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Question 31 Chapter 7 of +2-A
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31. X, Y and Z carrying on business as merchants and sharing profits and losses in the ratio of 2 : 2: 1, dissolved their firm as at 31st March 2018 on which date their Balance Sheet was as follows:
| Liabilities | Amount | Assets | Amount | ||
| Sundry Creditors | 41,500 | Cash at Bank | 22,500 | ||
| Bills Payable | 20,000 | Stock | 80,000 | ||
| Bank Loan | 40,000 | Debtor | 50,000 | ||
| General Reserve | 50,000 | Less: Provision for Doubtful Debts | 2,500 | 47,500 | |
| Investments Fluctuation Reserve | 40,000 | Investments | 55,000 | ||
| Capital A/cs: | Premises | 1,51,500 | |||
| X | 75,000 | ||||
| Y | 75,000 | ||||
| Z | 15,000 | 1,65,000 | |||
| 3,56,500 | 3,56,500 |
A bill for 5,000 received from Mohan discounted from the bank is not met on maturity. The assets except for Cash at Bank and Investments were sold to a company which paid 3,25,000 in cash. The Investments were sold and 56,500 were received. Mohan proved insolvent and a dividend of 50% was received from his estate. Sundry Creditors including Bills Payable were paid 57,500 in full settlement. Realisation Expenses amounted to 15,000. Prepare Realisation Account, Partners’ Capital Accounts and Bank Account.
The solution of Question 31 Chapter 7 of +2-A: –
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| Realization Account | |||||
| Particular | Amount | Particular | Amount | ||
| Stock | 80,000 | Creditors | 41,500 | ||
| Debtors | 50,000 | Bills Payable | 20,000 | ||
| Investment | 55,000 | Bank Loan | 40,000 | ||
| Premises | 1,51,500 | Investment Fluctuation Reserve | 40,000 | ||
| Bank A/c:- | Provision for Doubtful Debts | 2,500 | |||
| Bill | 5,000 | ||||
| Creditors & Bills Payable | 57,500 | Bank | |||
| Expenses | 15,000 | Assets | 3,25,000 | ||
| Bank loan | 40,000 | 1,17,500 | Investments | 56,500 | |
| Bill | 2,500 | 3,84,000 | |||
| Profit transferred to | |||||
| X’s Capital A/c | 29,600 | ||||
| Y’s Capital A/c | 29,600 | ||||
| Z’s Capital A/c | 14,800 | 74,000 | |||
| 5,28,000 | 5,28,000 | ||||
| Partners’ Capital Account | |||||||
| Part. | X | Y | Z | Part. | X | Y | Z |
| By Balance B/d | 75,000 | 75,000 | 15,000 | ||||
| By Realization Profit | 29,600 | 29,600 | 14,800 | ||||
| By General Reserve | 20,000 | 20,000 | 10,000 | ||||
| To Cash A/c | 1,24,600 | 1,24,600 | 39,800 | ||||
| 1,24,600 | 1,24,600 | 39,800 | 1,24,600 | 1,24,600 | 39,800 | ||
| Bank Account | |||||
| Particular | Amount | Particular | Amount | ||
| Balance b/d | 22,500 | Realization A/c | 1,17,500 | ||
| Realization A/c | 3,84,000 | X’s Capital A/c | 1,24,600 | ||
| Y’s Capital A/c | 1,24,600 | ||||
| Z’s Capital A/c | 39,800 | ||||
| 4,06,500 | 4,06,500 | ||||
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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
