Question 24 Chapter 7 of +2-A
Table of Contents
24. Vnod, Vijay and Venkat are partners sharing profits and losses in the ratio of 3 : 2: 1. They decided to dissolve their firm on 31st March 2018, the date on which their Balance Sheet stood as:
| Liabilities | Amount | Assets | Amount | ||
| Creditors | 17,000 | Bank | 3,500 | ||
| Bills Payable | 12,000 | Stock | 19,800 | ||
| Vinod’s Loan | 5,300 | Debtors | 15,000 | ||
| General Reserve | 6,000 | Less: Provision for D. Debts | 1,000 | 14,000 | |
| Capital A/cs: | Investments | 4,000 | |||
| Vinod | 25,000 | Furniture | 10,000 | ||
| Vijay | 11,000 | Machinery | 33,000 | ||
| Venkat | 8,000 | 44,000 | |||
| 84,300 | 84,300 |
The following additional information is given: a The Investments are taken over by Vinod for 5,000
b
| Assets realized as follows: | |
| Stock | 17,500 |
| Debtors | 14,500 |
| Furniture | 6,800 |
| Machinery | 30,300 |
c Expenses on realization amounted to 2,000. Close the books of the firm giving relevant Ledger Accounts.
The solution of Question 24 Chapter 7 of +2-A: –
| Realization Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Stock | 19,800 | Provision for Doubtful Debts | 1,000 | ||
| Debtors | 15,000 | Creditor | 17,000 | ||
| Investments | 4,000 | Bills Payable | 12,000 | ||
| Furniture | 10,000 | Vinod’s Capital A/c | 5,000 | ||
| Machinery | 33,000 | Bank A/c: | |||
| Bank Expenses | 2,000 | Stock | 17,500 | ||
| Bank Creditors | 17,000 | Debtors | 14,500 | ||
| Furniture | 6,800 | ||||
| Machinery | 36,000 | 69,100 | |||
| Realization Loss | |||||
| Vinod | 4,350 | ||||
| Vijay | 2,900 | ||||
| Venkat | 1,450 | 8,700 | |||
| 1,12,800 | 1,12,800 | ||||
| Partners’ Capital Account | |||||||
| Part. | Vinod | Vijay | Venkat |
Part. |
Vinod | Vijay | Venkat |
| To Realization loss | 4,350 | 2,900 | 1,450 | By Balance B/d | 25,000 | 11,000 | 8,000 |
| To Realization A/c | 5,000 | – | – | By General Reserve A/c | 3,000 | 2,000 | 1,000 |
| To Balance c/d | 18,650 | 10,100 | 7,550 | ||||
| 28,000 | 13,000 | 9,000 | 28,000 | 13,000 | 9,000 | ||
| Vinod’s Loan Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Bank A/c | 5,300 | Balance b/d | 5,300 | ||
| 5,300 | 5,300 | ||||
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| Bank Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Balance b/d | 3,500 | Realization A/c Expenses | 2,000 | ||
| Realisation A/c Assets realised | 69,100 | Realization A/c Creditors | 17,000 | ||
| Realization A/c Bills Payable | 12,000 | ||||
| Vinod’s Loan A/c | 5,300 | ||||
| Vinod’s CapitalA/c | 18,650 | ||||
| Vijay’s Capital A/c | 10,100 | ||||
| Venkat’s Capital A/c | 7,550 | ||||
| 72,600 | 72,600 | ||||
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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