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Question 30 Chapter 7 of +2-A
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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: –
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| 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 | ||||
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| 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 | ||||
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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
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