,000 | ||
| Q | 15,000 | 52,550 | Plant and Machinery | 30,000 | |
| 70,750 | 70,750 |
P took over Investments for 12,500. Stock and Debtors realized 11,500. Plant and Machinery were sold to Q for 22,500 for cash. Unrecorded assets realized 1,500. Realization expenses paid amounted to 900. Prepare necessary Ledger Accounts to close the books of the firm.
Realization Account
| Particular |
Amount | Particular | Amount | ||
|---|---|---|---|---|---|
| Plant and Machinery | 30,000 | Creditors | 10,000 | ||
| Stock | 5,500 | Bills Payable | 3,700 | ||
| Investments | 15,000 | Investments Fluctuation Reserve | 4,500 | ||
| Debtors | 7,100 | Provision for Doubtful Debts | 450 | ||
| Cash A/c: | P’s Capital A/c Investments | 12,500 | |||
| Creditors | 10,000 | Cash A/c: | |||
| Bills Payable | 3,700 | Stock and Debtors | 11,500 | ||
| Expenses | 900 | 14,600 | Plant and Machinery | 22,500 | |
| P’s Capital A/c | 1,000 | Unrecorded Assets | 1,500 | 35,500 | |
| Realization Loss | |||||
| P’s Capital A/c | 3,275 | ||||
| Q’s Capital A/c | 1,965 | ||||
| R’s Capital A/c | 1,310 | 6,550 | |||
| 73,200 | 73,200 | ||||
Partners’ Capital Account
| Part. | P | Q | R |
Part. |
P | Q | R |
|---|---|---|---|---|---|---|---|
| To Balance B/d | 8,000 | By Balance B/d | 37,550 | 15,000 | - | ||
| To Realization loss A/c | 3,275 | 1,965 | 1,310 | By Realization A/c | 1,000 | - | - |
| To Realization A/c | |||||||
| To Cash A/c | 22,775 | 13,035 | To Cash A/c | 9,310 | |||
| 38,500 | 15,000 | 9,310 | 38,500 | 13,000 | 9,310 |
Bank Account
| Particular |
Amount | Particular | Amount | ||
|---|---|---|---|---|---|
| Balance b/d | 5,600 | Realization A/c | 14,600 | ||
| Realization A/c | 35,500 | P’s Capital A/c | 22,775 | ||
| R’s Capital A/c | 9,310 | Q’s Capital A/c | 13,035 | ||
| 50,410 | 50,410 | ||||
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Q.No.25 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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