Question 23 Chapter 7 of +2-A

Question 23 Chapter 7 of +2-A

23. Balance Sheet of P, Q and R as at 31st March, 2018, who were sharing profits in the ratio of 5 : 3 : 1 , was

Liabilities AmountAssets Amount
Bills Payable 40,000Cash at Bank 40,000
Loan from Bank 30,000Stock 19,000
Reserve Fund 9,000Sundry Debtors42,000 
Capital A/cs:  Less: Provision for D. Debts2,00040,000
P44,000 Building 40,000
Q36,000 Plant and Machinery 40,000
R20,0001,00,000   
  1,79,000  1,79,000

The partners dissolved the business. Assets realised—Stock 23,400; Debtors 50%; Fixed Assets 10% less than their book value . Bills Payable were settled for 32,000. There was an Outstanding Bill of Electricity 800 which was paid off. Realisation expenses 1,250 were also paid. Prepare Realisation Account , Partner’s Capital Accounts and Bank Account .

 

The solution of Question 23 Chapter  7 of +2-A: –

 

Realization Account
Particular
AmountParticular Amount
Building40,000Provision for Doubtful Debts 2,000
Plant and machinery 40,000Bills Payable 40,000
Stock 19,000Loan from Bank 30,000
Sundry Debtors 42,000Bank A/c:  
Bank A/c  Stock23,400 
Bills Payable32,00010,000Debtors21,000 
Outstanding Bill800 Building36,000 
Expenses1,250 Plant and Machinery36,0001,16,400
 30,00038,600Realization Loss  
   P’s Capital A/c9,250 
   Q’s Capital A/c5,550 
   R’s Capital A/c1,85016,650
  2,05,050  2,05,050

 

Partners’ Capital Account
 
Part.PQR

Part.

PQR
To Realization loss9,2505,5501,850By Balance B/d44,00036,00020,000
    By Reserve Fund A/c5,0003,0001,000
        
        
To Balance c/d 39,75033,45019,150    
 49,00039,00021,000 49,00039,00021,000

 

 

Bank Account
Particular
AmountParticular Amount
Balance b/d40,000Realization A/c 64,050
Realization A/c 1,16,400P’s Capital A/c 39,750
   Q’s Capital A/c 33,450
   R’s Loan A/c 19,150
  1,54,400  1,54,400

 

 

 

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 23 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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