Question 32 Chapter 7 of +2-A

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:

LiabilitiesAmountAssets Amount
Sundry Creditor75,000Cash 6,000
Bills Payable 30,000Bank 30,000
Mr. Chowdhary’s Loan15,000Stock 75,000
Reserve Fund24,000Book Debts66,000 
Mrs. Rita Chowdhary’s Capital90,000Less: Provision for Doubtful Debts6,00060,000
Miss Sobha’s Capital30,000Plant 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
AmountParticular Amount
Stock75,000Provision for Doubtful Debts 6,000
Book Debts 66,000Sundry Creditors 75,000
Plant and Machinery 45,000Bills Payable 30,000
Land and building 48,000Mr. Chowdhary’s Loan 15,000
Bank A/c:-  Mrs. Rita Chowdhary’s Capital A/c 2,500
Sundry Creditors67,500    
Bills Payable30,000 Stock30,000 
Expenses5,2501,02,750Goodwill30,00060,000
   Bank  
   Book Debts54,000 
   Stock48,750 
Profit transferred to:  Plant and Machinery75,000 
Mrs. Rita Chowdhary’s Capital A/c66,000 Land and Building1,20,0002,97,750
Miss Sobha’s Capital A/c66,00074,000   
  4,83,750  4,83,750

 

 

Partners’ Capital Account
Part.Mrs. Rita ChowdharMiss Sobha

Part.

Mrs. Rita ChowdharMiss Sobha
To Realization A/c Assets60,000By Balance B/d90,00030,000
   By Reserve Fund A/c12,00012,000
   By Realization A/c15,000
   By Realization profit A/c66,00066,000
      
To Cash A/c1,23,0001,08,000   
 1,16,3331,08,000 1,16,3331,08,000

 

 

Bank Account
Particular
AmountParticular Amount
Balance b/d30,000Realization A/c 1,02,750
Realization A/c 2,97,750Mrs. Rita Chowdhary’s Capital A/c 1,23,000
Cash A/c 6,000Miss Sobha’s Capital A/c 1,08,000
      
  3,33,750  3,33,750

 

 

 

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 32 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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