Question 21 Chapter 7 of +2-A
21. Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2018. Their profit-sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:
| Liabilities | Amount | Assets | Amount | |
| Capital A/cs: | Land | 81,000 | ||
| Shilpa | 80,000 | Stock | 56,760 | |
| Meena | 40,000 | 1,20,000 | Debtors | 18,600 |
| Bank Loan | 20,000 | Nanda’s Capital | 23,000 | |
| Creditors | 37,000 | Cash | 10,840 | |
| Provision For Doubtful Debts | 1,200 | |||
| General Reserve | 12,000 | |||
| 1,90,200 | 1,90,200 |
It is agreed as follows: The stock of the value of 41,660 is taken over by Shilpa for 35,000 and she agreed to discharge bank loan. The remaining stock was sold at 14,000 and debtors amounting to 10,000 realised 8,000. The land is sold for 1,10,000. The remaining debtors realised 50% at their book value. Cost of realisation amounted to 1,200. There was a typewriter not recorded in the books worth of 6,000 which were taken over by one of the Creditors at this value. Prepare Realisation Account, Partners’ Capital Accounts, and Cash Account to close the books of the firm.
The solution of Question 21 Chapter 7 of +2-A: –
| Realization Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Land | 45,000 | Bank Loan | 14,000 | ||
| Stock | 15,000 | Creditors | 37000 | ||
| Debtors | 12,000 | Provision for doubtful debts | 1,200 | ||
| Shilpa’s Capital A/c | 8,000 | Shilpa’s Capital A/c Stock | 35,000 | ||
| Bank A/c: | 24,000 | Cash: | |||
| Creditors | 31000 | Stock | 14000 | ||
| Realization Expenses | 1,200 | 32,200 | Debtors | 12300 | |
| Land | 1,10,000 | 1,36,300 | |||
| Realization Profit | |||||
| Shilpa’s Capital A/c | 10,470 | ||||
| Meena’s Capital A/c | 6,980 | 16,500 | |||
| Nanda’s Capital A/c | 3,490 | 20,940 | |||
| 2,29,500 | 2,29,500 | ||||
| Partners’ Capital Account |
|||||||
| Part. | Shilpa | Meena | Nanda |
Part. |
Shilpa | Meena | Nanda |
| To Balance b/d | 23,000 | By Balance B/d | 80,000 | 40,000 | – | ||
| To Realization Stock A/c | 35,000 | – | – | By General Reserve A/c | 6,000 | 4,000 | 2,000 |
| By Realization | 20,000 | – | – | ||||
| By Bank Loan A/c | 8,750 | – | 14,000 | ||||
| By Realization Profit | 10,470 | 6,980 | 3,490 | ||||
| To Balance c/d | 81,470 | 50,980 | By Cash A/c | 17,510 | |||
| 1,16,470 | 50,980 | 23,000 | 1,16,470 | 44,000 | 23,000 | ||
| Cash Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Balance b/d | 10,840 | Realization Expenses | 32,200 | ||
| Realization A/c | 1,36,300 | Shilpa’s Capital A/c | 81,470 | ||
| Nanda’s Capital A/c | 17,510 | Meena’s Capital A/c | 50,980 | ||
| 1,64,650 | 1,64,650 | ||||
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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
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