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Question 43 Chapter 7 of +2-A
43. Ashok and Kishore were in partnership sharing profits in the ratio of 3: 1. They agreed to dissolve the firm. The assets (other than cash of 2,000) of the firm realized 1,10,000. The liabilities and other particulars on that date were: Ashok and Kishore were in partnership sharing profits in the ratio of 3: 1. They agreed to dissolve the firm. The assets (other than cash of 2,000) of the firm realized 1,10,000. The liabilities and other particulars on that date were:
| Particulars | |
| Creditors | 40,000 |
| Ashok's Capita | 1,00,000 |
| Kishore's Capita | 10,000 Dr Balance |
| Profit and Loss A/c | 8,000 Dr Balance |
| Realization Expenses | 1,000 |
You are required to close the books of the firm
Realization Account
| Particular 5 |
Amount | Particular | Amount | ||
|---|---|---|---|---|---|
| Sundry Assets (WN) | 1,20,000 | Creditors | 40,000 | ||
| Cash A/c Assets Realized | 1,10,000 | ||||
| Cash A/c: | |||||
| Creditors | 40,000 | ||||
| Expenses | 1,000 | 41,000 | |||
| Loss transferred to: | |||||
| Ashok’s Capital A/c | 8,250 | ||||
| Kishore’s Capital A/c | 2,750 | 11,000 | |||
| 1,61,000 | 1,61,000 | ||||
Partners’ Capital Account
| Part. | Ashok | Kishore |
Part. |
Ashok | Kishore |
|---|---|---|---|---|---|
| By Balance b/d | 10,000 | By Balance B/d | 1,00,000 | - | |
| By Realization A/c Loss | 8,250 | 2,750 | |||
| By Profit and Loss A/c | 6,000 | 2,000 | |||
| To Cash A/c | 85,750 | - | By Cash A/c | - | 14,750 |
| 1,00,000 | 14,750 | 1,00,000 | 14,750 |
Cash Account
| Particular |
Amount | Particular | Amount | ||
|---|---|---|---|---|---|
| Balance b/d | 2,000 | Realization A/c | 41,000 | ||
| Realization A/c | 1,10,000 | Ashok’s Capital A/c | 85,750 | ||
| Kishore’s Capital A/c | 14,750 | ||||
| 1,26,750 | 1,26,750 | ||||
Working Note:
Memorandum Balance Sheet
| Particular |
Amount | Particular | Amount | ||
|---|---|---|---|---|---|
| Creditors | 40,000 | Cash | 2,000 | ||
| Ashok’s Capita | 1,00,000 | Kishore’s Capital | 10,000 | ||
| Profit and Loss A/c | 8,000 | ||||
| Sundry Assets (Balancing figure) | 1,20,000 | ||||
| 1,40,000 | 1,40,000 | ||||
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.43 | 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.
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