Question 31 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 31 Chapter 7 of +2-A

Question 31 Chapter 7 of +2-A

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 AmountAssets Amount
Sundry Creditors 41,500Cash at Bank 22,500
Bills Payable 20,000Stock 80,000
Bank Loan 40,000Debtor50,000 
General Reserve 50,000Less: Provision for Doubtful Debts2,50047,500
Investments Fluctuation Reserve 40,000Investments 55,000
Capital A/cs:  Premises 1,51,500
X75,000    
Y75,000    
Z15,0001,65,000   
  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: –

 

Realization Account
Particular
AmountParticular Amount
Stock80,000Creditors 41,500
Debtors 50,000Bills Payable 20,000
Investment 55,000Bank Loan 40,000
Premises 1,51,500Investment Fluctuation Reserve 40,000
Bank A/c:-  Provision for Doubtful Debts 2,500
Bill5,000    
Creditors & Bills Payable57,500 Bank  
Expenses15,000 Assets3,25,000 
Bank loan40,0001,17,500Investments56,500 
   Bill2,5003,84,000
Profit transferred to     
X’s Capital A/c29,600    
Y’s Capital A/c29,600    
Z’s Capital A/c14,80074,000   
  5,28,000  5,28,000

 

 

Partners’ Capital Account
Part.XYZ

Part.

XYZ
    By Balance B/d75,00075,00015,000
    By Realization Profit29,60029,60014,800
    By General Reserve20,00020,00010,000
        
        
To Cash A/c1,24,6001,24,60039,800     
 1,24,6001,24,60039,800 1,24,6001,24,60039,800

 

 

Bank Account
Particular
AmountParticular Amount
Balance b/d22,500Realization A/c 1,17,500
Realization A/c 3,84,000X’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

 

 

 

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 31 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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