
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:
- General Reserve Rs. 10,000
- Reserve Fund Rs. 8,000
- Profit and Loss A/c (Dr.) Rs. 20,000
- Advertisement Suspense A/c Rs. 5,000
- Partner C’s loan 10,000 was paid by the firm in cash .
- 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

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
Correct.