Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Advertisement
Advertisement
Advertisement
Advertisement
Question 29 Chapter 7 of +2-A
29. A and B are partners in a firm sharing profits and losses in the ratio of 2: 1. On 31st March 2018, their Balance Sheet was:
| Liabilities | Amount | Assets | Amount | |
| Bank Overdraft | 30,000 | Cash in Hand | 6,000 | |
| General Reserve | 56,000 | Bank Balance | 10,000 | |
| Investments Fluctuation Reserve | 20,000 | Sundry Debtors | 26,000 | |
| A's Loan | 34,000 | Less: Provision for Doubtful Debtors | 2,000 | 24,000 |
| Capital A/c: | Investments | 40,000 | ||
| A | 50,000 | Stock | 10,000 | |
| Furniture | 10,000 | |||
| Building | 60,000 | |||
| B's Capital | 30,000 | |||
| 1,90,000 | 1,90,000 |
On that date, the partners decide to dissolve the firm. A took over Investments at an agreed valuation of 35,000. Other assets were realised as follows: Sundry Debtors: Full amount. The firm could realise Stock at 15% less and Furniture at 20% less than the book value. The building was sold at 1,00,000. Compensation to employees paid by the firm amounted to 10,000. This liability was not provided for in the above Balance Sheet. You are required to close the books of the firm by preparing Realisation Account, Partners' Capital Accounts and Bank Account
Realization Account
| Particular |
Amount | Particular | Amount | ||
|---|---|---|---|---|---|
| Sundry Debtors | 26,000 | Provision for Doubtful Debts | 2,000 | ||
| Investments | 40,000 | Bank Overdraft | 30,000 | ||
| Stock | 10,000 | Investments Fluctuation Reserve | 20,000 | ||
| Furniture | 10,000 | A’s Capital A/c Investments | 35,000 | ||
| Building | 60,000 | ||||
| Bank A/c | |||||
| Compensation to Employees | 10,000 | Bank | |||
| Bank Overdraft | 30,000 | 40,000 | Sundry Debtors | 26,000 | |
| Stock | 8,500 | ||||
| Furniture | 8,000 | ||||
| Profit transferred to | Building | 1,00,000 | 1,42,500 | ||
| A’s Capital A/c | 29,000 | ||||
| B’s Capital A/c | 14,500 | 43,500 | |||
| 2,29,500 | 2,29,500 | ||||
Partners’ Capital Account
| Part. | A | B |
Part. |
A | B |
|---|---|---|---|---|---|
| To Balance b/d | 30,000 | By Balance B/d | 50,000 | ||
| To Realization loss A/c | 56,600 | - | By Realization Liabilities A/c | 37,333 | 18,667 |
| By Realization profit A/c | 29,000 | 14,500 | |||
| To Cash A/c | 81,333 | 3,167 | |||
| 1,16,333 | 33,167 | 1,16,333 | 33,167 |
A's Loan Account
| Particular |
Amount | Particular | Amount | ||
|---|---|---|---|---|---|
| Bank A/c | 34,000 | Balance b/d | 34,000 | ||
| 34,000 | 34,000 | ||||
Bank Account
| Particular |
Amount | Particular | Amount | ||
|---|---|---|---|---|---|
| Balance b/d | 10,000 | Realization A/c | 40,000 | ||
| Cash A/c | 6,000 | A’s Capital A/c | 81,333 | ||
| Realization A/c | 1,42,500 | A’s Capital A/c | 3,167 | ||
| A’s Loan A/c | 34,000 | ||||
| 1,58,500 | 1,58,500 | ||||
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.29 | 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.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Q.No.29 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1" instantly.
