Question 13 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 13 Chapter 7 of +2-A

Question 13 Chapter 7 of +2-A

13. Lal and Pal were partners in a firm sharing profits in the ratio of 3 : 7. On 1st April, 2015 their firm was dissolved. After transferring assets other than cash and outsider’s liabilities to Realization Account, you are given the following information:
a A creditor of 3,60,000 accepted machinery valued at 5,00,000 and paid to the firm 1,40,000.
b A second creditor for 50,000 accepted stock at 45,000 in full settlement of his claim.
c A third creditor amounting to 90,000 accepted 45,000 in cash and investments worth 43,000 in full settlement of his claim.
d Loss on dissolution was 15,000. Pass necessary Journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.

 

The solution of Question 13 Chapter 7 of +2-A: –

 

Date Particulars
L.F. Debit Credit
a Bank A/c Dr.   1,40,000  
  To Realization A/c       1,40,000
  (Being Accreditor of Rs3,60,000accepted machinery valued at Rs5,00,000 and paid Rs1,40, 000 to the firm)      
b No entry .      
           
           
c Realization A/c Dr.   26,000  
  To Cash A/c       26,000
  ( Being Athird creditor of Rs90,000 accepted Rs45,000 in cash and investments worth Rs43,000 in full settlement of his claim)        
d Lal’s Capital A/c Dr.   4,500  
  Pal’s Capital A/c Dr.   10,500  
  To Realization A/c       15,000
  (Being Loss on dissolution transferred to partners ‘capital accounts)        

 

 

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 13 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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