Question 35 Chapter 7 of +2-A

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:

Liabilities AmountAssetsAmount
Capital A/cs:  Building20,000
A12,410 Plant31,220
B8,650 Goodwill10,000
C80,6201,01,680100 Shares in X Ltd At cost2,400
Creditors 11,2101,000 Shares in Y Ltd. At cost10,000
Reserve for Depreciation on Plant 20,000Stock11,240
   Debtors8,740
   Bank1,210
   Patents38,080
  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
AmountParticular Amount
Building20,000Creditors 50,000
Plant 31,220Reserve for Depreciation on Plant 50,000
Goodwill 10,000   
100 Shares in X Ltd 2,400A’s Capital A/c:  
1,000 Shares in YLtd 10,000Building31,500 
Stock 11,240Shares of Y Ltd.7,0038,500
Debtors 8,740   
Patents 38,080B’s Capital A/c:  
B’s Capital A/c Creditors 11,210Goodwill10,000 
   Stock11,240 
   Debtors8,740 
   Patents30,000 
   Plant5,000 
   Shares of Y Ltd.2,00066,980
      
   C’s Capital:  
   Shares of X Ltd.1,500 
   Shares of Y Ltd1,0002,500
      
   Loss transferred to:  
   A’s Capital A/c2,590 
   B’s Capital A/c740 
   C’s Capital A/c3703,700
  1,42,890  1,42,890

 

 

Partners’ Capital Account
Part.ABC

Part.

ABC
To Realization A/c38,50066,9802,500By Balance B/d12,4108,65080,620
To Realization A/c Loss2,590740370By Realization A/c11,210 
        
        
        
To Cash A/c77,750By cash A/c28,68047,860
 41,09067,72080,620 41,09067,72080,620

 

 

Bank Account
Particular
AmountParticular Amount
Balance b/d1,210C’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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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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