Question 07 Chapter 7 of +2-A - T.S. Grewal 12 Class Part

Question 07 Chapter 7 of +2-A

Table of Contents

The solution of Question 07 Chapter 7 of +2-A: –

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

7.Pass necessary Journal entries for the following transactions on the dissolution of the firm P and Q after the various assets other than cash and outside liabilities have been transferred to Realization Account:
a Bank Loan 12,000 was paid.
b Stock worth 16,000 was taken over by partner Q.
c Partner P paid a creditor 4,000.
d An asset not appearing in the books of accounts realized 1,200.
e Expenses of realization 2,000 were paid by partner Q. f Profit on realization 36,000 was distributed between P and Q in 5 : 4 ratio.

The solution of Question 07 Chapter 7 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
a	Partner’s Loan A/c	Dr.		12,000
	To Bank A/c				12,000
	(Being Bank loan paid at the time of dissolution)
b	Q’s Capital A/c	Dr.		16,000
	To Realization A/c				16,000
	(Being Stock took over by Q)
c	Realization A/c	Dr.		4,000
	To P’s Capital A/c				4,000
	(Being Loss distributed)
	Bank A/c	Dr.		1,200
	To Realization A/c				1,200
	(Being Unrecorded assets realized)
d	Realizations A/c	Dr.		2,000
	To Q’s Capital A/c				2,000
	(Being Realization expenses paid by Q)
f	Realization A/c	Dr.		36,000
	To P’s Capital A/c				20,000
	To Q’s Capital A/c				16,000
	(Being Realisation Profit distributed)

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

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