Q.No.45 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 45 Chapter 7 of +2-A

45. A, B and C started business on 1st April, 2016 with capitals of 1,00,000; 80,000 and 60,000 respectively sharing profits losses in the ratio of 4 : 3 : 3 . For the year ended 31st March, 2017, the firm suffered a loss of 50,000 . Each of the partners withdrew 10,000 during the year. On 31st March, 2017, the firm was dissolved, the creditors of the firm stood at 24,000 on that date and Cash in Hand was 4,000. The assets realised 3,00,000 and Creditors were paid 23,500 in full settlement of their claims . Prepare Realisation Account and show your workings clearly.

 

 

The solution of Question 45 Chapter  7 of +2-A: -

 

Realization Account

Particular 5		Amount	Particular		Amount
Sundry Assets (WN 2)		1,80,000	Sundry Creditors		24,000
Cash A/c Creditors		23,500	Cash A/c Assets		3,00,000
Profit transferred to:
A’s Capital A/c	48,200
B’s Capital A/c	36,150
C’s Capital A/c	36,150	1,20,500
		3,20,000			3,20,000

 

 

Partners’ Capital Account
Part.	A	B	C	Part.	A	B	C
				By Balance B/d	70,000	55,000	35,000
				By Realization Profit A/c	48,200	36,150	36,150
To Cash A/c	1,18,200	91,150	71,150
	1,18,200	91,150	71,150		1,18,200	91,150	71,150

 

Cash Account

Particular		Amount	Particular		Amount
Realization A/c		4,000	Realization A/c		23,500
Realization A/c		3,00,000
			A’s Capital A/c		1,18,200
			B’s Capital A/c		91,150
			C’s Capital A/c		71,150
		3,04,000			3,04,000

Working Note:

 

Memorandum Balance Sheet

Particular		A	B	C
Capital as on April 01, 2016		1,00,000	80,000	60,000
Less : Drawings		10,000	10,000	10,000
Less: Share of Loss 4 : 3 : 3		20,000	15,000	15,000
Capital as on April 01, 2017		70,000	55,000	35,000

 

Memorandum Balance Sheet

Particular		Amount	Particular		Amount
Creditors		24,000	Cash in Hand		4,000
Capital A/cs			Sundry Assets (Balancing figure)		1,80,000
A’s Capital A/c	70,000
B’s Capital A/c	55,000
C's Capital A/c	35,000	1,60,000
		1,84,000			1,84,000

 

 

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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