Question 35 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 35 Chapter 7 of +2-A
Question No.35 Chapter No.7 - T.S. Grewal +2 Book 2019-Solution

Question 35 Chapter 7 of +2-A

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:

Free Accounting book Solution - Class 11 and Class 12
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: –

 

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

 

 

 

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 35 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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