Question 16 Chapter 7 of +2- Part

Question 16 Chapter 7 of +2-Part-1

16. (Journal/Realisation A/c/Capital A/c/Cash A/c) Thapa and Sudarshan are partners sharing profits and losses as to 3/5 and 2/5. Their Balance sheet on 31st March, 2018 was as follows :

Liabilities Rs.Assets Rs. 
Creditors528Cash 363
Reserve for contingencies 500Investments 2,080
Bank loan 1,000Debtors 2,960
Capitals  Stock 1,875
Thapa 6,000Furniture 2,750
Sudarshan 2,000  
 10,028 10,028

They dissolved the firm on this date and assets with the exception of cash and investments were sold for Rs. 6,900. The investments were taken over by Sudarshan at Rs. 2,200 and he agreed to pay the bank loan. The realisation expenses were Rs. 110 and the creditors were paid Rs. 503 in full settlement.
Give various ledger accounts to show the dissolution of the firm. Also give journal entries .

The solution of Question 16 Chapter 7 of +2 Part-1: –

Revaluation A/c
To investments A/c 2,080By creditors 528
To Debtors 2,960By Bank Loan A/c 1,000
To Stock A/c 1,875By cash A/c – Sale of assets 6,900
To Furniture A/c 2,750By Sudarshan’s capital 2,200
To Sudarshan’s capital     
Bank loan 1,000   
To cash A/c     
Creditors 506   
Expenses 110   
   By capital A/c – loss :  
   Thapa 390 
   Sudarshan 260650
  1,96,000  1,96,000
Partners’ Capital Account 
ParticularsThapa Sudarshan ParticularsThapa Sudarshan
To realisation A/c 2,200By Balance b/d6,0002,000
To realisation A/c390260By Reserve300200
   By Realisation A/c 1,000
To Cash A/c5,910740   
 6,3003,200 6,3003,200
Cash Sheet
To balance b/d 363By Realisation A/c  
To Realisation A/c 6,900Creditors 503
   Expenses 110
   By Thapa’s capital A/c 5,910
   By Sudarshan’s capital A/c 740
  7,263  7,263

Comment if you have any questions
Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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

2 Book 1 min - Question 16 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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