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Question 20 Chapter 7 of +2-A
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20. Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March 2018 at which date their Balance Sheet stood as:
| Liabilities | Amount | Assets | Amount | |
| Capital A/cs: | Building | 45,000 | ||
| Bale | 50,000 | Machinery | 15,000 | |
| Yale | 40,000 | 90,000 | Furniture | 12,000 |
| General Reserve | 8,000 | Debtors | 8,000 | |
| Bale’s Loan A/c | 3,000 | Stock | 24,000 | |
| Creditors | 14,000 | Bank | 11,000 | |
| 1,15,000 | 1,15,000 |
a The assets realized were: Stock 22,000; Debtors 7,500; Machinery 16,000; Building 35,000.
b Yale took over the Furniture at 9,000.
c Bale agreed to accept 2,500 in full settlement of his Loan Account .
d Dissolution Expenses amounted to 2,500. Prepare the:
i Realization Account;
ii Capital Accounts of Partners;
iii Bale’s Loan Account;
iv Bank Account
The solution of Question 20 Chapter 7 of +2-A: –
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| Realization Account | |||||
| Particular | Amount | Particular | Amount | ||
| Building | 45,000 | Sundry Creditors | 14,000 | ||
| Machinery | 15,000 | Bank A/c: | |||
| Furniture | 12,000 | Stock | 22,000 | ||
| Debtors | 8,000 | Debtors | 7,500 | ||
| Stock | 24,000 | Machinery | 16,000 | ||
| Bank A/c: | Building | 35,000 | 80,500 | ||
| Creditors | 14,000 | Bale’s Loan | 500 | ||
| Expenses | 2,500 | 16,500 | Yale’s Capital A/c Furniture | 9,000 | |
| Realization Loss | |||||
| Bale’s Capital A/c | 8,250 | ||||
| Yale’s Capital A/c | 8,250 | 16,500 | |||
| 1,20,500 | 1,20,500 | ||||
| Partners’ Capital Account | |||||
| Part. | Bale | Yale | Part. | Bale | Yale |
| To Realization loss | 8,250 | 8,250 | By Balance B/d | 50,000 | 40,000 |
| To Realization A/c | – | 9,000 | By General Reserve Old Ratio | 4,000 | 4,000 |
| – | |||||
| To Balance c/d | 45,750 | 26,750 | |||
| 54,000 | 44,000 | 54,000 | 44,000 | ||
| Bale’s Loan Account | |||||
| Particular | Amount | Particular | Amount | ||
| Bank A/c | 2,500 | Balance b/d | 3,000 | ||
| Realization A/c | 500 | ||||
| 3,000 | 3,000 | ||||
| Bank Account | |||||
| Particular | Amount | Particular | Amount | ||
| Balance b/d | 11,000 | Bale’s Loan | 2,500 | ||
| Realization A/c | 80,500 | Realization A/c | 16,500 | ||
| Bale’s Capital A/c | 45,750 | ||||
| Yale’s Capital A/c | 26,750 | ||||
| 91,500 | 91,500 | ||||
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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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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