Question 16 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 16 Chapter 7 of +2-A

Question 16 Chapter 7 of +2-A

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        
           
           

 

 

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 16 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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