Question 21 Chapter 7 of +2-A

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 AmountAssetsAmount
Capital A/cs:  Land81,000
Shilpa80,000 Stock56,760
Meena40,0001,20,000Debtors18,600
Bank Loan 20,000Nanda’s Capital23,000
Creditors 37,000Cash10,840
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
AmountParticular Amount
Land45,000Bank Loan 14,000
Stock 15,000Creditors 37000
Debtors 12,000Provision for doubtful debts 1,200
Shilpa’s Capital A/c 8,000Shilpa’s Capital A/c Stock 35,000
Bank A/c: 24,000Cash:  
Creditors31000 Stock14000 
Realization Expenses1,20032,200Debtors12300 
   Land1,10,0001,36,300
Realization Profit     
Shilpa’s Capital A/c10,470    
Meena’s Capital A/c6,980   16,500
Nanda’s Capital A/c3,49020,940   
  2,29,500  2,29,500

 

Partners’ Capital Account
 
Part.ShilpaMeenaNanda

Part.

ShilpaMeenaNanda
To Balance b/d  23,000By Balance B/d80,00040,000
To Realization Stock A/c35,000By General Reserve A/c6,0004,0002,000
    By Realization20,000
    By Bank Loan A/c8,75014,000
    By Realization Profit10,4706,9803,490
To Balance c/d 81,47050,980 By Cash A/c  17,510
 1,16,47050,98023,000 1,16,47044,00023,000

 

Cash Account
Particular
AmountParticular Amount
Balance b/d10,840Realization Expenses 32,200
Realization A/c 1,36,300Shilpa’s Capital A/c 81,470
Nanda’s Capital A/c 17,510Meena’s Capital A/c 50,980
      
  1,64,650  1,64,650

 

 

 

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 21 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

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