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   Amount Assets Amount
Sundry Creditors   20,000 Bank 7,500
Bills Payable   25,500 Sundry Debtors 58,000
Babu’s Loan   30,000 Stock 39,500
Capital A/cs:     Machinery 48,000
Ashok 70,000   Investments 42,000
Babu 55,000   Freehold Property 50,500
Chetan  27,000 1,52,000    
Capital A/cs:         
Ashok 10,000      
Babu 5,000      
Chetan 3,000 18,000    
    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
Amount Particular Amount
Sundry Debtors 58,000 Sundry Creditors   20,000
Stock   39,500 Bills Payable   25,500
Machinery   48,000 Ashok’s Current A/c Investment   40,000
Investment   42,000 Bills Payable   45,000
Freehold property   50,500 Chetan’s Current A/c Freehold property   55,000
Bank A/c          
Sundry Creditors 18,600   Bank    
Bills Payable 25,500   Sundry Debtors 56,500  
Expenses 3,000 47,100 Stock 36,500  
      Unrecorded Computer 9,000 1,02,000
Profit transferred to          
Ashok’s Current A/c 1,200        
Babu’s Current A/c 800        
Chetan’s Current A/c 400 2,400      
    2,87,500     2,87,500

 

Partners’ current Account
Part. Ashok Babu Chetan

Part.

Ashok Babu Chetan
To Profit and Loss A/c 40,000 45,000 55,000 By Balance B/d 10,000 5,000 3,000
        By Realization Profit 1,200 800 400
        By Ashok’s Capital A/c 28,800
        By Babu’s Capital A/c 39,200
        By Chetan’s Capital A/c 51,600
               
  40,000 45,000 55,000   40,000 45,000 55,000

 

Partners’ CapitalAccount
Part. Ashok Babu Chetan

Part.

Ashok Babu Chetan
By Ashok’s Current A/c 28,800     By Balance B/d 70,000 55,000 27,000
By Babu’s Current A/c   39200   By Bank A/c 24,600
By Chetan’s Current A/c     51600        
               
               
To Cash A/c 41,200 15,800          
  70,000 55,000 51,600    70,000 55,000 51,600 

 

 

 

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

 

Bank Account
Particular
Amount Particular Amount
Balance b/d 7,500 Realization A/c   47,100
Realization A/c   102,000 Babu’s Loan   30,000
Chetan’s Capital A/c   24,600 Ashok’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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