Question 15 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 15 Chapter 7 of +2-A

Question 15 Chapter 7 of +2-A

15. What Journal entries would be passed for discharge of following unrecorded liabilities on the dissolution of a firm of partners A and B:
a There was a contingent liability in respect of bills discounted but not matured of 18,500. An acceptor of one bill of 2,500 became insolvent and fifty paise in a rupee was recovered. The liability of the firm on account of this bill discounted and dishonored has not so far been recorded.
b There was a contingent liability in respect of a claim for damages for 75,000, such liability was settled for 50,000 and paid by the partner A.
c Firm will have to pay 10,000 as compensation to an injured employee, which was a contingent liability not accepted by the firm. d 5,000 for damages claimed by a customer has been disputed by the firm. It was settled at 70% by a compromise between the customer and the firm.

 

The solution of Question 15 Chapter 7 of +2-A: –

 

Date Particulars
L.F. Debit Credit
a Bank A/c Dr.   1,250  
  To Realization A/c       1,250
  (Being Amount received)      
  Realization A/c Dr.   2,500  
  To Bank A/c       2,500
  (Being Liability discharged )        
b Realization A/c Dr.   50,000  
  To A’s Capital A/c       50,000
  (Being Liability paid by a partner)        
c Realization A/c Dr.   10,000  
  To Bank A/c       10,000
  ( Being Liability discharged)        
d Realization A/c Dr.   3,500  
  To Bank A/c       3,500
  (Being Liability discharged)        
           

 

 

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 15 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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