Question 35 Chapter 7 of +2-A - T.S. Grewal 12 Class Part

Question 35 Chapter 7 of +2-A

Table of Contents

The solution of Question 35 Chapter 7 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

35. A, B and C were in partnership sharing profits in the ratio of 7: 2: 1 and the Balance Sheet of the firm as at 31st March 2018 was:

Liabilities		Amount	Assets	Amount
Capital A/cs:			Building	20,000
A	12,410		Plant	31,220
B	8,650		Goodwill	10,000
C	80,620	1,01,680	100 Shares in X Ltd At cost	2,400
Creditors		11,210	1,000 Shares in Y Ltd. At cost	10,000
Reserve for Depreciation on Plant		20,000	Stock	11,240
			Debtors	8,740
			Bank	1,210
			Patents	38,080
		1,32,890		1,32,890

It was agreed to dissolve the partnership as on 31st March 2018 and the terms of dissolution were—
a A to take over the Building at an agreed amount of 31,500;
b B who was to carry on the business, to take over the Goodwill, Stock and Debtors at book value, the Patents at 30,000 and Plant at 30,000 and Plant at 5,000. He was also to pay the Creditors;
c C to take over shares in X Ltd. at 15 each and d The shares in Y Ltd.to be divided in the profit-sharing ratio.
Show Ledger Accounts recording the dissolution in the books of the firm.

The solution of Question 35 Chapter 7 of +2-A: –

Advertisement-X

Realization Account
Particular	Amount	Particular		Amount
Building	20,000	Creditors		50,000
Plant	31,220	Reserve for Depreciation on Plant		50,000
Goodwill	10,000
100 Shares in X Ltd	2,400	A’s Capital A/c:
1,000 Shares in YLtd	10,000	Building	31,500
Stock	11,240	Shares of Y Ltd.	7,00	38,500
Debtors	8,740
Patents	38,080	B’s Capital A/c:
B’s Capital A/c Creditors	11,210	Goodwill	10,000
		Stock	11,240
		Debtors	8,740
		Patents	30,000
		Plant	5,000
		Shares of Y Ltd.	2,000	66,980

		C’s Capital:
		Shares of X Ltd.	1,500
		Shares of Y Ltd	1,000	2,500

		Loss transferred to:
		A’s Capital A/c	2,590
		B’s Capital A/c	740
		C’s Capital A/c	370	3,700
	1,42,890			1,42,890

Partners’ Capital Account
Part.	A	B	C	Part.	A	B	C
To Realization A/c	38,500	66,980	2,500	By Balance B/d	12,410	8,650	80,620
To Realization A/c Loss	2,590	740	370	By Realization A/c	–	11,210



To Cash A/c	–	–	77,750	By cash A/c	28,680	47,860	–
	41,090	67,720	80,620		41,090	67,720	80,620

Bank Account
Particular	Amount	Particular	Amount
Balance b/d	1,210	C’s Capital A/c	77,750
A’s Capital A/c	28,680
B’s Capital A/c	47,860

	77,750		77,750

Advertisement-X

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