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

Question 12 Chapter 7 of +2-A

Question 12 Chapter 7 of +2-A

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)

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 12 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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