Question 32 Chapter 7 of +2-A
32. Mrs Rita Chowdhary and Miss Sobha are partners in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st April 2018, the Balance Sheet of the firm was:
| Liabilities | Amount | Assets | Amount | |
| Sundry Creditor | 75,000 | Cash | 6,000 | |
| Bills Payable | 30,000 | Bank | 30,000 | |
| Mr. Chowdhary’s Loan | 15,000 | Stock | 75,000 | |
| Reserve Fund | 24,000 | Book Debts | 66,000 | |
| Mrs. Rita Chowdhary’s Capital | 90,000 | Less: Provision for Doubtful Debts | 6,000 | 60,000 |
| Miss Sobha’s Capital | 30,000 | Plant and Machinery | 45,000 | |
| Land and Building | 48,000 | |||
| 2,64,000 | 2,64,000 |
The firm was dissolved on the date given above. The following transactions took place:
a Mrs. Rita Chowdhary undertook to pay Mr Chowdhary’s Loan and took over 50% of the stock at a discount of 20%.
b Book Debts realised 54,000; the balance of the Stock was sold off at a profit of 30% on cost.
c Sundry Creditors were paid out at a discount of 10%. Bills Payable were paid in full.
d Plant and Machinery realised 75,000. Land and Building 1,20,000.
e Mrs Rita Chowdhary took over the goodwill of the firm at a valuation of 30,000.
f An unrecorded asset of 6,900 was handed over to an unrecorded liability of 6,000 in full settlement. g Realisation expenses were 5,250.
Show Realisation Account, Partners’ Capital Accounts and Bank Account in the books of the firm.
The solution of Question 32 Chapter 7 of +2-A: –
| Realization Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Stock | 75,000 | Provision for Doubtful Debts | 6,000 | ||
| Book Debts | 66,000 | Sundry Creditors | 75,000 | ||
| Plant and Machinery | 45,000 | Bills Payable | 30,000 | ||
| Land and building | 48,000 | Mr. Chowdhary’s Loan | 15,000 | ||
| Bank A/c:- | Mrs. Rita Chowdhary’s Capital A/c | 2,500 | |||
| Sundry Creditors | 67,500 | ||||
| Bills Payable | 30,000 | Stock | 30,000 | ||
| Expenses | 5,250 | 1,02,750 | Goodwill | 30,000 | 60,000 |
| Bank | |||||
| Book Debts | 54,000 | ||||
| Stock | 48,750 | ||||
| Profit transferred to: | Plant and Machinery | 75,000 | |||
| Mrs. Rita Chowdhary’s Capital A/c | 66,000 | Land and Building | 1,20,000 | 2,97,750 | |
| Miss Sobha’s Capital A/c | 66,000 | 74,000 | |||
| 4,83,750 | 4,83,750 | ||||
| Partners’ Capital Account |
|||||
| Part. | Mrs. Rita Chowdhar | Miss Sobha |
Part. |
Mrs. Rita Chowdhar | Miss Sobha |
| To Realization A/c Assets | 60,000 | – | By Balance B/d | 90,000 | 30,000 |
| By Reserve Fund A/c | 12,000 | 12,000 | |||
| By Realization A/c | 15,000 | – | |||
| By Realization profit A/c | 66,000 | 66,000 | |||
| To Cash A/c | 1,23,000 | 1,08,000 | |||
| 1,16,333 | 1,08,000 | 1,16,333 | 1,08,000 | ||
| Bank Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Balance b/d | 30,000 | Realization A/c | 1,02,750 | ||
| Realization A/c | 2,97,750 | Mrs. Rita Chowdhary’s Capital A/c | 1,23,000 | ||
| Cash A/c | 6,000 | Miss Sobha’s Capital A/c | 1,08,000 | ||
| 3,33,750 | 3,33,750 | ||||
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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
