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Question 41 Chapter 7 of +2-Part-1
41. (Memorandum Balance Sheet/Ledger Ales) A and B were partners in a business sharing profits and losses in the ratio of 3 :1 respectively. They decided to dissolve their partnership on lit January 2015. On that date, the capital of A and B were Rs. 10,000 and Rs. 5,000 respectively, the amount owing by A to the firm was Rs. 3,200 and the amount owed by the firm to B was Rs. 4,000. The creditors amounted to Rs. 25,000 and cash Rs. 2,700. The remaining assets other than the amount owing by A to the firm realised Rs. 29,600. The expenses of realisation amounted to Rs. 1,500.
Prepare the balance sheet of A and B immediately prior to dissolution and necessary accounts to close the books of the firm.
Balance Sheet
| Liabilities | Amount | Assets | Amount | ||
|---|---|---|---|---|---|
| Sundry creditors | 25,000 | Cash A/c | 2,700 | ||
| B’s loan A/c | 4,000 | A’s loan A/c | 3,200 | ||
| To Capital A/c | Sundry Assets (balancing figures ) | 38,100 | |||
| A | 10,000 | ||||
| B | 5,000 | ||||
| 44,000 | 44,000 | ||||
Realisation A/c
| Particulars |
Amount | Particulars | Amount | ||
|---|---|---|---|---|---|
| To sundry Assets | 38,100 | By Sundry creditors A/c | 25,000 | ||
| To Cash A/c - Creditors | 25,000 | By Cash A/c – assets realised | 29,600 | ||
| To Cash A/c – Realisation Expenses | 1,500 | By loss on realisation | |||
| A | 7,500 | ||||
| B | 2,500 | 10,000 | |||
| 64,600 | 64,600 | ||||
Partners’ Capital Account
| Particulars | A | B |
Particulars | A | B |
|---|---|---|---|---|---|
| To Realisation A/c loss | 7,500 | 2,500 | By Balance b/d | 10,000 | 5,000 |
| To A’s loan | 3,200 | ||||
| To Cash A/c | |||||
| To Cash A/c | - | 2,500 | By Cash A/c | 700 | |
| 10,700 | 5,000 | 10,700 | 5,000 |
Cash A/c
| Particulars | Amount | Particulars | Amount | ||
|---|---|---|---|---|---|
| To balance b/d | 2,700 | By realisation A/c | |||
| To Realisation A/c | Payment to creditors | 25,000 | |||
| Assets Realised | 29,600 | Realisation expenses | 1,500 | ||
| To A’s capital A/c | 700 | By B’s loan A/c | 4,000 | ||
| By B’s capital A/c | 2,500 | ||||
| 33,000 | 33,000 | ||||
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 "Question 41 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
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