Question 19 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 19 Chapter 7 of +2-A

Question 19 Chapter 7 of +2-A

19. Achal and Vishal were partners in firm sharing profits in the ratio of 3: 5 . On 31st March 2018 their Balance Sheet was as follows:

Liabilities AmountAssetsAmount
Capital A/cs:  Land and Building4,00,000
Acha3,00,000 Machinery3,00,000
Vichal5,00,0008,00,000Debtors2,22,000
Creditors A/c 1,79,000Cash at Bank78,000
Employees’ Provident Fund A/c 21,000  
     
  10,00,000 10,00,000


The firm was dissolved on 1st April 2018 and the Assets and Liabilities were settled as follows :
a Land and Building b realised 4,30,000.
b Debtors realised 2,25,000 with interest and 1,000 were recovered for Bad Debts written off last year.
c There was an Unrecorded Investment which was sold for 25,000.
d Vichal took over Machinery at 2,80,000 for cash. e 50% of the Creditors were paid 4,000 less in full settlement and the remaining Creditors were paid the full amount.
Pass necessary journal entries for dissolution of the firm

 

The solution of Question 19 Chapter 7 of +2-A: –

 

DateParticulars
L.F.DebitCredit
 Realization A/cDr. 9,22,000 
 To Land & Building A/c   4,00,000
 To Machinery A/c   3,00,000
 To Debtors A/c   2,22,000
 (Being assets transferred)   
 Creditors A/cDr. 1,79,000 
 Employees’ Provident Fund A/cDr. 21,000 
 To Realization A/c   2,00,000
 (Being liabilities transferred)    
 Bank A/cDr. 4,30,000 
 To Realization A/c   4,30,000
 (Being Land & Building realized)    
 Bank A/c 2, 25, 000 +1, 000Dr. 2,26,000 
 To Realization A/c   2,26,000
 (Being Debtors realized along −with Bad −debts recovered)    
 Bank A/cDr. 25,000 
 To Realization A/c   25,000
 (Being Unrecorded Investments sold)    
 Bank A/cDr. 2,80,000 
 To Realization A/c   2,80,000
 (Being Machinery took over by Vichal for Cash)    
 Realization A/cDr. 1,96,000 
 To Bank A/c 85, 500 +89, 500 +21, 000   1,96,000
 (Being Remuneration paid)    
 Realization A/cDr. 43,000 
 To Achal’s Capital A/c   16,125
 To Vichal’s Capital A/c   26,875
 (Being profits on realization transferred)    
 Achal’s Capital A/cDr. 3,16,125 
 Vichal’s Capital A/cDr. 5,26,875 
 To Bank A/c   8,43,000
 (Being Partners paid off)    

 

 

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 19 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

Leave a Reply