Question 10 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 10 Chapter 7 of +2-A

Question 10 Chapter 7 of +2-A

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)

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 10 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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