Question 18 Chapter 7 of +2-A
Table of Contents
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.
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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