Q.No.51 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

 

The solution of Question 51 Chapter  7 of +2-A: -

 

Profit and Loss Appropriation for the year ended March 31, 2017

Particular 5		Amount	Particular		Amount
Interest on Capital A/c:			Profit and Loss A/c		21,600
X (40,000 × 15%)	6,000		Interest on Drawings
Y (30,000 × 15%)	4,500		X (6,000 × 5%)	300
Z (20,000 × 15%)	3,000	13,500	Y (6,000 × 5%)	300
			Z (6,000 × 5%)	300	900
Profit transferred to:
X’s Capital A/c	4,500
Y’s Capital A/c	3,000
Z’s Capital A/c	1,500	9,000
		22,500			22,500

 

 

Partners’ Capital Accounts for the year 2016-17

Part.	X	Y	Z	Part.	X	Y	Z
To Drawing A/c	6,000	6,000	6,000	By Cash A/c	40,000	30,000	20,000
To Interest on Drawings A/c	300	300	300	By Interest on Capital A/c	6,000	4,500	3,000
				By P/L Appropriation A/c (WN 3)	4,500	3,000	1,500
To Cash A/c	44,200	31,200	18,200
	50,500	37,500	24,500		50,500	37,500	24,500

 

Profit and Loss Appropriation for the year ended March 31, 2018

Particular 5		Amount	Particular		Amount
Interest on Capital A/c:			Profit and Loss A/c		25,140
X (40,000 × 15%)	6,630		Interest on Drawings
Y (30,000 × 15%)	4,680		X (6,000 × 5%)	300
Z (20,000 × 15%)	2,730	14,040	Y (6,000 × 5%)	300
			Z (6,000 × 5%)	300	900
Profit transferred to:
X’s Capital A/c	6,000
Y’s Capital A/c	4,000
Z’s Capital A/c	2,000	12,000
		26,040			26,040

 

Partners’ Capital Accounts for the year 2017-18

Part.	X	Y	Z	Part.	X	Y	Z
To Drawing A/c	6,000	6,000	6,000	By Cash A/c	40,000	30,000	20,000
To Interest on Drawings A/c	300	300	300	By Interest on Capital A/c	6,630	4,680	2,730
				By P/L Appropriation A/c	6,000	4,000	2,000
To Cash A/c	50,530	33,580	16,630
	56,830	39,880	22,930		56,830	39,880	22,930
				By Balance b/d	50,530	33,580	16,630
				By Realization A/c Profit	750	500	250
To Cash A/c	51,280	34,080	16,880
	51,280	34,080	16,880		51,280	34,080	16,880

 

 

 

Revaluation Account

Particular 5		Amount	Particular		Amount
Sundry Assets		1,18,740	Creditors		20,000
Cash A/c:			Cash Assets realized		1,21,000
Creditors	20,000
Expenses	760	20,760
Profit transferred to:
X’s Capital A/c	750
Y’s Capital A/c	500
Z’s Capital A/c	250	1,500
		1,41,000			1,41,000

 

Partners’ Capital Accounts

Part.	X	Y	Z	Part.	X	Y	Z
				By Cash A/c	50,530	33,580	16,630
				By Realization A/c Profit	750	500	250
To Cash A/c	51,280	34,080	16,880
	51,280	34,080	16,880		51,280	34,080	16,880

 

Cash Account

Particular		Amount	Particular		Amount
Balance b/d		2,000	Realization A/c		20,760
Realization A/c		1,21,000
			X’s Capital A/c		51,280
			Y’s Capital A/c		34,080
			Z’s Capital A/c		16,880
		1,23,000			1,23,000

Working Note:

 

Memorandum Balance Sheet

Particular		Amount	Particular		Amount
Capital A/cs:			Cash		2,000
X’s Capital A/c	50,530		Sundry Assets		1,18,740
Y’s Capital A/c	33,580
Z’s Capital A/c	16,630	1,00,740
Creditors		20,000
		1,20,740			1,20,740

 

 

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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