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   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.

 

 

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)

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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