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

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.	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

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

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

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 – Ratio Analysis
• Chapter No. 5 – Cash Flow Statement

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