Question 05 Chapter 7 of +2-A - T.S. Grewal 12 Class Part

Question 05 Chapter 7 of +2-A

Table of Contents

The solution of Question 05 Chapter 7 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

5. Pass Journal entries for the following at the time of dissolution of a firm: a Sale of Assets − 50,000.
b Payment of Liabilities − 10,000.
c A commission of 5% allowed to Mr. X, a partner, on sale of assets.
d Realization expenses amounted to 15,000. The firm had agreed with Amrit, a partner, to reimburse him up to 10,000.
e Z, an old customer, whose account for 6,000 was written off as bad in the previous year, paid 60% of the amount written off.
f Investment Book Value 10, 000 realized at 150%.

The solution of Question 05 Chapter 7 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
a	Cash A/c	Dr.		50,000
	To Realization A/c				50,000
	(Being Assets realized for cash)
b	Realization A/c	Dr.		10,000
	To Cash A/c				10,000
	(Being Payment of liabilities made)
c	Realization A/c	Dr.		2,500
	To X’s Capital A/c				2,500
	(Being Commission paid to X’s capital for sale of assets)
	Realization A/c	Dr.		10,000
d	Amrit’s Capital A/c	Dr.		5,000
	To Cash A/c				15,000
	(Being Realization expenses paid)
e	Cash A/c	Dr.		3,600
	To Realization A/c				3,600
	(Being Payment of liabilities made)
f	Cash A/c	Dr.		15,000
	To Realization A/c				15,000
	(Being Investments are realized at 150)

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. 8 – Company Accounts – Accounting for Share Capital
Chapter No. 9 – Company Accounts – Issue of Debentures
Chapter No. 10 – Redemption of Debentures

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

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