Q.No.40 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 40 Chapter 7 of +2-A

40. A, B and C were partners sharing profits int he ratio of 5 : 3 : 2 . On 31st March, 2018, A's Capital and B's Capital were 30,000 and 20,000 respectively but C owed 5,000 to the firm . the liabilities were 20,000 .The assets of the firm realized 50,000. Prepare Realization Account , Partner's Capital Accounts and Bank Account.

 

 

The solution of Question 40 Chapter  7 of +2-A: -

 

Realization Account

Particular		Amount	Particular		Amount
Sundry Assets (WN)		65,000	Creditors		20,000
Cash A/c		20,000	Cash A/c (Assets realized)		50,000
			Loss on Revaluation
			A’s Capital A/c	7,500
			B’s Capital A/c	4,500
			C’s Capital A/c	3,000	15,000
		85,000			85,000

 

 

Partners’ Capital Account
Part.	A	B	C	Part.	A	B	C
To Balance B/d	-	-	5,000	By Balance B/d	30,000	20,000	-
To Realization Loss A/c	7,500	4,500	3,000		-	-
To Cash A/c	22,500	15,500	8,000	BY cash A/c			8,000
	30,000	20,000	8,000		30,000	20,000	8,000

 

Bank Account

Particular		Amount	Particular		Amount
Realisation A/c Assets		50,000	Realization A/c		20,000
C’s Capital A/c		8,000	A’s Capital A/c		22,500
			B’s Capital A/c		15,500
		58,000			58,000

 

Working Note:

 

Memorandum Balance Sheet

Particular		Amount	Particular		Amount
Other liabilities		20,000	C’s Capital A/c		5,000
Capital A/c			Sundry Assets		65,000
A	30,000
B	20,000	50,000
		70,000			70,000

 

 

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

 

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