Question 33 Chapter 7 of +2-A

Question 33 Chapter 7 of +2-A

33. Following is the Balance Sheet of Arvind and Balbir as at 31st March 2018:

Liabilities AmountAssets Amount
Trade Creditors 45,000Cash 750
Bills Payable 12,000Bank 12,000
Mrs Arvind’s Loan 7,500Stock 7,500
Mrs Balbir’s Loan 15,000Investments 15,000
Reserve Fund 15,000Book Debts30,000 
Investments Fluctuation Reserve 1,500Less: Provision for D. Debts3,00027,000
Capital A/cs:  Building 22,500
Arvind15,000 Plant 30,000
Balbir15,00030,000Goodwill 6,000
   Profit and Loss A/c 5,250
  1,26,000  1,26,000

The firm was dissolved on the above date under the following arrangement: a Arvind promised to pay off Mrs Arvind’s Loan and took Stock at 6,000.
b Balbir took half the Investments @ 10% discount.
c Book Debts realised 28,500. d Trade Creditors and Bills Payable were due on the average basis of one month after 31st March but were paid immediately on 31st March @ 2% discount per annum.
e Plant realised 37,500; Building 60,000; Goodwill 9,000 and remaining Investments 6,750.
f An old typewriter, written off completely from the firm’s books, now estimated to realise 450. It was taken by Balbir at this estimated price.
g Realisation expenses were 1,500.
Show Realisation Account, Capital Accounts of Partners and Bank Account.

 

The solution of Question 33   Chapter  7 of +2-A: –

 

Realization Account
Particular
AmountParticular Amount
Stock7,500Provision for Doubtful Debts 3,000
Investments 15,000Trade Creditors 45,000
Book Debts 30,000Bills Payable 12,000
Building 22,500Mrs. Arvid’s Loan 7,500
Plant 30,000Mrs. Balbir’s Loan 15,000
Goodwill 6,000Investments Fluctuation Reserve 1,500
Arvind’s Capital A/c 7,500Arvind’s Capital A/c 6,000
   Balbir’s Capital A/c 6,750
Bank A/c :-  Balbir’s Capital A/c 450
Trade Creditors44,925    
Bills Payable11,980 Bank  
Expenses1,500 Book Debts28,500 
Mrs. Balbir’s Loan15,00073,405Plant37,500 
Profit transferred to:  Building60,000 
Arvind’s Capital A/c23,522.50 Goodwill9,000 
Balbir’s Capital A/c23,522.5047,045Investments6,7501,41,750
  2,38,950  2,38,950

 

 

Partners’ Capital Account
Part.ArvindBalbir

Part.

ArvindBalbir
To Profit and Loss A/c2,6252,625By Balance B/d15,00015,000
To Realization A/c Assets6,0007,200By Reserve Fund A/c7,5007,500
   By Realization A/c7,500
   By Realization profit A/c23,522.5023,522.50
      
To Cash A/c44,897.5044,897.50   
 53,522.5046,022.50 53,522.5046,022.50

 

 

Bank Account
Particular
AmountParticular Amount
Balance b/d12,000Realization A/c 73,405
Cash A/c 750Arvind’s Capital A/c 44,897.5
Realization A/c 1,41,750Balbir’s Capital A/c 36,197.5
      
  3,33,750  3,33,750

 

WORKING NOTE:-

Creditors45,000
Less:2% discount for 1 month75
Payment made to Creditors44,925
Bills Payable12,000
Less: 2% discount for 1 month20
Payment made for Bills Payable11,980

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 33 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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