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

Question 12 Chapter 7 of +2-A
Question No.12 Chapter No.7 - T.S. Grewal +2 Book 2019-Solution

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Question 12 Chapter 7 of +2-A

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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: –

 

DateParticulars
L.F.DebitCredit
aRealization A/cDr. 1,00,000 
 To Sundry Assets A/c   1,00,000
 (Being All assets other than cash and bank transferred to Realization Account)   
bAtul’s Capital A/cDr. 40,000 
 To Realization A/c   40,000
 (Being Atul took over 50)    
cBank A/cDr. 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)    

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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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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