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Question 27 Chapter 7 of +2-A
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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: –
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| 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 | ||||
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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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
