Question 36 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 36 Chapter 7 of +2-A

Question 36 Chapter 7 of +2-A

36. Following is the Balance Sheet of Vishnu, Sanjiv and Sudhir as at 31st March 2018:

Liabilities   Amount Assets   Amount
Bills Payable   20,000 Cash   8,000
Creditors   18,000 Bills Receivable   12,000
Mrs. Vishnu’s Loan   20,000 Stock   25,000
Outstanding Salary   5,000 Sundry Debtors 40,000  
Profit and Loss A/c   10,000 Less: Provision for D. Debts 4,000 36,000
Workmen Compensation Reserve   15,000 Land and Building   50,000
Capital A/cs:     Furniture   10,000
Vishnu 40,000   Computers   5,000
Sanjiv 30,000   Investments   30,000
Sudhir 18,000 88,000      
    1,76,000     1,76,000

The profit-sharing ratio of the partners is 5 : 3: 2. At the above date, the partners decided to dissolve the firm. The assets were realised as follows: Bill Receivable was realised at a discount of 5%. All Debtors were good. The stock realised 22,000. Land and Building realised 40% higher than the book value. Furniture was sold for 8,000 by auction and auctioneer’s commission amounted to 500. Computers were taken by Vishnu for ana greed valuation of 3,000. Investments were sold in the open market at a price of 45,000, for which commission of 600 was paid to the broker. Bills Payable were paid at the full amount. Creditors, however, agreed to accept 10% less. All other liabilities were paid off at their book value. The firm retrenched its employees three months before the dissolution of the firm and firm had to pay 20,000 as compensation. Prepare Realisation Account, Partners’ Capital Accounts and Cash Account.

 

The solution of Question 36 Chapter  7 of +2-A: –

 

Realization Account
Particular
Amount Particular Amount
Bills Receivable 12,000 Provision for Doubtful Debts   4,000
Stock   25,000 Bills Payable   20,000
Sundry Debtors   40,000 Creditors   18,000
Land & Building   50,000 Mrs Vishnu’s Loan   20,000
Furniture   10,000 Outstanding Salary   5,000
Computers   5,000      
Investments   30,000      
      Cash A/c    
      Bills Receivable 11,400  
Cash A/c     Debtors 40,000  
Bills Payable 20,000   Stock 22,000  
Creditors 16,200   Land & Building 70,000  
Mrs Vishnu’s Loan 20,000   Furniture 7,500  
Outstanding Salary 5,000 61,200 Investments 44,400 1,95,300
Cash A/c   20,000 Vishnu’s Capital A/c   3,000
      C’s Capital:    
      Shares of X Ltd. 1,500  
      Shares of Y Ltd 1,000 2,500
           
Realisation Profit          
Vishnu’s Capital A/c 6,050        
Sanjiv’s Capital A/c 3,630        
Sudhir’s Capital A/c 2,420 12,100      
    2,65,300     2,65,300

 

 

Partners’ Capital Account
Part. Vishnu Sanjiv Sudhir

Part.

Vishnu Sanjiv Sudhir
To Realization A/c 3,000 By Balance B/d 40,000 30,000 18,000
        By P&L A/c 5,000 3,000 2,000
        By WCL A/c 7,500 4,500 3,000
        By Realization A/c 6,050 3,630 2,420
               
To Cash A/c 55,580 41,130 25,420        
  58,550 41,130 25,420   58,550 41,130 25,420

 

 

Bank Account
Particular
Amount Particular Amount
Balance b/d 8,000 Realization A/c   81,200
Realization A/c   1,95,300 Vishnu’s Capital A/c   55,550
      Sanjiv’s Capital A/c   41,130
      Sudhir’s Capital A/c   25,420
    2,03,300     2,03,300

 

 

 

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 36 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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