Question 17 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 17 Chapter 7 of +2-A

Question 17 Chapter 7 of +2-A

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 AmountAssetsAmount
Creditors 1,70,000Bank1,10,000
Workmen Compensation Reserve 2,10,000Debtors2,40,000
General Reserve 2,00,000Stock1,30,000
Ramesh’s Current Account 80,000Furniture2,00,000
Capital A/cs  Machinery9,30,000
Ramesh7,00,000 Umesh’s Current Account50,000
Umesh3,00,00010,00,000  
  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.

 

 

The solution of Question 17 Chapter  7 of +2-A: –

 

Realization Account
Particular
AmountParticular Amount
Sundry Assets-13,600Creditors 1,70,000
Debtors2,40,000 Ramesh’s Current A/c Stock 55,000
Stock1,30,000 Assets Realized  
Furniture2,00,000 Stock50,000 
Machinery9,30,00015,00,000Machinery1,30,000 
To Cash A/c Liabilities  Debtors2,00,0007,28,000
Creditors1,70,000 Umesh’s Current A/c Furniture 50,000
Outstanding Bill1,40,0003,10,000Realization Loss  
   Ramesh’s Current A/c5,64,900 
   Umesh’s Current A/c2,42,1008,07,000
  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)

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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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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