Question 23 Chapter 7 of +2-A
Table of Contents
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 | Amount | Assets | Amount | ||
| Bills Payable | 40,000 | Cash at Bank | 40,000 | ||
| Loan from Bank | 30,000 | Stock | 19,000 | ||
| Reserve Fund | 9,000 | Sundry Debtors | 42,000 | ||
| Capital A/cs: | Less: Provision for D. Debts | 2,000 | 40,000 | ||
| P | 44,000 | Building | 40,000 | ||
| Q | 36,000 | Plant and Machinery | 40,000 | ||
| R | 20,000 | 1,00,000 | |||
| 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 |
Amount | Particular | Amount | ||
| Building | 40,000 | Provision for Doubtful Debts | 2,000 | ||
| Plant and machinery | 40,000 | Bills Payable | 40,000 | ||
| Stock | 19,000 | Loan from Bank | 30,000 | ||
| Sundry Debtors | 42,000 | Bank A/c: | |||
| Bank A/c | Stock | 23,400 | |||
| Bills Payable | 32,000 | 10,000 | Debtors | 21,000 | |
| Outstanding Bill | 800 | Building | 36,000 | ||
| Expenses | 1,250 | Plant and Machinery | 36,000 | 1,16,400 | |
| 30,000 | 38,600 | Realization Loss | |||
| P’s Capital A/c | 9,250 | ||||
| Q’s Capital A/c | 5,550 | ||||
| R’s Capital A/c | 1,850 | 16,650 | |||
| 2,05,050 | 2,05,050 | ||||
| Partners’ Capital Account |
|||||||
| Part. | P | Q | R |
Part. |
P | Q | R |
| To Realization loss | 9,250 | 5,550 | 1,850 | By Balance B/d | 44,000 | 36,000 | 20,000 |
| By Reserve Fund A/c | 5,000 | 3,000 | 1,000 | ||||
| To Balance c/d | 39,750 | 33,450 | 19,150 | ||||
| 49,000 | 39,000 | 21,000 | 49,000 | 39,000 | 21,000 | ||
| Bank Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Balance b/d | 40,000 | Realization A/c | 64,050 | ||
| Realization A/c | 1,16,400 | P’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 | ||||
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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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