Question 08 Chapter 7 of +2-A
8. X, Y and Z are partners in a firm sharing profits in the ratio of 3: 2: 1 respectively. The firm was dissolved on 1st March 2013. After transferring assets other than cash and third party liabilities to the ‘Realisation Account’ you are provided with the following information:
a There was a balance of 18,000 in the firm’s Profit and Loss Account.
b There was an unrecorded bike of 50,000 which was taken over by X.
c Creditors of 5,000 were paid 4,000 in full settlement of accounts. Pass necessary Journal entries for the above at the time of dissolution of the firm.
The solution of Question 08 Chapter 7 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| a | Profit and Loss A/c* | Dr. | 18,000 | ||
| To X’s Capital A/c | 9,000 | ||||
| To Y’s Capital A/c | 6,000 | ||||
| To Z’s Capital A/c | 3,000 | ||||
| (Being Balance in P&L A/c divided among Partners in the ratio of 3:2:1) | |||||
| b | X’s Capital A/c | Dr. | 50,000 | ||
| To Realization A/c | 50,000 | ||||
| (Being Anun recorded asset taken over by X) | |||||
| c | Realization A/c | Dr. | 4,000 | ||
| To Bank A/c | 4,000 | ||||
| (Being Creditors were paid Rs 4,000 in full settlement of their claim of Rs 5,000)) | |||||
| *Balance in Profit and Loss A/c always mean positive balance i.e. credit balance. | |||||
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
