Question 10 Chapter 7 of +2-A - T.S. Grewal 12 Class Part

Question 10 Chapter 7 of +2-A

Table of Contents

The solution of Question 10 Chapter 7 of +2-A: –

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

10. Aman and Harsh were partners in a firm. They decided to dissolve their firm. Pass necessary Journal entries for the following after various assets other than Cash and Bank and third party liabilities have been transferred to Realization Account:
a There was furniture worth 50,000. Aman took over 50% of the furniture at 10% discount and the remaining furniture was sold at 30% profit on book value.
b Profit and Loss Account was showing a credit balance of 15,000 on the date of dissolution.
c Harsh’s loan of 6,000 was discharged at 6,200.
d The firm paid realization expenses amounting to 5,000 on behalf of Harsh who had to bear these expenses.
e There was a bill for 1,200 under discount. The bill was received from Soham who proved insolvent and a first and final dividend of 25% was received from his estate.
f Creditors, to whom the firm owed 6,000, accepted stock of 5,000 at a discount of 5% and the balance in cash.

The solution of Question 10 Chapter 7 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
a	Aman’s Capital A/c	Dr.		22,500
	Bank A/c	Dr.		32,500
	To Realization A/c				55,000
	(Being Assets realized)
b	Profit & Loss A/c	Dr.		15,000
	To Aman’s Capital A/c				7,500
	To Harch’s Capital A/c				7,500
	(Being Profit distributed)
c	Harsh’s Loan A/c	Dr.		6,000
	Realisation A/c	Dr.		200
	To Bank A/c				6,200
	(Being Loan Discharged)
d	Bank A/c	Dr.		5,000
	To Realization A/c				5,000
	(Being Unrecorded assets realized)
e	Bank A/c	Dr.		300
	To Realization A/c				300
	(Being Amount received)
	Realisation A/c	Dr.		1,200
	To Bank A/c				1,200
	(Being Amount paid)
f	Realisation A/c	Dr.		1,250
	To Bank A/c				1,250
	(Being Creditors paid)
g	Aman’s Capital A/c	Dr.		4,000
	Harsh’s Capital A/c	Dr.		4,000
	To Realization A/c				8,000
	(Being Loss on dissolution transferred to Partners ′Capital A/c)

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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