Question 05 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 05 Chapter 7 of +2-A

Question 05 Chapter 7 of +2-A

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)

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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2 Book 1 min - Question 05 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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