Question 16 Chapter 7 of +2-A - T.S. Grewal 12 Class Part

Question 16 Chapter 7 of +2-A

Table of Contents

The solution of Question 16 Chapter 7 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

16. Pass necessary Journal entries on the dissolution of a firm in the following cases:
a Dharam, a partner, was appointed to look after the process of dissolution at a remuneration of 12,000 and he had to bear the dissolution expenses. Dissolution expenses 11,000 were paid by Dharam.
b Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of 15,000. Jay agreed to bear dissolution expenses. Actual dissolution expenses 16,000 were paid by Vijay, another partner on behalf of Jay.
c Deepa, a partner, was to look after the process of dissolution and for this work she was allowed a remuneration of 7,000. Deepa agreed to bear dissolution expenses. Actual dissolution expenses 6,000 were paid from the firm’s bank account.
d Dev, a partner, agreed to do the work of dissolution for 7,500. He took away stock of the same amount as his commission. The stock had already been transferred to Realization Account.
e Jeev, a partner, agreed to do the work of dissolution for which he was allowed a commission of 10,000. He agreed to bear the dissolution expenses. Actual dissolution expenses paid by Jeev were 12,000. These expenses were paid by Jeev by drawing cash from the firm.
f A debtor of 8,000 already transferred to Realization Account agreed to pay the realisation expenses of 7,800 in full settlement of his account.

The solution of Question 16 Chapter 7 of +2-A: –

Date	Particulars		L.F.	Debit	Credit
a	Realization A/c	Dr.		12,000
	To Dharam’s Capital A/c				12,000
	(Being Remuneration paid)
b	Realization A/c	Dr.		2,500
	To Jay’s’s Capital A/c				2,500
	(Being Liability discharged )
	Jay’s Capital A/c	Dr.		16,000
	To Vijay’s Capital A/c				16,000
	(Being Expenses borne by Jay, paid by Vijay)
c	Realization A/c	Dr.		7,000
	To Deepa’s Capital A/c				7,000
	( Being Remuneration paid)
	Deepa’s Capital A/c	Dr.		6,000
	To Bank A/c				6,000
	(Being Expenses paid by firm)
d	No Entry

e	Realization A/c	Dr.		10,000
	To Jeev’s Capital A/c				10,000
	(Being Remuneration paid)
	Jeev’s Capital A/c	Dr.		12,000
	To Jeev’s Capital A/c				12,000
	(Being Expenses paid by firm)
f	No Entry

Advertisement-X

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