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 AmountAssetsAmount
Sundry Creditors 14,000Cash at Bank 640
Reserve for Contingencies 500Stock4,740
Capital A/cs:  Debtors5,540
X4,000 Machinery10,580
Y3,000   
  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
AmountParticular Amount
Machinery10,580Sundry Creditors 14,000
Stock 4,740Bank Assets Realized 19,500
Debtors 5,540   
Bank A/c:     
Creditors14,000    
Expenses44014,440   
      
   Realization Loss  
   X’s Capital A/c1,200 
   Y’s Capital A/c6001,800
  35,300  35,300

 

Partners’ Capital Account
Part.AB

Part.

AB
To Realization loss3,9602,640By Balance B/d10,0008,000
To Realization A/c8,000By Reserve A/c3,0002,000
To Profit & Loss A/c4,5003,000By Realization A/c10,000
      
To Balance c/d 6,5404,360   
 23,00010,000 23,00010,000

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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