Question 07 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 07 Chapter 7 of +2-A

Question 07 Chapter 7 of +2-A

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)

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 07 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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