Question 18 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 18 Chapter 7 of +2-A

Question 18 Chapter 7 of +2-A

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)

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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2 Book 1 min - Question 18 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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