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Question 17 Chapter 7 of +2-A
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17. Ramesh and Umesh were partners in firm sharing profits in the ratio of their capitals. On 31st March 2013, their Balance Sheet was as follows:
| Liabilities | Amount | Assets | Amount | |
| Creditors | 1,70,000 | Bank | 1,10,000 | |
| Workmen Compensation Reserve | 2,10,000 | Debtors | 2,40,000 | |
| General Reserve | 2,00,000 | Stock | 1,30,000 | |
| Ramesh’s Current Account | 80,000 | Furniture | 2,00,000 | |
| Capital A/cs | Machinery | 9,30,000 | ||
| Ramesh | 7,00,000 | Umesh’s Current Account | 50,000 | |
| Umesh | 3,00,000 | 10,00,000 | ||
| 16,60,000 | 16,60,000 |
On the above date the firm was dissolved.
a Ramesh took over 50% of stock at 10,000 less than book value. The remaining stock was sold at a loss of 15,000. Debtors were realized at a discount of 5%.
b Furniture was taken over by Umesh for 50,000 and machinery was sold for 4,50,000.
c Creditors were paid in full.
d There was an unrecorded bill for repairs for 1,60,000 which was settled at 1,40,000. Prepare Realization Account.
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The solution of Question 17 Chapter 7 of +2-A: –
| Realization Account | |||||
| Particular | Amount | Particular | Amount | ||
| Sundry Assets- | 13,600 | Creditors | 1,70,000 | ||
| Debtors | 2,40,000 | Ramesh’s Current A/c Stock | 55,000 | ||
| Stock | 1,30,000 | Assets Realized | |||
| Furniture | 2,00,000 | Stock | 50,000 | ||
| Machinery | 9,30,000 | 15,00,000 | Machinery | 1,30,000 | |
| To Cash A/c Liabilities | Debtors | 2,00,000 | 7,28,000 | ||
| Creditors | 1,70,000 | Umesh’s Current A/c Furniture | 50,000 | ||
| Outstanding Bill | 1,40,000 | 3,10,000 | Realization Loss | ||
| Ramesh’s Current A/c | 5,64,900 | ||||
| Umesh’s Current A/c | 2,42,100 | 8,07,000 | |||
| 18,10,000 | 18,10,000 | ||||
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
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