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

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)

• 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

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

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)

• 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

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

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)

• 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

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

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)

• 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

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

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)

• 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

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

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)

• 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

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

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

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

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)

• 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

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

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)

• 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