Question 30 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 30 Chapter 7 of +2-A

Question 30 Chapter 7 of +2-A

30. Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the 31st March 2018 when the Balance Sheet of the firm as under:

Liabilities AmountAssetsAmount
Sundry Creditors 20,000Bank7,500
Bills Payable 25,500Sundry Debtors58,000
Babu’s Loan 30,000Stock39,500
Capital A/cs:  Machinery48,000
Ashok70,000 Investments42,000
Babu55,000 Freehold Property50,500
Chetan 27,0001,52,000  
Capital A/cs:     
Ashok10,000   
Babu5,000   
Chetan3,00018,000  
  2,45,00 2,45,00

The Machinery was taken over by Babu for 45,000, Ashok took over the Investments for 40,000 and Freehold property took over by Chetan at 55,000. The remaining Assets realized as follows: Sundry Debtors 56,500 and Stock 36,500. Sundry Creditors were settled at a discount of 7%. An office computer, not shown in the books of accounts realized 9,000. Realization expenses amounted to 3,000. Prepare Realization Account, Partners’ Capital Accounts and Bank Account.

 

The solution of Question 30 Chapter  7 of +2-A: –

 

Realization Account
Particular
AmountParticular Amount
Sundry Debtors58,000Sundry Creditors 20,000
Stock 39,500Bills Payable 25,500
Machinery 48,000Ashok’s Current A/c Investment 40,000
Investment 42,000Bills Payable 45,000
Freehold property 50,500Chetan’s Current A/c Freehold property 55,000
Bank A/c     
Sundry Creditors18,600 Bank  
Bills Payable25,500 Sundry Debtors56,500 
Expenses3,00047,100Stock36,500 
   Unrecorded Computer9,0001,02,000
Profit transferred to     
Ashok’s Current A/c1,200    
Babu’s Current A/c800    
Chetan’s Current A/c4002,400   
  2,87,500  2,87,500

 

Partners’ current Account
Part.AshokBabuChetan

Part.

AshokBabuChetan
To Profit and Loss A/c40,00045,00055,000By Balance B/d10,0005,0003,000
    By Realization Profit1,200800400
    By Ashok’s Capital A/c28,800
    By Babu’s Capital A/c39,200
    By Chetan’s Capital A/c51,600
        
 40,00045,00055,000 40,00045,00055,000

 

Partners’ CapitalAccount
Part.AshokBabuChetan

Part.

AshokBabuChetan
By Ashok’s Current A/c28,800  By Balance B/d70,00055,00027,000
By Babu’s Current A/c 39200 By Bank A/c24,600
By Chetan’s Current A/c  51600    
        
        
To Cash A/c41,20015,800     
 70,00055,00051,600  70,00055,00051,600 

 

 

 

A’s Loan Account
Particular
AmountParticular Amount
Bank A/c30,000Balance b/d 30,000
      
      
      
  30,000  30,000

 

Bank Account
Particular
AmountParticular Amount
Balance b/d7,500Realization A/c 47,100
Realization A/c 102,000Babu’s Loan 30,000
Chetan’s Capital A/c 24,600Ashok’s Capital A/c 41,200
   Babu’s Capital A/c 15,800
  1,34,100  1,34,100

 

 

 

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 30 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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