Question 09 Chapter 7 of +2-A - T.S. Grewal 12 Class Part

Question 09 Chapter 7 of +2-A

Table of Contents

The solution of Question 09 Chapter 7 of +2-A: –

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

9. Pass necessary Journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya:
a There was an old furniture in the firm which had been written off completely in the books. This was sold for 3,000.
b Ashish, an old customer whose account for 1,000 was written off as bad in the previous year, paid 60%, of the amount.
c Paras agreed to takeover the firm’s goodwill not recorded in the books of the firm, at a valuation of 30,000.
d There was an old typewriter which had been written off completely from the books. It was estimated to realise 400. It was taken by Priya at an estimated price less 25%.
e There were 100 shares of 10 each in Star Limited acquired at a cost of 2,000 which had been written-off completely from the books. These shares are valued @ 6 each and divided among the partners in their profit-sharing ratio.

The solution of Question 09 Chapter 7 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
a	Cash/Bank A/c	Dr.		3,000
	To Realization A/c				3,000
	(Being Old and unrecorded furniture sold)
b	Cash/Bank A/c	Dr.		600
	To Realization A/c				600
	(Being Bad debts previously written off now recovered)
c	Paras’s Capital A/c	Dr.		30,000
	Paras’s Capital A/c				30,000
	(Being Unrecorded goodwill taken over by Paras)
d	Priya’s Capital A/c	Dr.		300
	To Realization A/c				300
	(Being Unrecorded Typewriter taken over by Priya at 25)
e	Paras’s Capital A/c	Dr.		300
	Priya’s Capital A/c	Dr.		300
	To Realization A/c				600
	(Being 100 unrecorded shares of Rs10each in the books taken @Rs6 each by Paras and Priya and divided between the min profit sharing ratio)

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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