Question 27 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 27 Chapter 7 of +2-A

Question 27 Chapter 7 of +2-A

27. A, B and C were equal partners. On 31st March 2018, their Balance Sheet stood as:

Liabilities   Amount Assets Amount
Creditors   50,400 Cash 3,700
Reserve   12,000 Stock 20,100
Capital A/cs:     Debtors 62,600
A 30,000   Investments 16,000
B 25,000   Furniture 6,500
C 15,000 70,000 Building 23,500
    1,32,400     400

The firm was dissolved on the above date on the following terms:
a For the purpose of dissolution, Investments were valued at 18,000 and A took over the Investments at this value.
b Fixed Assets realised 29,700 whereas Stock and Debtors realised 80,000.
c Expenses of realisation amounted to 1,300.
d Creditors allowed a discount of 800.
e One Bill receivable for 1,500 under discount was dishonoured as the acceptor had become insolvent and was unable to pay anything and hence the bill had to be met by the firm.
Prepare Realisation Account, Partner’s Capital Accounts and Cash Account showing how the accounts would finally be settled among the partners.

 

The solution of Question 27 Chapter  7 of +2-A: –

 

Realization Account
Particular
Amount Particular Amount
Stock 20,100 Creditors   50,400
Debtors   62,600 A’s Capital A/c Investments   18,000
Investments   16,000      
Furniture   6,500 Cash A/c:    
Building   23,500 Furniture and Building 29,700  
Cash A/c:     Stock and Debtors 80,000 1,09,700
Expenses 1,300        
Creditors 49,600        
Bills 1,500 52,400      
      Loss transferred to:    
      A’s Capital A/c 1,000  
      B’s Capital A/c 1,000  
      C’s Capital A/c 1,000 3,000
    1,81,100     1,81,100

 

Partners’ Capital Account  
Part. A B C

Part.

A B C
To Realization A/c Investment 18,000 By Balance B/d 30,000 25,000 15,000
To Realization loss A/c 1,000 1,000 1,000 By Reserve A/c 4,000 4,000 4,000
To Realization A/c              
               
To Cash A/c
15,000 28,000 18,000        
  34,000 29,000 19,000   34,000 29,000 19,000

 

 

Bank Account
Particular
Amount Particular Amount
Balance b/d 3,700 Realization A/c   52,400
Realization A/c   1,09,700 A’s Capital A/c   15,000
      B’s Capital A/c   28,000
      C’s Capital A/c   18,000
    1,13,400     1,13,400

 

 

 

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

 

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2 Book 1 min - Question 27 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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