Q.No.44 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 44 Chapter 7 of +2-A

44. X, Y and Z entered into a partnership and contributed 9,000; 6,000 and 3,000 respectively. They agreed to share profits and losses equally. The business lost heavily during the very first year and they decided to dissolve the firm. After realizing all assets and paying off liabilities, there remained a cash balance of 6,000. Prepare Realization Account and Partner's Capital Accounts.

 

 

The solution of Question 44 Chapter  7 of +2-A: -

 

Realization Account

Particular 5		Amount	Particular		Amount
Sundry Assets (WN)		18,000	Cash A/c (Assets realized)		6,000
			Loss transferred to:
			X’s Capital A/c	4,000
			Y’s Capital A/c	4,000
			Z’s Capital A/c	4,000	12,000
		18,000			18,000

 

 

Partners’ Capital Account
Part.	X	Y	Z	Part.	X	Y	Z
To Realization Loss A/c	4,000	4,000	4,000	By Balance B/d	9,000	6,000	3,000
By Realization A/c Loss	8,250	2,750
By Profit and Loss A/c	6,000	2,000
To Cash A/c	5,000	2,000	-	By Cash A/c	-		1,000
	9,000	6,000	4,000		9,000	6,000	4,000

 

Cash Account

Particular		Amount	Particular		Amount
Realization A/c		6,000
Z’s Capital A/c		1,000
			X’s Capital A/c		5,000
			Y’s Capital A/c		2,000
		7,000			7,000

Working Note:

 

Memorandum Balance Sheet

Particular		Amount	Particular		Amount
			Sundry Assets (Balancing figure)		18,000
Capital A/cs
X’s Capital A/c	9,000
Y’s Capital A/c	6,000
Z’s Capital A/c	3,000	18,000
		18,000			18,000

 

 

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication