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 AmountAssetsAmount
Capital A/cs:  Building45,000
Bale50,000 Machinery15,000
Yale40,00090,000Furniture12,000
General Reserve 8,000Debtors8,000
Bale’s Loan A/c 3,000Stock24,000
Creditors 14,000Bank11,000
  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
AmountParticular Amount
Building45,000Sundry Creditors 14,000
Machinery 15,000Bank A/c:  
Furniture 12,000Stock22,000 
Debtors 8,000Debtors7,500 
Stock 24,000Machinery16,000 
Bank A/c:  Building35,00080,500
Creditors14,000 Bale’s Loan 500
Expenses2,50016,500Yale’s Capital A/c Furniture 9,000
   Realization Loss  
   Bale’s Capital A/c8,250 
   Yale’s Capital A/c8,25016,500
  1,20,500  1,20,500

 

Partners’ Capital Account
Part.BaleYale

Part.

BaleYale
To Realization loss8,2508,250By Balance B/d50,00040,000
To Realization A/c9,000By General Reserve Old Ratio4,0004,000
     
      
To Balance c/d 45,75026,750   
 54,00044,000 54,00044,000

 

Bale’s Loan Account
Particular
AmountParticular Amount
Bank A/c2,500Balance b/d 3,000
Realization A/c 500   
  3,000  3,000

 

Bank Account
Particular
AmountParticular Amount
Balance b/d11,000Bale’s Loan 2,500
Realization A/c 80,500Realization 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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