Question 04 Chapter 7 of +2- Part

Question 04 Chapter 7 of +2-Part-1

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.DebitCredit
a&b)General Reserve A/cDr. 10,000 
 Reserve Fund A/cDr. 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/cDr. 15,000 
 D’s capital A/cDr. 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/cDr. 10,000 
 To Cash A/c   10,000
 (Being creditors paid off at 5 % discount on dissolution )    
      
f)D’s loan A/cDr. 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

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