Question 20 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 20 Chapter 7 of +2-A

Question 20 Chapter 7 of +2-A

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: –

 

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

 

 

 

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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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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