Question 04 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 04 Chapter 7 of +2- Part

Question 04 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

4. (Journal Entries) A firm of partner C and D sharing profits in 3:2 ratio was dissolve. The following balance appeared in the books:

  1. General Reserve Rs. 10,000
  2. Reserve Fund Rs. 8,000
  3. Profit and Loss A/c (Dr.) Rs. 20,000
  4. Advertisement Suspense A/c Rs. 5,000
  5. Partner C’s loan 10,000 was paid by the firm in cash .
  6. Loan Rs. 25,000 given by ‘D’ to the firm was transferred to his capital account .
    You are required to pass journal entries.

The solution of Question 04 Chapter 7 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit
a&b) General Reserve A/c Dr.   10,000  
  Reserve Fund A/c Dr.   8,000  
  To C’s capital A/c       10,800
  To D’s capital A/c       7,200
  (Being reserve credited in 3:2)        
           
c&d) C’s capital A/c Dr.   15,000  
  D’s capital A/c Dr.   10,000  
  To profit & loss A/c       20,000
  To Advertisement suspense A/c       5,000
  (Being losses debited to partners in3:2)        
           
e) C’s loan A/c Dr.   10,000  
  To Cash A/c       10,000
  (Being creditors paid off at 5 % discount on dissolution )        
           
f) D’s loan A/c Dr.   25,000  
  To Cash A/c       25,000
  (Being realisation expense paid off )        
         

Comment if you have any questions.


Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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

2 Book 1 min - Question 04 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

2 thoughts on “Question 04 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1”

  1. question 4 d) joural entry for loan ₹25000 Given by D to the firm was transferred to his capital account.
    so entry will be :

    D’s loan A/c dr. 25000
    To D’s capital A/c 25000

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