Question 12 Chapter 7 of +2-A
Table of Contents
12. Book Value of assets other than cash and bank transferred to Realization Account is 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realized nothing and remaining assets are handed over to a Creditor, in full settlement of his claim. You are required to record the Journal entries for realization of assets.
The solution of Question 12 Chapter 7 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| a | Realization A/c | Dr. | 1,00,000 | ||
| To Sundry Assets A/c | 1,00,000 | ||||
| (Being All assets other than cash and bank transferred to Realization Account) | |||||
| b | Atul’s Capital A/c | Dr. | 40,000 | ||
| To Realization A/c | 40,000 | ||||
| (Being Atul took over 50) | |||||
| c | Bank A/c | Dr. | 26,000 | ||
| To Realization A/c | 26,000 | ||||
| (Being Assets worth Rs20,000, i. e. 40) | |||||
| 50, 000 ×(40/100)×(130/100 | |||||
| No entry for obsolete assets and for the assets given to the creditors in the full settlement as these are already transferred to the Realization Account) | |||||
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
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