Question 18 Chapter 7 of +2-A - T.S. Grewal 12 Class Part

Question 18 Chapter 7 of +2-A

Table of Contents

The solution of Question 18 Chapter 7 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

18. Balance Sheet of a firm as at 31st March 2018, when it was decided to dissolve the same, was:

Liabilities		Amount	Assets	Amount
Sundry Creditors		14,000	Cash at Bank	640
Reserve for Contingencies		500	Stock	4,740
Capital A/cs:			Debtors	5,540
X	4,000		Machinery	10,580
Y	3,000
		21,500		21,500

19,500 were realized from all assets except Cash at Bank . The cost of winding up came to 440. X and Y shared profits in the ratio of 2 : 1 respectively. Prepare Realization Account and Capital Accounts of Partners.

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The solution of Question 18 Chapter 7 of +2-A: –

Realization Account
Particular		Amount	Particular		Amount
Machinery		10,580	Sundry Creditors		14,000
Stock		4,740	Bank Assets Realized		19,500
Debtors		5,540
Bank A/c:
Creditors	14,000
Expenses	440	14,440

			Realization Loss
			X’s Capital A/c	1,200
			Y’s Capital A/c	600	1,800
		35,300			35,300

Partners’ Capital Account
Part.	A	B	Part.	A	B
To Realization loss	3,960	2,640	By Balance B/d	10,000	8,000
To Realization A/c	8,000	–	By Reserve A/c	3,000	2,000
To Profit & Loss A/c	4,500	3,000	By Realization A/c	10,000	–

To Balance c/d	6,540	4,360
	23,000	10,000		23,000	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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