Question 22 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 22 Chapter 7 of +2-A
Question No.22 Chapter No.7 - T.S. Grewal +2 Book 2019-Solution


Question 22 Chapter 7 of +2-A


22. A and B are partners in a firm sharing profits and losses in the ratio of 3: 2. On 31st March 2018, their Balance Sheet was as follows:

Liabilities AmountAssetsAmount
Creditors 38,000Cash at Bank11,500
Mrs. A’s Loan 10,000Stock6,000
B’s Loan 15,000Debtors19,000
Reserve 5,000Furniture4,000
A’s Capital10,000 Plant28,000
B’s Capital8,00018,000Investments10,000
   Profit and Loss A/c7,500
  86,000 86,000

The firm was dissolved on 31st March 2018 and both the partners agreed to the following :
a A took Investments at an agreed value of 8,000. He also agreed to settle Mrs. A’s Loan.
b Other assets realised as : Stock — 5,000; Debtors— 18,500; Furniture— 4,500; Plant— 25,000.
c Expenses of realisation came to 1,600.
d Creditors agreed to accept 37,000 in full settlement of their claims.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account


The solution of Question 22 Chapter  7 of +2-A: –



Realization Account
AmountParticular Amount
Stock6,000Creditors 38,000
Debtors 19,000Mrs. A’s Loan 10,000
Furniture 4,000A’s Capital A/c Investments 8,000
Plant 28,000Shilpa’s Capital A/c Stock 35,000
Investments 10,000Stock5,000 
A’s Capital A/c Mrs. A’s loan 10,000Debtors18,500 
Bank A/c:  Furniture4,500 
Expenses1,600 Plant25,00053,000
Creditors1,20038,600Realization Loss  
   A’s Capital A/c3,960 
   B’s Capital A/c2,6406,600
  1,15,600  1,15,600


Partners’ Capital Account


To Realization loss3,9602,640By Balance B/d10,0008,000
To Realization A/c8,000By Reserve A/c3,0002,000
To Profit and Loss A/c4,5003,000By Realization A/c10,000
To Balance c/d 6,5404,360   
 23,00010,000 23,00010,000


B’s Loan Account
AmountParticular Amount
Bank A/c15,000Balance b/d 15,000
  15,000  15,000


Bank Account
AmountParticular Amount
Balance b/d11,500Realization A/c 38,600
Realization A/c 53,000A’s Capital A/c 6,540
   B’s Capital A/c 4,360
   B’s Loan A/c 15,000
  64,500  64,500





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


Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms



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