Question 51 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 51 Chapter 7 of +2-A

Question 51 Chapter 7 of +2-A

51. X, Y and Z entered into partnership on 1st April, 2016. They contributed capital 40,000, 30,000 and 20,000 respectively and agreed to share profits in the ratio of 3 : 2 : 1. Interest on capital was to be allowed @ 15% p.a. and interest on drawings was to be charged at an average rate of 5%. During the two years ended 31st March, 2018, the firm made profit of 21,600 and 25,140 respectively before allowing or charging interest on capital and drawings. The drawings of each partner were 6,000 per year. On 31st March, 2018, the partners decided to dissolve the partnership due to difference of opinion. On that date, the creditors amounted to 20,000. The assets, other than cash 2,000, realised 1,21,000. Expenses of dissolution amounted to 760. Draw up necessary Ledger Accounts to close the books of the firm.

 

 

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)

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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2 Book 1 min - Question 51 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 50 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 50 Chapter 7 of +2-A

Question 50 Chapter 7 of +2-A

50. P, Q and R are three partners sharing profits and losses in the ratio of 3 : 3 : 2 respectively . Their respective capitals are in their profit-sharing proportions . On 1st April, 2017 , the total capital of the firm and the balance of General Reserve are 80,000 and 20,000 respectively. During the year 2017-18 the firm made a profit of 28,000 before charging interest on capital @ 5%. The drawings of the partners are P— 8,000; Q— 7,000; and R— 5,000. On 31st March, 2018 their liabilities were 18,000. On this date , they decided to dissolve the firm. The assets realised 1,08,600 and realisation expenses amounted to 1,800. Prepare necessary Ledger Accounts to close the books of the firm.

 

 

The solution of Question 50 Chapter  7 of +2-A: –

 

Revaluation Account
Particular 5
Amount Particular Amount
Revaluation Account 1,26,000 Creditors   18,000
X’s Capital A/c Creditors   14,000 Cash A/c Assets Realized   1,08,600
Cash A/c          
Creditors 18,000        
Expenses 1,800 19,800      
           
      Loss transferred to:    
      P’s Capital A/c 7,200  
      Q’s Capital A/c 7,200  
      R’s Capital A/c 4,800 19,200
    1,14,800     1,14,800

 

 

Partners’ Capital Account
Part. P Q R

Part.

P Q R
To Drawing A/c 8,000 7,000 5,000 By Balance B/d 30,000 30,000 20,000
To Realization Loss A/c 7,200 7,200 4,800 By Interest on Capital A/c 1,500 1,500 1,000
        By P/L Appropriation A/c (WN 3) 9,000 9,000 9,000
               
To Cash A/c 32,800 32,800 22,200        
  48,000 48,000 32,000   48,000 48,000 32,000

 

Cash Account
Particular
Amount Particular Amount
Capital A/cs   Sundry Assets (Balancing figure)   1,26,000
P’s Capital A/c 22,000        
Q’s Capital A/c 23,000        
R’s Capital A/c 15,000 60,000      
General Reserve   20,000      
Profit and Loss A/c   28,000      
Creditors   18,000      
           
    1,26,000     1,26,000


Working Note:

 

Computation of Partners’ Capital after drawings
as on 31st March 2018
Part. P Q R

Part.

P Q R
To Drawing A/c 8,000 7,000 5,000 By Balance B/d 30,000 30,000 20,000
               
               
               
To Cash A/c 22,000 23,000 15,000        
  30,000 30,000 20,000   30,000 30,000 20,000

 

 

Profit and Loss Appropriation Account Dr. for the year ending 31st March, 2018
Particular
Amount Particular Amount
Interest on Capital   Profit and Loss A/c   28,000
P’s Capital A/c 1,500        
Q’s Capital A/c 1,500        
R’s Capital A/c 1,000 4,000      
Profit transferred to:          
P’s Capital A/c 9,000        
Q’s Capital A/c 9,000        
R’s Capital A/c 6,000 24,000      
    28,000     28,000

 

 

 

 

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)

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

2 Book 1 min - Question 50 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 49 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 49 Chapter 7 of +2-A

Question 49 Chapter 7 of +2-A

49. X and Y were partners sharing profits and losses in the ratio of 3: 2. They decided to dissolve the firm on 31st March 2018. On that date, their Capitals were X— 40,000 and Y — 30,000. Creditors amounted to 24,000. Assets were realised for 88,500. Creditors of 16,000 were taken over by X at 14,000. Remaining Creditors were paid at 76,500. The cost of a realisation came to 500. Prepare necessary accounts.

 

 

The solution of Question 49 Chapter  7 of +2-A: –

 

Revaluation Account
Particular 5
Amount Particular Amount
Sundry Assets 94,000 Creditors   24,000
X’s Capital A/c Creditors   14,000 Cash Assets Realized   88,500
Cash A/c          
Creditors 7,500        
Expenses 500 8,000      
           
      Loss transferred to:    
      X’s Capital A/c 2,100  
      Y’s Capital A/c 1,400 3,500
    1,16,000     1,16,000

 

 

Partners’ Capital Account
Part. X Y

Part.

X Y
      By Balance B/d 40,000 30,000
To Realization Loss A/c 2,100 1,400 By Realization A/c 14,000
           
           
To Cash A/c 51,900 28,600      
  54,000 30,000   54,000 30,000

 

Cash Account
Particular
Amount Particular Amount
Realization A/c Asset 88,500 Realization A/c Creditors   8,000
           
      X’s Capital A/c   51,900
      Y’s Capital A/c   28,600
           
    88,500     88,500


Working Note:

 

Memorandum Balance Sheet
Particular
Amount Particular Amount
         
Capital A/cs     Sundry Assets (Balancing figure)   94,000
X’s Capital A/c 40,000        
Y’s Capital A/c 30,000 70,000      
           
Creditors   24,000      
    94,000     94,000

 

 

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)

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

2 Book 1 min - Question 49 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 48 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 48 Chapter 7 of +2-A

Question 48 Chapter 7 of +2-A

48. The partnership between A and B was dissolved on 31st March, 2018. On that date, the respective credits to the capitals were A— 1,70,000 and B— 30,000. 20,000 were owed by B to the firm; 1,00,000 were owed by the firm to A and 2,00,000 were due to the Trade Creditors. Profits and losses were shared in the proportions of 2/3 to A, 1/3 to B. The assets represented by the above stated net liabilities realise 4,50,000 exclusive of 20,000 owed by B. The liabilities were settled at book figures. Prepare Realisation Account, Partners’ Capital Accounts and Cash Account showing the distribution to the partners.

 

 

The solution of Question 48 Chapter  7 of +2-A: –

 

Revaluation Account
Particular 5
Amount Particular Amount
Sundry Assets (WN) 4,80,000 Trade Creditors   2,00,000
B’s Loan   20,000 Cash Assets realized   4,50,000
Cash A/c Creditors   2,00,000 B’s Capital A/c B’s Loan   20,000
           
           
           
      Loss transferred to:    
      A’s Capital A/c 20,000  
      B’s Capital A/c 10,000 30,000
    7,00,000     7,00,000

 

 

Partners’ Capital Account
Part. A B

Part.

A B
To Realization A/c 20,000 By Balance B/d 1,70,000 30,000
To Realization Loss A/c 20,000 20,000      
           
           
To Cash A/c 1,50,000      
  1,70,000 30,000   1,70,000 30,000

 

Cash Account
Particular
Amount Particular Amount
Realization A/c Asset 4,50,000 Realization A/c Creditors   2,00,000
           
      A’s Capital A/c   1,50,000
      A’s Loan A/c   1,00,000
           
    4,50,000     4,50,000


Working Note:

 

Memorandum Balance Sheet
Particular
Amount Particular Amount
    Sundry Assets (Balancing figure)   20,000
Capital A/cs     Sundry Assets (Balancing figure)   4,80,000
A’s Capital A/c 1,70,000        
B’s Capital A/c 30,000 2,00,000      
A’s Loan   1,00,000      
Trade Creditors   2,00,000      
    5,00,000     5,00,000

 

 

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)

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

2 Book 1 min - Question 48 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 47 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 47 Chapter 7 of +2-A

Question 47 Chapter 7 of +2-A

47. On 1st April, 2017 , A , B and C commenced business in partnership sharing profits and losses in proportion of 1/2,1/3 and 1/6 respectively . They paid into their Bank A/c as their capitals 22,000; 10,000 by A , 7,000 by B and 5,000 by C . During the year , they drew 5,000; being 1,900 by A, 1,700 by B and 1,400 by C . On 31st March, 2018, they dissolved their partnership , A taking up Stock at an agreed valuation of 5,000, B taking up Furniture at 2,000 and C taking up Debtors at 3,000. After paying up their Creditors, there remained a balance of 1,000 at Bank. Prepare necessary accounts showing the distribution of the cash at the Bank and of the further cash brought in by any partner or partners as the case required.

 

 

The solution of Question 47 Chapter  7 of +2-A: –

 

Realization Account
Particular 5
Amount Particular Amount
Sundry Asset 17,000 A’s Capital Stock   5,000
      B’s Capital Furniture   2,000
      C’s Capital Debtors   3,000
      Bank A/c Assets realized   1,000
           
           
      Loss transferred to:    
      A’s Capital A/c 3,000  
      B’s Capital A/c 2,000  
      C’s Capital A/c 1,000 6,000
    18,000     18,000

 

 

Partners’ Capital Account
 
Part. A B C

Part.

A B C
To Realization A/c 5,000 2,000 3,00 By Balance B/d 8,100 5,300 5,600
To Realization Loss A/c 3,000 2,000 1,000        
               
               
To Cash A/c 100 1,300 By Cash A/c     400
  8,100 5,300 4,000   8,100 5,300 4,000

 

Cash Account
Particular
Amount Particular Amount
Realization A/c 1,000      
C’s Capital A/c   400      
      A’s Capital A/c   100
      B’s Capital A/c   1,300
           
    1,400     1,400


Working Note:

 

Memorandum Balance Sheet
Particular
Amount Particular Amount
    Sundry Assets (Balancing figure)   17,000
Capital A/cs          
A’s Capital A/c 10,000 – 1,900 8,100      
B’s Capital A/c 7,000 – 1,700 5,300      
C’s Capital A/c 5000 – 1400 3,600      
           
    17,000     17,000

 

 

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)

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

2 Book 1 min - Question 47 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 46 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 46 Chapter 7 of +2-A

Question 46 Chapter 7 of +2-A

46. A, B and C were in partnership sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve the partnership. On that date of dissolution, Sundry Assets (including cash 5,000) amounted to 88,000, assets realised 80,000 including an unrecorded asset which realised 4,000. A contingent liability on account of bills discounted 8,000 was paid by the firm. The Capital Accounts of A, B and C showed a balance of 20,000 each. Prepare Realisation Account, Partners’ Capital Accounts and Cash Account.

 

 

The solution of Question 46 Chapter  7 of +2-A: –

 

Realization Account
Particular 5
Amount Particular Amount
Sundry Asset 83,000 Sundry Liabilities (WIN)   28,000
      Cash A/c Assets   80,000
           
Cash A/c          
Sundry Liabilities 28,000        
Contingent Liabilities 8,000 36,000      
      Loss transferred to:    
      A’s Capital A/c 5,500  
      B’s Capital A/c 2,750  
      C’s Capital A/c 2,750 11,000
    1,19,000     1,19,000

 

 

Partners’ Capital Account
 
Part. A B C

Part.

A B C
To Realization Loss A/c 5,500 2,750 2,750 By Balance B/d 20,000 20,000 20,000
               
               
               
To Cash A/c 14,500 17,250 17,250        
  20,000 20,000 20,000   20,000 20,000 20,000

 

Cash Account
Particular
Amount Particular Amount
Balance b/d 5,000 Realization A/c   36,000
Realization A/c   80,000      
      A’s Capital A/c   14,500
      B’s Capital A/c   17,250
      C’s Capital A/c   17,250
    85,000     85,000


Working Note:

 

Memorandum Balance Sheet
Particular
Amount Particular Amount
    Cash in Hand   5,000
Capital A/cs     Sundry Assets   83,000
A’s Capital A/c 20,000        
B’s Capital A/c 20,000        
C’s Capital A/c 20,000 60,000      
Sundry Liabilities (Balancing figure)   28,000      
    88,000     88,000

 

 

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)

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

2 Book 1 min - Question 46 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 45 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 45 Chapter 7 of +2-A

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)

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

2 Book 1 min - Question 45 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 44 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 44 Chapter 7 of +2-A

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)

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

2 Book 1 min - Question 44 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 43 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 43 Chapter 7 of +2-A

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

 

The solution of Question 43 Chapter  7 of +2-A: –

 

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)

  • 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)

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

2 Book 1 min - Question 43 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 42 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 42 Chapter 7 of +2-A

Question 42 Chapter 7 of +2-A

41. A and B dissolve their partnership . Their position as at 31st March , 2018 was:

Particulars  
A’s Capital 25,000
B’s Capital 15,000
Sundry Creditors 20,000
Cash in Hand and at Bank 750

The balance of A’s Loan Account to the firm stood at 10,000. The realization expenses amounted to 350. Stock realized 20,000 and Debtors 25,000 . B took a machine at the agreed valuation of 7,500.
You are required to close the books of the firm.

 

The solution of Question 42 Chapter  7 of +2-A: –

 

Realization Account
Particular
Amount Particular Amount
Sundry Assets (WN) 69,250 Sundry Creditors   20,000
Cash A/c Liabilities   5,000      
      Bank A/c:    
Bank A/c:     Stock 20,000  
S. Creditors 20,000   Debtors 25,000  
Expenses 350 20,350 Other Asset 20,000 65,000
Profit transferred to:     Cash A/c Assets Realized   24,000
A’s Capital A/c 1,450        
B’s Capital A/c 1,450 2,900      
    92,500     92,500

 

 

Partners’ Capital Account
Part. A B

Part.

A B
By Realization A/c Machinery   7,500 By Balance B/d 25,000 15,000
      By Realization A/c Profit 1,450 1,450
           
           
To Cash A/c 26,450 8,950      
  26,450 16,450   26,450 16,450

 

A’s Loan Account
Particular
Amount Particular Amount
Bank A/c 10,000 Balance b/d   10,000
           
           
           
           
    10,000     10,000

 

Bank Account
Particular
Amount Particular Amount
Balance b/d 750 A’s Loan A/c   10,000
Realization A/c   65,000 A’s Capital A/c   26,450
      B’s Capital A/c   8,950
      Realization A/c   20,350
           
    65,750     65,750


Working Note:

 

Memorandum Balance Sheet
Particular
Amount Particular Amount
Sundry Creditors 20,000 Cash in Hand and at Bank   750
Capital A/c     Sundry Assets   69,250
A 25,000        
B 15,000 40,000      
A’s Loan   10,000      
    70,000     70,000

 

 

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)

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

2 Book 1 min - Question 42 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms