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Question 28 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 28 Chapter 7 of +2-A
Question No.28 Chapter No.7 - T.S. Grewal +2 Book 2019-Solution

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Question 28 Chapter 7 of +2-A

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28. A, B and C are in partnership sharing profits and losses in the proportions of 1/2, 1/3 and 1/6 respectively. On 31st March 2018, they decided to dissolve the partnership and the position of the firm on this date is represented by the following Balance Sheet :

Liabilities AmountAssetsAmount
Creditors 40,000Cash at Bank3,000
Loan A/c: A 10,000Stock50,000
Workmen Compensation Reserve 21,000Land and Building57,000
Capital A/cs:  Profit and Loss A/c6,000
A60,000 Advertisement Suspense A/c6,000
B40,000   
C10,0001,10,000  
  1,81,000 1,81,000

During the course of realisation, liability under a suit for damages is settled at 20,000 as against 5,000 only provided for in the books of the firm. Land and Building were sold for 40,000 and the Stock and Sundry Debtors realised 30,000 and 42,000 respectively. The expenses of realisation amounted to 1,200. There was a car in the firm, which was completely written off from the books. Ir was taken over by A for 20,000. He also agreed to pay Outstanding Salary of 20,000 not provided in books. Prepare Realisation Account, Partners’ Capital Accounts and Bank Account in the books of the firm.

 

The solution of Question 28 Chapter  7 of +2-A: –

 

Realization Account
Particular
AmountParticular Amount
Land and Building57,000Creditors 40,000
Stock 50,000   
   Bank A/c  
   Land and building40,000 
Bank A/c  Stock 30,000 
Creditors 40,000 + 15,00055,000 Sundry Debtors42,0001,12,000
Expenses1,20056,200   
      
   Loss transferred to:  
   A’s Capital A/c30,600 
   B’s Capital A/c20,400 
   C’s Capital A/c10,20061,200
  2,13,200  2,13,200

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Partners’ Capital Account 
Part.ABC

Part.

ABC
To Profit and Loss A/c7,5005,0002,500By Balance B/d60,00040,00010,000
To Realization loss A/c30,60020,40010,200By Compensation Reserve A/c10,5007,0003,500
To Suspense A/c Realization3,0002,0001,000    
        
To Cash A/c29,40019,600 By cash A/c  200 
 70,50047,00013,700 70,50047,00013,700

 

A’s Loan Account
Particular
AmountParticular Amount
Bank A/c10,000Balance b/d 10,000
      
      
      
  10,000  10,000

 

Bank Account
Particular
AmountParticular Amount
Balance b/d3,000A’s Loan A/c 10,000
Realization A/c 1,12,000A’s Capital A/c 56,200
C’s Capital A/c 200A’s Capital A/c 29,400
   B’s Capital A/c 19,600
  1,15,200  1,15,200

 

 

 

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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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