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Question 25 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 25 Chapter 7 of +2-A
Question No.25 Chapter No.7 - T.S. Grewal +2 Book 2019-Solution

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Question 25 Chapter 7 of +2-A

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25. P, Q and R were partners in firm sharing profits and losses in the ratio of 5 : 3: 2. They agreed to dissolve their partnership firm on 31st March 2018. P was deputed to realise the assets and pay the liabilities. He as paid 1,000 as commission for his services. The financial position of the firm was:

Liabilities AmountAssets Amount
Creditors 10,000Stock 5,500
Bills Payable 3,700Investments 15,000
Investments Fluctuation Reserve 4,500Debtors7,100 
   Less: Provision for Doubtful Debtors4506,650
Capital A/cs:  Cash 5,600
P37,550 R’s Capital A/c 8,000
Q15,00052,550Plant and Machinery 30,000
  70,750  70,750

P took over Investments for 12,500. Stock and Debtors realized 11,500. Plant and Machinery were sold to Q for 22,500 for cash. Unrecorded assets realized 1,500. Realization expenses paid amounted to 900. Prepare necessary Ledger Accounts to close the books of the firm.

 

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The solution of Question 25 Chapter  7 of +2-A: –

 

Realization Account
Particular
AmountParticular Amount
Plant and Machinery30,000Creditors 10,000
Stock 5,500Bills Payable 3,700
Investments 15,000Investments Fluctuation Reserve 4,500
Debtors 7,100Provision for Doubtful Debts 450
Cash A/c:  P’s Capital A/c Investments 12,500
Creditors10,000 Cash A/c:  
Bills Payable3,700 Stock and Debtors11,500 
Expenses90014,600Plant and Machinery22,500 
P’s Capital A/c 1,000Unrecorded Assets1,50035,500
   Realization Loss  
   P’s Capital A/c3,275 
   Q’s Capital A/c1,965 
   R’s Capital A/c1,3106,550
  73,200  73,200

 

Partners’ Capital Account
Part.PQR

Part.

PQR
To Balance B/d  8,000By Balance B/d37,55015,000
To Realization loss A/c3,2751,9651,310By Realization A/c1,000
To Realization A/c       
        
To Cash A/c22,77513,035 To Cash A/c  9,310
 38,50015,0009,310 38,50013,0009,310

 

 

Bank Account
Particular
AmountParticular Amount
Balance b/d5,600Realization A/c 14,600
Realization A/c 35,500P’s Capital A/c 22,775
R’s Capital A/c 9,310Q’s Capital A/c 13,035
  50,410  50,410

 

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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)

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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