Question 32 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

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:

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

 

 

 

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 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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