Question 34 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 34 Chapter 7 of +2-A
Question No.34 Chapter No.7 - T.S. Grewal +2 Book 2019-Solution


Question 34 Chapter 7 of +2-A


34. Anju, Manju and Sanju were partners in firm sharing profits in the ratio of 2 : 2: 1. On 31st March 2018, their Balance Sheet was:

Liabilities AmountAssets Amount
Creditors 50,000Cash 60,000
Bank Loan 35,000Debtors 75,000
Employees Provident Fund 15,000Stock 40,000
Investments Fluctuation Reserve 10,000Investments 20,000
Commission Received in Advance 8,000Plant 50,000
Capital A/cs:  Profit and Loss A/c 3,000
  2,48,000  2,48,000

On this date, the firm was dissolved. Anju was appointed to realise the assets. Anju was to receive 5% commission on the sale of assets except for cash and was to bear all expenses of realisation. Anju realised the assets as follows : Debtors 60,000; Stock 35,500; Investments 16,000; Plant 90% of the book value . Expenses of Realisation amounted to 7,500. The commission received in advance was returned to customers after deducting 3,000. The firm had to pay 8,500 for Outstanding Salary, not provided for earlier, Compensation paid to employees amounted to 17,000. This liability was not provided for in the above Balance Sheet. 20,000 had to be paid for the Employees’ Provident Fund. Prepare Realisation Account, Capital Accounts of Partners and Cash Account


The solution of Question 34 Chapter  7 of +2-A: –



Realization Account
AmountParticular Amount
Debtors75,000Creditors 50,000
Stock 40,000Bank Loan 35,000
Investment 20,000Provident Fund 15,000
Plant 50,000Commission Received in Advance 8,000
   Investments Fluctuation Fund 10,000
Cash A/c:     
Commission Received in Advance5,0007,500Cash A/c:  
Outstanding Salary8,500 Debtors60,000 
Compensation paid to Employees17,000 Stock35,500 
Provident Fund20,000 Investments16,000 
Creditors50,000 Plant45,0001,56,500
Bank Loan35,0001,35,500   
Anuj’s Capital A/c 7,825Loss transferred to:  
   Anju’s Capital A/c21,530 
   Manju’s Capital A/c21,530 
   Sanju’s Capital A/c10,76553,825
  3,28,325  3,28,325



Partners’ Capital Account


To Profit and Loss A/c1,2001,200600By Balance B/d50,00050,00030,000
To Realization A/c Loss21,53021,53010,765By Realization A/c7,825 
To Cash A/c35,09527,27018,635    
 57,82550,00030,000 57,82550,00030,000



Bank Account
AmountParticular Amount
Balance b/d60,000Realization A/c 1,35,500
   Anju’s Capital A/c 35,095
Realization A/c 1,56,500Manju’s Capital A/c 27,270
   Sanju’s Capital A/c 18,635
  2,16,500  2,16,500




Anju’s commission

Anju’s commission=Assets RealisedX5
 =Rs 7,825  



Realisation of the Profit=50,000X90
 =Rs 45,000  



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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms


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