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

Question 22 Chapter 7 of +2-A

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   Amount Assets Amount
Creditors   38,000 Cash at Bank 11,500
Mrs. A’s Loan   10,000 Stock 6,000
B’s Loan   15,000 Debtors 19,000
Reserve   5,000 Furniture 4,000
A’s Capital 10,000   Plant 28,000
B’s Capital 8,000 18,000 Investments 10,000
      Profit and Loss A/c 7,500
    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
Particular
Amount Particular Amount
Stock 6,000 Creditors   38,000
Debtors   19,000 Mrs. A’s Loan   10,000
Furniture   4,000 A’s Capital A/c Investments   8,000
Plant   28,000 Shilpa’s Capital A/c Stock   35,000
Investments   10,000 Stock 5,000  
A’s Capital A/c Mrs. A’s loan   10,000 Debtors 18,500  
Bank A/c:     Furniture 4,500  
Expenses 1,600   Plant 25,000 53,000
Creditors 1,200 38,600 Realization Loss    
      A’s Capital A/c 3,960  
      B’s Capital A/c 2,640 6,600
    1,15,600     1,15,600

 

Partners’ Capital Account
Part. A B

Part.

A B
To Realization loss 3,960 2,640 By Balance B/d 10,000 8,000
To Realization A/c 8,000 By Reserve A/c 3,000 2,000
To Profit and Loss A/c 4,500 3,000 By Realization A/c 10,000
           
To Balance c/d 6,540 4,360      
  23,000 10,000   23,000 10,000

 

B’s Loan Account
Particular
Amount Particular Amount
Bank A/c 15,000 Balance b/d   15,000
           
    15,000     15,000

 

Bank Account
Particular
Amount Particular Amount
Balance b/d 11,500 Realization A/c   38,600
Realization A/c   53,000 A’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

 

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2 Book 1 min - Question 22 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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